In the last couple of years, Australia has been witnessing a sudden surge of self managed super funds and all for the right reasons. The SMSF is designed to provide greater flexibility in your retirement benefits and tax exemptions, hence it is considered to be much better than the other large super funds in the country.

The ‘Self managed super fund’ or the ‘DIY super fund’, is a superannuation fund having an integrated legal tax structure initiated especially for your retirement benefits. Unlike the other super funds, all members of the SMSF are either trustees or directors, in the case of a corporate trustee. The SMSF explicitly implies that when you are a trustee, you must shoulder the complete responsibility of managing the funds. It is also mandatory to get SMSF audit assistance for auditing and taxation purposes.

If you are a trustee member setting up an SMSF fund, you should be well informed about the obligations and duties vested in you and the other members. When you invest or hold an asset in your SMSF fund, any decisions made by you will not only affect you but every other member of the fund.

Be aware of your responsibilities as an SMSF trustee

• The SMSF can have up to 4 trustees
• Adherence to the Superannuation Industry Supervision Act 1993 (SISA) and SISR
• Maintenance of SMSF in compliance with ‘the sole purpose test’.
• Develop an ‘investment strategy’ by creating a detailed financial plan for you and every other trustee of the fund, their current and future financial needs.
• Accountable for the management of the funds, investment of assets and strategies to increase your retirement benefits.
• Segregate your assets and money of funds from other assets
• Honesty and diligence maintained by you in managing the fund
• Work in the best interest of all the fund trustees and beneficiaries

 The Australian Tax Office has provided the trustees with comprehensive information on the rules to be followed. For example, when a trustee pays off a benefit outside the regulations given, penalties may apply.

Even though you are expected to manage the Super fund and take responsibility for the same, the SMSF audit needs an authorized auditor. The government has made it mandatory that SMSF audit must be executed by a qualified accountant. The auditor must be independent of the accountant engaged in your SMSF accounting. You can reach out to smsf audit outsourcing services considering the intricacy and requirement of the audit.

You are expected to file an SMSF Annual Return within eleven months subsequent to the end of a financial year. Well ahead of the preparation of the report, you should identify and appoint a Registered Auditor to audit the SMSF Financial Report. To ensure a hassle-free audit process it is vital to provide adequate information to your SMSF auditor. Now get it touch with us for comprehensive SMSF audit assistance and look forward to a peaceful retirement!