Self managed superannuation funds—checklist (short version)

Purpose

This short form checklist is designed to draw your attention to details that you, as a trustee of a self managed superannuation fund (SMSF), must be aware of in the operation of your fund. A fund that is complying with the rules is taxed at 15%.

A LONG FORM CHECKLIST IS ALSO AVAILABLE

This checklist is intended to be used as a guide. Compliance of your fund is a matter which can only be determined at a given point in time considering all the facts at that time.

How to use the checklist

The checklist highlights some of the more important rules under the Superannuation Industry (Supervision) Act 1993 (SISA) that you, as a trustee, must comply with.

If, when using the checklist, you identify a problem with your fund or need further information on this topic the following may assist you:

seek advice from your professional adviser eg. financial planner, accountant, tax agent etc
visit our Superannuation website at www.ato.gov.au/super
obtain a fax by phoning 13 28 60
phone the Superannuation Infoline on 13 10 20, or
write to:

Superannuation Business Line
Australian Taxation Office
PO Box 277
WTC VIC 8005

visit ATO Law for legal and policy information at law.ato.gov.au.

If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on 13 14 50 for help with your call.

If you have a hearing or speech impairment and have access to appropriate (TTY) or modem equipment, phone 13 36 77.

If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.

Checklist

Purpose of fund
My fund is managed and maintained by the trustees for the sole purpose of providing retirement benefits for members.	[]
Responsibilities of trustees
All the trustees of my fund are aware that they are solely responsible for the compliance of the fund, even if advice is obtained from a tax agent, financial planner etc.	[]
Compliance
If my fund complies with ALL the rules it can take advantage of tax concessions.	[]
Set up of fund
The members of my fund are also trustees. My fund meets the new SMSF definition.	[]
Election
A one-off election to be regulated in accordance with section 19 of SISA was made by my fund with the Tax Office, within 60 days of establishing the fund. Funds in existence prior to 1 November 1999, would have elected with APRA.	[]
Tax file number
My SMSF has its own tax file number.	[]
Australian Business Number
My fund has considered whether it should obtain an Australian Business Number (ABN). Although it is not compulsory, it is in the best interests of the fund to obtain an ABN.	[]
Separate bank account
My fund maintains a separate bank account. Money belonging to the fund is kept entirely separate from accounts of the members, the trustees and related employers (employer-sponsors).	[]
Investment strategy
My fund has a medium to long term investment strategy.	[]
The aim of my fund’s strategy is to increase members’ benefits over time.	[]
Accepting contributions
My fund accepts contributions only as set out in the trust deed and allowed under the SISA.	[]
Investing The assets of the fund are kept separate at all times from those of:
the members	[]
the trustees; and	[]
related employers	[]
Transactions at arm’s length
All transactions by the fund are conducted on a strict commercial basis.	[]
The fund can demonstrate that market value has been paid and received on all transactions.	[]
In-house assets
I am aware that special rules apply to restrict certain investments in assets when dealing with a related party of the fund. These are known as in-house assets.	[]
Paying benefits
My fund makes payments only as allowed under the trust deed and the SISA.	[]
Significant adverse event
If my fund cannot meet payments to a beneficiary due to lack of funds, the Tax Office will be notified within three days and all members of the fund will be informed.	[]
Reporting requirements
My fund will prepare all necessary paperwork in relation to eligible termination payments, payment of PAYG withholding amounts, reasonable benefit limits and surcharge.	[]
Annual requirements The fund will:
have the records examined by an approved auditor and prepare accounts and member statements at the end of each year	[]
lodge its combined Income Tax and Regulatory return, on time, with the appropriate authority..	[]
pay the supervisory levy and its tax liability, when due	[]
comply with surcharge requirements.	[]
Keeping of records
The fund will keep (for 5 years) accounting records which comply with accounting guidelines for true and accurate accounts.	[]
Responsible accounting practices will be adopted by the trustees.	[]
The trustee will keep (for 10 years) records which relate to the management of the fund, e.g. minutes of all meetings.	[]
Tax matters Records will be kept by my fund in relation to:
deductions claimed for administrative and operating expenses of the fund	[]
sales/purchases of assets for capital gains tax purposes	[]
tax file numbers of members	[]
deductions claimed for the provision of death and disability benefits for members	[]
copy of audit reports will be retained with records	[]

NAT 6854

Last Modified: Wednesday, 25 February 2004

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