SMSF Toolkit

   

 

Clicking on the links or videos below will take you to a variety of resources that we have compiled to assist you with either a) your decision to go into a SMSF or b) what you need to be aware of in managing your fund.

Should you wish to speak with one of our SMSF Specialists, please call John Tsolakis on 02 9410 6999 or email john@trumans.com.au

Seven things you need to know about Self-Managed Super Funds 

Click here

Setting up your SMSF

What are the key steps to take in setting up an SMSF?

 

 

Can I do it all myself?

No - watch this video to find out why not

 

 

Annual obligations

There are important obligations to be met before your annual return can be lodged.

 

 

Developing your investment strategy 

Having an investment strategy is a requirement under the superannuation laws.

 

 

Want to buy property in your super?

 

 

 

What type of property can a Self-Managed Super Fund buy?

 

You can use your SMSF to buy residential or commercial property. However, any property held by your SMSF must meet the sole-purpose test of providing retirement benefits to fund members, or a benefit to their dependants if a member dies before retirement.

Residential property

There is nothing to stop an SMSF from investing in residential property as long as you don’t buy the property from a related party of a member.

For example, you can’t own the family home through your super fund. Nor can you rent a residential property owned by your SMSF to a fund member, or to their related parties.

However, you can buy an investment property that you rent to tenants who are not fund members or relatives.

Commercial property

You can also hold commercial property, including your own business premises, through your SMSF.

While the property still needs to meet the sole-purpose test of providing retirement benefits to its members, when dealing with commercial property, an SMSF can generally buy the property and lease it back to a member or a related party of the fund – including the member’s business.

An arm’s length sale price and lease arrangement is especially important when acquiring and/or leasing property to a member or related party of the fund.

 

Legislation and Regulations

Some explanations to assist trustees with the meaning of important parts of the legislation and regulations.

 

Explanation

Section or
Regulation

The fund must meet the definition of an SMSF S17A
The trustees must keep and maintain accouting records for a minimum of five years S35AE
The trustees must prepare, sign and retain accounts and statements S35B
The trustees must provide the auditor with the necessary documents to complete the audit in a timely and professional manner; and within 14 days of a written request from the auditor S35(C)(2)
The trustee / director of a corporate trustee must not enter into a contract that would prevent / hinder them from exercising the powers of a trustee / corporate trustee S52B(2)(e)

The fund must be maintained for the sole purpose of providing benefits to any or all of the following:

  • fund members upon their retirement
  • fund members upon reaching a prescribed age
  • the dependants of a fund member in the case of a members death before retirement
S62
The trustees must not loan monies or provide financial assistance to any member or relative at any time during the finacial year S65
The trustees must not acquire any assets (not listed as an exemption) from any member or related party of the fund S66
The trustees of the fund must not borrow any money or maintain existing borrowing (not listed as an exemption) S67
The fund must comply with the limited recourse borrowing arrangement rules when borrowing to purchase single acquirable asset or replacement assets (not listed as an exception of the borrowing rules) S67A - 67B
The trustees must comply with the in-house asset rules (these relate to transactions of any kind with a related party of the fund) S69-71E
The trustees must comply with the rules relating to the valuation  of in-house assets (arms-length market value) S73-75
The trustees must comply with the in-house asset rules  S80-85
The trustees must keep minutes of all meetings and retain the minutes for a minimum of 10 years S103
Trustees who became a trustee on or after 1 July 2007 must sign and retain a trustee declaration S104A
All investment transactions must be made and maintained at arms- length – that is, purchase, sale price and income from an asset reflects a true market value/rate of return S109
A disqualified person cannot be a trustee, investment manager or custodian of a superannuation fund S126K
Pension payments must be made at least annually, and must be at least the amount calculated under Schedule 7 of the compliance report Sub Reg 1.06 (9A)
Trustees must formulate, regularly review and give effect to an investment strategy for the fund Reg 4.09
The assets of the SMSF must be held separately from any assets held by the trustee personally or by a standard employer sponsor or an associate of the standard employer sponsor Reg 4.09A & S52B(2)(d)
Investment returns must be allocated to members in a manner that is fair and reasonable Reg 5.03
Member minimum benefits must be maintained in the fund until transferred, rolled over, allotted (to the member’s spouse) or cashed out in a permitted fashion Reg 5.08
Payments of member benefits must be made in accordance with Part 6 or Part 7A of the regulations and be permitted by the trust deed Reg 6.17
Contributions can only be accepted in accordance with the applicable rules for the year being audited Reg 7.04
When preparing accounts and statements required by subsection 35B(1) of SISA, an asset must be valued at its market value Reg 8.02B
Trustees must not recognise an assignment of a super interest of a member or beneficiary Reg 13.12
Trustees must not recognise a charge over or in relation to a member’s benefits Reg 13.13
Trustees must not give a charge over, or in relation to, an asset of the fund Reg 13.14
Investments in collectables and personal use assets must be maintained in accordance with prescribed rules Reg 13.18AA
   
   

 

Latest News & Alerts


August Newsletter

Out Now!

 

  • Travel allowances and proper use of the exception to substantiate claims
  • Tax deductions specifically for SMSFs
  • Deductions for finance for a rental property
    ... and more


 

 
         

  Check out our SMSF Toolkit here