What responsibilities do trustees of superannuation funds have?

SMSF compliance: What are trustees’ responsibilities?

• Regulatory framework.
• Residency requirements.
• Passing the sole purpose test.
• Developing an investment strategy and rules.
• Considering member insurance needs.
• Accepting contributions and making payments.
• Monitoring total super balance and transfer balance caps.

Who is the trustee of a self managed super fund?

Anyone over 18 can be a Trustee of an SMSF including a spouse, adult child or friends. It is FREE to appoint Individual Trustees for an SMSF. Alternatively you may select a Company to act as a Trustee for your SMSF. In this case the Members of the SMSF will need to be the Directors of the Company Trustee.

Can a self managed super fund have one trustee?

Yes you can. There are two options in creating a single member SMSF. Corporate trustee – A corporate trustee is established to act as the trustee of the fund in which the single member is the sole director. Meanwhile, in order to establish a company to act as a trustee for an SMSF, the cost may vary from $800 upwards.

Does the ATO regulated self managed superannuation fund have an individual trustee or corporate trustee which has a director who is a legal personal representative or parent/guardian acting on behalf of a member?

All members of a self-managed super fund (SMSF) must be individual trustees or directors of the corporate trustee. If you are not eligible to be a trustee or director, you cannot be a member of an SMSF.

Can SMSF trustees be paid?

It is possible for you to set up your fund with only one member. The trustee of an SMSF can be either a corporate trustee or two individuals. – not an employee of the other director. A trustee or director cannot be paid for their services as a trustee or director of the trustee of the fund.

Can I pay myself for services provided to my SMSF?

Can I pay myself for services provided to my SMSF? Unless you are a qualified professional who uses their qualifications for the services provided, you cannot reimburse yourself. For example, if you are an accountant by trade, and prepare the SMSF’s tax return for which you are a trustee, you can pay yourself for this.

Who Cannot be a trustee of a SMSF?

You cannot be a trustee of an SMSF while you are an undischarged bankrupt, and you cannot remain a trustee if you become bankrupt or insolvent after you are appointed.

Who can join a SMSF?

Almost anyone can set up an SMSF together. SMSFs can have up to four members, usually they are all in the same family and the most common combination is two spouses as trustees of the SMSF. Almost anyone can set up an SMSF together.

Does a SMSF need 2 trustees?

If you choose not to have a Corporate Trustee, the SMSF must have two individual Trustees. One Trustee must be the Member and the other Trustee must be a person who is either: Related to the Member; or. Not an employer of the Member.

Can a SMSF trustee be paid for services?

SMSF trustees can’t be paid by their fund for performing their trustee duties but they can potentially be paid for other activities. To be eligible, the trustee must be qualified to provide the service, offer the service to the market and charge at market value.

Can a SMSF claim travel expenses?

Don’t forget, SMSFs cannot claim a deduction for travel expenses to inspect the property or for the cost of capital improvements to the rental property at the time they are incurred.

Who is my Super trustee?

The people who run your fund are called ‘trustees’. Investment managers look after your fund’s investments. Trustees often use asset consultants to help them choose which investment managers to use, and to help them decide their investment strategy.

What are the responsibilities of an SMSF trustee?

If the ATO feels that you don’t understand any of these responsibilities, the ATO can direct you to undertake an education course. Remember, even if you have an administrator or other SMSF professional managing your fund – you are still the trustee and the trustee duties and responsibilities remain with you.

What are the responsibilities of an SMSF auditor?

Approved auditors are registered with the Australian Securities and Investments Commission (ASIC). An SMSF auditor is responsible for analysing a fund’s financial statements and assessing its compliance with superannuation law. They must report any non-compliance issues to all fund trustees and the ATO.

What are the responsibilities of a super fund trustee?

You are responsible for making sure all contributions and payments comply with laws and are allowed under the trust deed. There are minimum standards for accepting contributions into your self-managed super fund (SMSF), and the trust deed of your own fund may have more rules.

Who is responsible for administering a SMSF in Australia?

SMSFs are regulated by the Australian Taxation Office. The ATO can impose harsh penalties on SMSF trustees for non-compliance. Complying super funds in Australia (including both SMSFs and public funds) are eligible for tax concessions under Australian super legislation.