A Self-Managed Super Fund is a popular choice for many Australians looking to grow their retirement fund. While the perks of flexibility, control and greater investment options are quite appealing, a recent survey revealed that a third of trustees aren’t aware of their obligations.
What many individuals taking advantage of SMSF don’t realise is despite perhaps being surrounded by a team of well-rounded professionals, the ultimate responsibility of compliance falls on their shoulders alone. This is where many individuals fall into the trap of assuming SMSF is a ‘set and forget’ fund, and fail to put the adequate time into monitoring their obligations.
Like any other super fund, SMSFs must comply with government legislations, keep strict records and stick to regimented auditing/reporting requirements. Trustees holding a SMSF also need to appoint an approved auditor who independently monitors the compliance status of the fund each financial year.
Common fines related to non-compliance include:
- Failure to prepare financial statements: $1,800
- Failure to sign the trust declaration: $1,800
Some fund owners also risk being disqualified or having their assets frozen for an extended period if they continue to infringe on their specified obligations.
The best asset you can ever have is knowledge. Educating yourself on the important aspects of a SMSF can greatly assist in avoiding the pitfalls of non-compliance and neglecting your tax obligations.
If you’re a trustee to a self-managed super fund and want to expand your knowledge, come in and talk to us so we can help point you in the right direction.