SMSF SETUP & ADMINISTRATION INFO
One of the responsibilities trustees of self managed super funds have is to ensure the annual accounting and reporting obligations of the fund are met. This is often simply referred to as the annual administration of the fund, with certain records needing to be kept for a minimum time frame.
WHAT DOES IT INCLUDE?
SMSF administration is made up of two broad categories:
1. ATO Lodgment & Audit
This is the annual lodgment to the ATO of the SMSFs combined income tax and regulatory return. Prior to this, the fund must have its financial accounts and statements prepared (usually by an SMSF accountant) and audited by an approved auditor, who ensures that the trustees have complied with all SIS laws and regulations. Trustees must also pay any income tax due, along with the supervisory levy to the ATO each year.
2. Record keeping
Trustees must also ensure that they keep the records of the SMSF for a required period of time.
The following records must be kept for 5 years:
- the annual statement of financial position, and annual operating statement
- the accounting records that explain the financial position and transactions of the fund.
The following records must be kept for 10 years:
- the annual ATO returns lodged
- copies of all member reports
- records of all changes to the trustees
- the written consent of members to be appointed as trustees
- any minutes of trustee meetings and/or decisions, where discussions were held on matters the affect the fund.
Whilst this list would make it appear that SMSF administration is a fairly homogeneous service, the reality is that it actually comes in a variety of choices.
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