Depending on how you decide to go about managing your SMSF, there are many things you will need to do to ensure that your SMSF is compliant with the law. It's important to remember that this is a process, not a thing that can be done in one day. You need to take it step by step and learn as you go along.
SMSF Association
Whether you are an accountant, auditor or tax agent, the SMSF Association provides a professional membership to help you with SMSF compliance. You will have access to a technical research library and the latest developments in compliance.
The SMSF Association is an independent body representing the Australian selfmanaged super fund sector. It aims to raise the standards of advice provided to SMSFs. It supports other regulatory bodies and promotes best practice. It is governed by an elected board. It has a number of committees.
The SMSF Association believes that healthy superannuation is vital to our national prosperity. It works with other industry bodies to self-regulate and educate SMSF trustees. It also supports the Australian Taxation Office and the Australian Securities and Investment Commission.
SMSF trustees are required to keep records in accordance with the Act. They are also required to separate their personal and business affairs. It is important that all assets are re-valued to current market value. The ATO works with SMSF trustees to correct breaches. Non-compliance can lead to a range of penalties.
SMSFs are required to lodge income tax returns on time. They must also pay the supervisory levy. The ATO issues non-compliance notices to trustees if they fail to comply.
SMSF Accountant
Getting the services of a SMSF accountant will ensure that your fund is in compliance. This can mean the difference between retirement happiness and heartache.
A specialised SMSF accountant has a deep knowledge of superannuation legislation and will provide valuable advice on taxation and investment strategies. These professionals can also help to build a fund's balance. A specialised SMSF accountant will also ensure that all expenses are properly accounted for and that your fund's assets are valued at market value.
The Australian Taxation Office is becoming more vested in auditing SMSFs. It is concerned that many auditors are not following appropriate auditing programs or are not doing adequate audits. Consequently, the ATO is introducing new competency standards for SMSF auditors.
The new competency standards include meeting independence requirements and following the relevant auditing standards. It is also important that auditors follow the latest legislation.
The ATO is aware that some auditors are not using proper auditing programs and are not using engagement letters. However, the ATO believes that most audits are well conducted.
If your SMSF is in compliance, you will be eligible for many benefits. This includes special superannuation death benefits, government co-contributions, and carrying forward unused contributions.
You will also have more say over your retirement. Self-managed superannuation funds give you more control over your retirement savings. This means that you will be able to choose investments that will help you to achieve your financial goals.
SMSF Administration
Managing a Self Managed Super Fund (SMSF) can be time consuming. There are numerous rules and regulations that must be adhered to. Not only do SMSFs have to meet the requirements of the Superannuation Industry (Supervision) Act 1993 (SIS Act), but they must also be compliant with the Income Tax Assessment Act 1997 (ITAA).
While there are many benefits to creating an SMSF Administration, the management of these funds can be quite complex. These funds are governed by various regulators, such as the Australian Taxation Office (ATO), which has strict lodgement deadlines. Failure to meet these deadlines can lead to significant fines.
The ATO has issued a number of rules and regulations regarding SMSFs. These rules and regulations govern the types of investments that can be made by SMSFs. They also govern the payments that SMSFs make to their members. The Arm's Length rule, the Sole Purpose test, the In-House Assets rule and the Contributions Caps are just a few of the rules and regulations.
Using a specialist SMSF accountancy service can help trustees meet their obligations. They can help to prepare the correct financial statements, suitable investment strategies and pro-active financial advice. These services can also help to minimise the risks associated with maintaining compliance.