Annual obligations 

As trustee, there are several administrative obligations that you are required to attend to. Many trustees appoint administration service providers to help manage records and assist with tax compliance. 

The annual obligations for an SMSF include:

• Appointing an SMSF auditor – an approved, independent auditor must be appointed to audit the fund each year. The auditor examines your fund’s financial statements and assesses the fund’s compliance with relevant superannuation law.
• Valuing the fund’s assets – for the purpose of preparing the annual SMSF’s accounts and member statements, the market value of the fund’s assets must be recorded each year. For some assets, such as commercial or residential property, the market valuation may not be easy to determine so a valuer may need to be engaged which will cost.
• Lodging an annual income tax return – Once the audit of the annual financial statements has been finalised, the income tax return needs to be lodged which will report on income tax, super regulatory information, member contributions and the supervisory levy payable ($259 per year). It is a requirement of Trustees to keep proper super and tax records for the SMSF. Trustees need to keep a minute book for trustee minutes to record investment and other decisions and a set of accounts to record financial transactions. SIS and taxation laws may require other records to be maintained.
• Ensure the ATO is notified of any change in trustee structure, members, addresses or change in fund status. Please note: The ATO needs to be notified within 28 days of any of these changes, not just on an annual basis.
• Other obligations – paying any minimum annual income stream payments required under superannuation laws; lodging a transfer balance account report (if required); obtaining an actuarial certificate (if required); and reviewing the fund's investment strategy and documenting the review.