Choosing to manage your own superannuation fund through a Self-Managed Super Fund (SMSF) offers greater control over your investment strategy and the ability to respond swiftly to market changes. However, with this control comes significant responsibility. Are you confident that your SMSF is fully compliant with the necessary governance and regulatory requirements?
Here are five crucial areas to focus on as a trustee of your SMSF, and how GMD Advisory can assist you in staying on top of your responsibilities.
Managing Your SMSF – Five Keys to Success
As an SMSF trustee, you’re directly responsible for managing the fund. It’s crucial to be aware of the following responsibilities to ensure your fund operates smoothly and remains compliant.
1. Compliance and Governance
Understanding and fulfilling your role as a trustee is fundamental. This includes ensuring your fund meets the sole purpose test, maintaining updated trust deeds, and crafting a sound investment strategy. Additionally, you must adhere to all ATO administrative and reporting obligations and arrange for annual independent audits.
How We Can Help: At GMD Advisory, we assist with navigating the complex compliance landscape, helping you understand and meet all governance requirements, ensuring your fund operates within legal boundaries.
2. Investment Strategy and Performance
Your SMSF needs a robust investment strategy that aligns with your fund’s objectives and risk profile. Regular reviews and diversification of investments are essential, along with monitoring performance and adhering to in-house asset limits.
How We Can Help: We provide expert guidance on developing and maintaining a comprehensive investment strategy, ensuring your investments are well-aligned with your fund’s goals.
3. Contributions and Benefits
Adhering to contribution caps and managing the timing and amount of contributions is vital. Properly recording and reporting contributions, understanding preservation rules, and managing benefit payments in line with regulations are also key responsibilities.
How We Can Help: We offer advice on strategic contribution management and ensure that all transactions and benefits are handled correctly, safeguarding your fund’s compliance.
4. Record Keeping and Reporting
Accurate record-keeping is non-negotiable. This includes maintaining detailed records of transactions, minutes of investment decisions, and trustee meetings. Regular asset valuations and timely preparation of tax returns and member contribution statements are also necessary.
How We Can Help: GMD Advisory takes the burden of record-keeping off your shoulders by providing meticulous documentation services. We ensure that all your records are accurate, up-to-date, and compliant with regulatory standards, making tax time stress-free.
5. Separation of Business and SMSF Assets
A critical aspect of SMSF management is maintaining a clear separation between personal, business, and SMSF assets. Transactions involving the SMSF must be at arm’s length, especially when considering the purchase of business property.
How We Can Help: We help you maintain clear boundaries between your SMSF and other assets, ensuring compliance with legal requirements. Our guidance ensures that all transactions are conducted at arm’s length, protecting your fund from potential breaches.
Get Expert Help with Your SMSF
Whether you’re considering setting up an SMSF or currently managing one, it’s crucial to seek professional advice regularly. At GMD Advisory, we’re here to help with every aspect of SMSF management, from record-keeping and accounting to understanding tax implications.
Let us connect you with the right superannuation experts and financial advisers to ensure your SMSF is not only compliant but also thriving. Contact us today to discuss your SMSF concerns and secure the future of your investments.