Keeping SMSFs within the definition of an SMSF

Trustees should ensure the fund always stays within the legal definition of a self managed superannuation fund. There are penalties for falling outside of the definition.

If your self managed super fund no longer meets the definition of a self managed super fund, it may eventually be regulated by APRA. We will help you though within our jurisdiction.

Our actions could include

• working with you to restructure your fund to meet the definition of an SMSF
• giving you time for your fund to become licensed and move to APRA
• making your fund non-complying
• allowing your fund to wind up.

Example - A member rolled over their benefits into a self managed super fund but they never became a trustee. The member approached us for assistance, thinking we are the regulators of the fund.

This creates an administrative snowball for both funds and regulators, compounded as auditors detect these difficulties some time after they have occurred.

If you wish to remain regulated by us we will work with you and where possible allow you time to restructure your fund to meet the definition of an SMSF. We need you to take all reasonable steps though or we will be forced to take stronger action.

More information

Role and responsibilities of trustees