You should be - it not only makes sense but you're legally responsible for all decisions.
In a self managed super fund, trustees will be held to be equally responsible and liable if the SMSF breaches superannuation and tax laws.
Best practice would have every trustee fully informed and involved in the running of their SMSF. By receiving this newsletter, you are demonstrating your commitment to understanding issues that affect your SMSF. If you have a trustee in your SMSF who is not as involved, it is recommended that you send them this message.
All new trustees get a letter from the ATO when they commence, and they sign a trustee declaration to indicate they understand and accept their responsibilities. While advisers can assist you, your trustee responsibility cannot be delegated.
A recent decision by the Administrative Appeals Tribunal (AAT) - Shail Superannuation Fund v Commissioner of Taxation - highlights the possible consequences when a trustee is not fully involved.
The AAT case involved a husband and wife operating an SMSF. The husband withdrew nearly all the member benefits from the fund and left the country without paying the required tax. The fund was made non-compliant for serious contraventions.
While the AAT was sympathetic to the wife's situation as an individual, they affirmed the ATO's decision, making the point that 'any appearance of unfairness to (the trustee) as an individual should not, however, obscure the nature of the fund, the role of trustees or the regulatory regime within which they function'.
It is a clear message about the responsibilities of all trustees. The ATO asks that you consider your involvement in running the SMSF, review the SMSF Trustee Declaration and make sure that this doesn't happen to you.
Last Modified: Wednesday, 29 February 2012