Self-managed super funds - trustee declaration

What do you need to do?

The declaration must be signed within 21 days of you becoming a trustee (or director of the corporate trustee) of an SMSF. You, and the other trustees (or directors of the corporate trustee) of the fund, must ensure that the declaration is retained for the greater of 10 years or the period for which you are a trustee or director of the corporate trustee.

Example 1: Sarah was an individual trustee of an SMSF for eight years before she left the fund. Sarah's declaration must be retained for 10 years.

Example 2: Ramiro was the sole director of the corporate trustee of an SMSF for 13 years before deciding to retire. He decided to pay out all fund benefits and wind up the fund. The fund has been audited every year and no contraventions have been reported by the auditor. All returns and reports have been lodged, assessments received, and liabilities met. Ramiro must ensure the declaration is retained for the 13 years that he was the director of the corporate trustee of the fund and until the fund is finally wound up.

It is the responsibility of each trustee (or director) to ensure that all new trustees (or directors) comply with this obligation. Do not send the declaration to us. The declaration is to be retained with your records. We recommend that you keep a copy of the declaration and refer to it and Self-managed super funds - key messages for trustees (NAT 71128) when making important decisions, such as those relating to choosing investments, accepting contributions and paying benefits.

You must make the declaration available to us for inspection when requested to assist us during the process of an audit or review. Failure to sign and retain the declaration, or make it available when requested, may result in penalties being imposed.