Running a self-managed super fund

Your obligations

As an SMSF trustee, you are ultimately responsible for running your SMSF. It is important you understand your duties, responsibilities and obligations.

As a trustee of an SMSF, you need to act according to the following:

• your fund's trust deed
• the provisions of the super law, including
• Superannuation Industry (Supervision) Act 1993 (SISA)
• Superannuation Industry (Supervision) Regulations 1994 (SISR)
• the Income Tax Assessment Act 1997 (ITAA 1997)
• the Tax Administration Act 1953 (TAA 1953)
• the Corporations Act 2001
• other general rules, such as those imposed under other tax and trust law.

If there is a conflict between the super law and the trust deed, the law overrides the trust deed. If you fail to perform your duties according to the law, you may incur penalties.

If you are a new trustee or newly appointed director of a corporate trustee, you need to sign the Trustee declaration within 21 days of your appointment to show that you understand your duties as a trustee of an SMSF. If you do not sign and keep the declaration for at least 10 years, it is an offence and penalties may apply.

To download the Trustee declaration (NAT 71089), refer to Trustee declaration.

As an SMSF trustee you should always consider if an SMSF continues to meet the needs of all members. It is the trustees' duty to protect the assets of the SMSF.

You should also be aware that under existing super law, members of an SMSF are not covered by a government or industry compensation scheme for losses caused by fraud or theft. However, you do have certain rights and options available if your fund suffers a financial loss due to fraudulent conduct or theft. Legal options are available under corporations law if you received advice or services from an Australian financial services licensee who was involved in the fraudulent conduct or theft. You should seek legal advice about taking action against a person who engaged in fraudulent conduct.

Sections within Running an SMSF

• Single member funds
• Legal personal representatives
• Members who are overseas
• Your obligations
• Relationship breakdown
• Save only for your retirement
• Understand the rules