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  • Appoint your trustees or directors

    All members of the fund must be individual trustees or directors of the corporate trustee.

    New funds usually appoint trustees or directors under the fund’s trust deed.

    You need to ensure that the people who become trustees or directors of the SMSF:

    All trustees and directors must:

    • consent in writing to their appointment
    • sign the Trustee declaration stating that they understand their duties and responsibilities (this must be done within 21 days of becoming a trustee or director).

    You must keep these documents on file for the life of the SMSF and for 10 years after the SMSF winds up.

    Penalties may be imposed if these things aren't done. All trustees and directors are bound by the trust deed and are equally responsible if its rules aren’t followed.

    On this page:

     

    Duration 2:23 mins. A transcript of SMSF – Trustee declaration is also available.

    Ensure members are eligible to be trustees or directors

    All members of the fund must be individual trustees or directors of the corporate trustee, so make sure they're eligible.

    Anyone 18 years or over can be a trustee or director of a super fund as long as they are not under a legal disability (such as mental incapacity) or a disqualified person.

    A person is disqualified if they:

    • have been convicted of an offence involving dishonesty
    • have been subject to a civil penalty order under the super laws
    • are insolvent under administration (including being an undischarged bankrupt)
    • have been disqualified by a court or regulator (for example, by us or APRA).

    A company can't be a corporate trustee if:

    • a director or other responsible officer of the company (such as a secretary or executive officer) is a disqualified person
    • the company has been deregistered by ASIC
    • a receiver, official manager or provisional liquidator has been appointed to the company
    • action has started to wind up the company.

    Members under 18 can't be a trustee or director but a parent, guardian or legal personal representative can be a trustee or director on their behalf.

    What it means to be a trustee or director

    Whether you're a trustee or director of a corporate trustee, you're responsible for running the fund and making decisions that affect the retirement interests of each fund member, including yourself. As a trustee or director, you must:

    • act honestly in all matters concerning the fund
    • act in the best interests of all fund members when you make decisions
    • manage the fund separately from your own affairs
    • know, understand and meet your responsibilities and obligations
    • ensure that the SMSF complies with the laws that apply to it.

    All trustees and directors are equally responsible for managing the fund and making decisions – you're responsible for decisions made by other trustees even if you're not actively involved in making the decision.

    You can appoint other people to help you or provide services to your fund (for example, an accountant, administrator, tax agent or financial planner). However, the ultimate responsibility and accountability for the SMSF’s actions lie with you, as trustee or director.

    As an individual trustee or director of a corporate trustee, you may be personally liable to pay an administrative penalty if certain laws relating to SMSFs are not followed.

    Other members of the fund can take action against you if you don't follow the terms of the trust deed. Any fund member who suffers loss or damage because of a breach of any trustee duties may sue any person involved in the breach.

    See also:

    Legal personal representatives

    A legal personal representative can be:

    • the executor of the will or the administrator of the estate of a deceased person
    • the trustee of the estate of a person under a legal disability or a minor
    • a person who holds enduring power of attorney to act on behalf of another person (see also SMSF ruling 2010/2).

    A legal personal representative can act as a trustee or director of a corporate trustee, on behalf of:

    • a deceased member, until the death benefit becomes payable
    • a member under a legal disability
    • a minor (a parent or guardian can also act as a trustee on behalf of a minor).

    A legal personal representative can't act as a trustee on behalf of a disqualified person, such as an undischarged bankrupt.

    A legal personal representative does not include a registered tax agent or an accountant unless they meet the definition above.

    Trustee declaration

    The Trustee declaration is signed by trustees and directors of a corporate trustee of an SMSF to declare they understand their obligations and responsibilities.

    Read the Trustee declaration carefully. If you do not understand any of the responsibilities listed in the Trustee declaration then you should find out about them before signing the declaration.

    To find out more speak to a professional advisor or contact us on 13 10 20.

    See also:

    Note: You must keep your completed declaration for the life of the SMSF and for at least 10 years after your SMSF winds up. Do not send your completed declaration to us unless we ask for it.

    How to obtain this form

    The form Trustee declaration (NAT 71089, PDF, 315 KB)This link will download a file can be downloaded in Portable Document Format (PDF).

    Who should complete this declaration

    You must complete this declaration if you become a trustee or the director of a corporate trustee of a new SMSF or of an existing SMSF.

    This declaration must be signed within 21 days of becoming a trustee or director.

    A separate declaration is required to be completed and signed by each and every trustee or director.

    You must also complete this declaration if you:

    • have undertaken an ATO approved course of education to comply with an education direction
    • are a legal personal representative who has been appointed as a trustee or director on behalf of a
      • member who is under a legal disability (usually a member under 18 years old)
      • member for whom you hold an enduring power of attorney
      • deceased member.
       

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    Last modified: 16 Feb 2018QC 23314