• Video transcript – Record keeping in your SMSF

    Record keeping is a key SMSF trustee responsibility.

    Besides being a requirement under super laws, good record keeping helps you manage your fund and prepare accurate financial accounts and statements.

    It will also help your SMSF auditor which may mean lower audit costs!

    Let’s take a look at the key record keeping responsibilities.

    You must notify the ATO within 28 days if there are changes to your fund, and keep a record of the changes.

    You must regularly review your fund’s investment strategy and document the review in meeting minutes.

    Your accounting needs to be accurate. You must keep separate accounting records for each member that clearly record activity related to them.

    If a member receives an income stream but still makes super contributions, you need to record these as two separate accounts.

    Remember to keep track of the type of contributions and any rollovers your fund receives.

    This helps your accountant work out the taxable and tax-free components of any benefits you later receive.

    Keeping records of all investment transactions will help you monitor investment performance and other considerations.

    There are specific timeframes for keeping certain types of records.

    Financial accounts and statements, SMSF annual returns, and statements provided to the ATO or other super funds must be kept for at least five years.

    A range of trustee documents and forms, as well as some other reports and records, must be maintained for at least ten years.

    It’s very important to make sure you stay on top of all of your record keeping duties because if you fail to – your SMSF auditor is required to report this to the ATO.

    Each trustee could be personally fined for each breach of the record keeping rules.

    If you need help with your record keeping – you should talk to an SMSF professional

    For more SMSF information take a look at our other videos – or visit the ATO website at ato.gov.au

      Last modified: 12 Nov 2015QC 39855