Trustee Responsibilities

Every SMSF trustee must:

  • Act honestly and in members’ best interests.
  • Keep SMSF assets separate from personal assets.
  • Ensure the fund complies with the law.

ATO Compliance Requirements

  • Sole Purpose Test – SMSF must exist only to provide retirement benefits.
  • Investment Restrictions – No loans to members, no personal use assets.
  • In-house Asset Rules – No more than 5% of SMSF invested in related-party assets.
  • Annual Audit – Independent SMSF auditor required.
  • Annual Return – Must be lodged with ATO.

Contribution Rules

  • Concessional (before tax): $30,000 cap (2025).
  • Non-concessional (after tax): $120,000 cap (2025).
  • Downsizer contributions: From age 55, up to $300,000.

Penalties for Non-Compliance

  • Administrative penalties (up to $18,780 per breach).
  • Fund made non-compliant (loses tax concessions).
  • Civil or criminal prosecution in extreme cases.

ATO Compliance Checklist

  • SMSF Trust Deed drafted
  • Corporate trustee registered
  • ABN/TFN obtained
  • Investment strategy in place
  • Bank account established
  • Auditor appointed
  • Insurance considered

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