What are the trustee’s administrative obligations?

The trustees must ensure that financial statements comprising a statement of financial position and operating statement are prepared for each financial year, and lodge the fund's income tax and regulatory return (Annual Return).

The financial statements and trustee's compliance with the superannuation rules are required to be audited by an independent approved SMSF auditor each financial year.

See SMSF accounting and taxation lodgement.

How long are records to be retained?

The following are to be retained for at least 10 years:

• minutes of all trustee meetings at which matters affecting the fund were considered (this includes investment decisions and decisions to appoint members and trustees)
• records of all changes of trustees, including directors of the corporate trustee
• each trustee's consent to be appointed as a trustee of the fund or a director of the corporate trustee
• all trustee declarations
• copies of all reports given to members.

The following are to be prepared and retained for at least 5 years:

• an annual statement of the financial position of the fund
• an annual operating statement
• copies of all annual returns lodged
• accounts and statements that accurately record and explain the transactions and financial position of the fund.

What happens if the trustees breach superannuation laws?

In situation of breach of the SIS Act and/or Regulations, the auditor will qualify their report and report the breach to the ATO after concluding their audit of the trustee’s compliance with the prescribed SIS Act and/or Regulations.

The ATO may initiate their review or audit. Superannuation Accounting Services can provide practical advice on breach rectification and any potential consequence. In more complex situation that may not be easily unwound, we can assist with early engagement and voluntary disclosure to the ATO for a more positive outcome.

See Compliance issue.