The importance of self-managed super fund administration

Apart from having to report to the ATO on an annual basis, the moment you sign your Trustee Declaration, you are declaring that you understand your trustee obligations and responsibilities.

Self-managed superannuation is becoming an increasingly popular choice. According to the ATO, According to the latest SMSF Quarterly Statistical Report, over 63 per cent of all new SMSF establishments in the December 2023 quarter were made up by members under age 50. This proves that superannuation is no longer just a focus for those who are nearing retirement. With establishments on the rise, it’s important to have your specialised team in place from inception to ensure you adhere to compliance requirements.

Options for SMSF administration vary greatly, making it even more crucial that you do your research and ask questions to understand what the provider will be offering you, and with fraud and investment scams on the rise - where your super money is being invested. 

Why is SMSF administration so important? 

SMSF Trustees have several administrative obligations to ensure their fund is compliant with superannuation legislation including:

• Establishing your fund – this includes setting up the Trust with a Trust Deed.
• Registering your fund – applying for an ABN and TFN with the ATO and the Australian Business Register (ABR).
• Appointing an independent auditor – a trustee must appoint an auditor no later than 45 days before the lodgement of the SMSF annual return. The independent auditor must be licensed with ASIC.
• Valuing fund assets at market value – superannuation regulations require the trustees to ensure the fund assets are valued each year and in line with valuation guidelines.
• Event-based reporting – knowing when it’s time to report to the ATO for events like commencing a retirement phase income stream.
• Reporting any fund member or trustee changes – updates to the ABR, ASIC and the ATO are required.
• Maintaining general and financial fund records – keeping track and filing fund paperwork and, importantly, keeping them separate from your personal records.
• Paying taxes and levies – every SMSF has a supervisory levy to pay each year, in addition, depending on the tax position of your fund, you may also have tax payable due upon lodgement of the tax return.
• Ensuring compliance – making sure your fund remains on the Super Fund Lookup website by lodging your annual return on time.

A range of penalties can be imposed by the ATO. Individual Trustees and Directors of Corporate Trustees are personally liable to pay an administrative penalty. Penalties are imposed via a penalty unit system ranging from 5 to 60. Currently, each penalty unit incurs a fine of $275, and a breach could range between $1,375 (5 x $275) to $16,500 (60 x $275). It is imperative as Trustees that you understand your responsibilities and keep abreast of what is on the ATO’s compliance radar.

Learn more about how our Superannuation and SMSF services can help you

Visit our Superannuation and SMSF page

You’ll be supported with us

• Assistance with the setup of your SMSF
• Completion of all annual tax, administration, and compliance
• Facilitate the external audit for your SMSF
• Assist with rolling over your Super to your SMSF
• 24/7 access to your SMSF dashboard online
• All compliance work is processed in-house and onshore
• Personalised one on one service
• Access to Grant Thornton’s Licensed Superannuation Advisers
• Access to the Grant Thornton network for all business and taxation matters
• Latest technology to streamline the administrative process for efficiency

The concept of self-managed doesn’t mean you are in this alone. At Grant Thornton, we have a dedicated National Superannuation Team that specialises in the administration and lodgement of the annual returns. We also have relationships with external auditors to ensure your SMSF remains compliant. In addition, we also have licensed advisers that can provide you with superannuation specific advice. 

We’re here to help

Our team is based here in Australia and all administrative tasks are processed onshore. We use current technologies to streamline your data and give you up-to-date information helping you as a trustee to make informed decisions for your SMSF.

Please reach out to our team of experts today for advice around the administration of your self-managed super fund.