Self Managed Superannuation Funds (SMSFs) play a major role in Australia’s super system. As an SMSF Trustee, there will be changes to your SMSF obligations that you need to prepare for. The changes aim to increase community confidence and improve the integrity, operation and efficiency of the SMSF sector.
Investing in collectables and personal-use assets
Rules for SMSFs investing in collectables and personal-use assets have been tightened and apply to all new investments from 1 July 2011. Trustees have until 1 July 2016 to ensure collectables and personal-use assets acquired prior to 1 July 2011 comply with the new standards or are disposed of.
Review your SMSF Investment Strategy
The rules around SMSF Trustees conducting a review of their fund’s investment strategy have been tightened. From the 2012-13 income year, Trustees are required to regularly review their fund’s Investment Strategy. The review is designed to ensure that the Investment Strategy continues to reflect the purpose and circumstances of the fund and its members. The minutes of the meeting held during the year can provide evidence of the outcomes of the review. Also consider insurance for members as part of the Investment Strategy.
Separation of your money and assets from the fund
Trustees have always had an obligation to keep the money and other assets of the Self Managed Superannuation Fund separate from those held by them personally, or by a standard employer-sponsor or an associate of a standard employer-sponsor. Stronger Super measures introduced on 7 August 2012 mean this requirement is now an operating standard, which gives the ATO the power to enforce compliance.
A person who intentionally or recklessly contravenes the standard is guilty of an offence punishable by a fine not exceeding $11,000. A breach of this standard may also form part of our consideration in the decision to declare an SMSF non-compliant.
Valuation of Fund assets at Market Value
Trustees need to value the Fund’s assets at Market Value for the purposes of preparing Financial Accounts and Statements. This measure was introduced in August 2012 as part of a suite of measures announced under Stronger Super.
The first time you will need to value an SMSF asset at its Market Value is for the 2012-13 income year Accounts and Statements, when you will need to determine the Market Value of the assets as at 30 June 2013.
