Record keeping requirements for SMSF

Poor and inadequate record keeping are often recognised as a major problem for self managed super funds (SMSF).

One responsibility of being a trustee of a SMSF is to keep proper and accurate tax and super records.

It is important to keep updated records so that they can be made available to the fund’s auditor when they audit the fund each year.  Accurate records must also be provided when requested by the ATO

Accurate records can also help trustees to manage the fund efficiently.

Attention needs to be given to record keeping as it can pose a compliance risk. Trustees of a SMSF should ensure that they remain compliant as penalties do apply for those who fail to keep accurate and accessible records for the required timeframe.

The following records must be kept for a minimum of five years:

-accurate and accessible accounting records that explain the transactions and financial position of the SMSF

-an annual operating statement and an annual statement of the SMSF’s financial position

-copies of all the SMSF annual returns lodged

-copies of any statements that are required to be lodged to the ATO or other super funds

The following records must be kept for a minimum of ten years:

-records of all changes of trustees

-trustee declarations recognising the obligations and responsibilities for any trustee, or directors of a corporate trustee, appointed after 30 June 2007

-member’s written consent to be appointed as trustees

-copies of all reports given to members

-documented decisions about storage of collectables and personal-use assets

-minutes of trustee meetings and decisions, if matters affecting the fund were discussed

Posted on 21 March '14 by editor, under Uncategorized.