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10 Basic Tips To Manage Your Super Fund

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August 26, 2021

Once you establish your self-managed superannuation fund, several tasks need to be carried out. The required number of tasks will vary from one fund to the other, depending on the circumstances. But there are particular administrative responsibilities that every SMSF has to fulfill each year.

Managing your own SMSF may seem to be stressful because of the significant number of liabilities. But, having qualified SMSF Accountants on your team can offer you substantial help. They can effectively manage all these things on the trustee’s behalf. Here we provide a list of critical administrative tasks associated with SMSF management that can make you understand the topic better.

Top 10 Tips For Managing Your SMSF

Before we start, let us be very clear about the list. This list covers general tips and excludes specific trustee and investment-related responsibilities, and for your personal situation, you must seek advice from professional SMSF consultants.

1. Fund income and tax returns

Whenever you set up your self-managed superannuation fund, it will be mandatory to lodge a combined regulatory return and fund income tax. This combined thing is termed a self-managed superannuation fund annual return. It needs to be lodged every year with the Australian Taxation Office.

2. Valuing fund assets

Valuations of fund assets are necessary. They are required to complete the annual return and financial statements for the SMSF and member benefits reporting. One important point you should note here is that the valuation should remain effective at the reporting date. In most cases, this date falls on 20 June every year.

3. Engaging an SMSF auditor

Appointing an SMSF auditor for your fund management can be a very effective method. It will be a good idea to consider top-rated SMSF services in Perth for the audit purpose of your fund. Through the annual audit, approved auditors can come in very handy to maintain the legal compliance of your super fund.

4. Acceptance of contributions

A superannuation contribution is an amount that can be added to the fund’s super balance. The Australian superannuation law has some specific standards that every self-managed superannuation fund must meet to accept a valuable contribution. And as a trustee, it will be your responsibility to oversee this. You must make sure your super fund can take any specific superannuation contribution.

As per Australian rules, all employers must pay at least 10% of their annual salary every year.

5. Notification of change in fund details

Fund details include name, address, contact details, trustees, and membership. If any change in any information occurs, the SMSF should send this information to the Australian Taxation Office. Remember, once the change is made, you have to notify it within 28 days.

6. Record keeping

Maintain accurate superannuation and tax records

Like any business, the authority should keep all the records properly in a superannuation fund. As a trustee, it is your responsibility to maintain accurate superannuation and tax records. This strategy will make your SMSF management more effective and efficient.

7. Rollovers out of the fund

On some occasions, an SMSF member may want to transfer a part or all of the benefits to any other superannuation fund. This situation is called the rollover of benefits. Whenever it occurs, the trustee needs to complete a Rollover Benefits Statement, and the receiving fund and the concerned member should get copies of the documents from the trustee. Moreover, the trustee will have to make sure the rollover is to a valid superannuation fund.

8. Making benefit payments

As a trustee, another essential duty that you must fulfill is paying superannuation benefits. There are two ways to do it. You can pay it either as an income stream or a lump sum.

9. Paying benefits ‘in-specie’

As an SMSF trustee, you will need to pay some handsome amounts to your members. These are all superannuation benefits, which also include death benefits. You can make these payments either via cash or by in-specie asset transfer out of your SMSF. The term ‘in-specie means ‘in actual form.’ Thus, an in-specie transfer means transferring ownership from one person or entity to another similar entity, where you do not need to convert your asset to cash.

10. PAYG withholding

As a trustee, you have to withhold tax. This tax is called PAYG (Pay As You Go) withholding, where a member is paid a taxable benefit. There are common situations when these taxes are mostly paid. PAYG withholding is paid if a member’s age is less than 60 and receives a member benefit through a lump sum or income stream.

Final Words

If you want to set up your SMSF in Perth, these tips can come in handy as they are Australia-specific. But for personal situations and queries related to investment strategy, it will be better to consult any professional SMSF accountant.

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