Self-Managed Super Funds (SMSFs) offer individuals more control and flexibility over their retirement savings. However, with great power comes great responsibility, and one of the critical aspects of SMSF management is diligent record-keeping.
In this article, we will explore SMSF record-keeping requirements, the types of records that must be maintained, and for how long. Whether you are already managing an existing SMSF or looking for advice for setting up an SMSF, understanding these crucial aspects is paramount to ensuring compliance with the Australian Taxation Office (ATO) and maximising your retirement balance.
SMSF Record-keeping requirements
Record-keeping is a key SMSF trustee responsibility. It is essential to stay organised and maintain accurate records to fulfil your legal obligations as an SMSF trustee.
Maintaining accurate records will also make it easier for your Accountant to determine the taxable and tax-exempt portions of any current and future benefits you may receive, as well as helping you avoid penalties related to non-compliance and possible ATO audits.
Knowing which records to keep and how long to keep them is a key responsibility for SMSF trustees.
Here are a few tips for keeping accurate SMSF records:
1. Changes to your Fund
You must notify the ATO of any changes to your SMSF fund within 28 days.
2. Your Investment Strategy
You need to regularly review your fund's investment strategy and record the reviews in your meeting minutes.
3. Accurate Accounting
Make sure you keep separate accounting records for each member that detail all activities that relate to them.
4. Rollovers & Contributions
Keep track of the type of contributions and any rollovers your fund receives.
5. Investment Transactions
Keep an accurate record of your investment transactions to track your fund's performance.
6. Keeping your Records
Financial documents need to be kept for at least 5 years, while trustee and membership-related documents need to be kept for at least 10. Additionally, there are some documents, such as the trust's deed and other set-up documents, that need to be kept for the lifetime of your SMSF.
SMSF Management can be a complex and time-consuming task
Managing SMSF records can be a complex and time-consuming task. Many SMSF trustees seek the assistance of professional accountants or SMSF specialists to ensure compliance with ATO regulations and efficient management of their funds. These experts provide valuable guidance on record keeping, taxation, and investment strategies, making the SMSF journey smoother and more secure. Remember, a well-kept SMSF is a step closer to a secure and comfortable retirement.
SMSF Services Tailored to Your Needs
If you need assistance with setting up or managing your fund, our SMSF specialists can offer a range of advisory and support services. Whether you are aiming to better manage your retirement investments, maximise tax advantages, or stay in line with continually changing regulations, our experienced team will guide you through the entire process. Contact Azure Group's SMSF specialists today.
To learn more about SMSF record-keeping requirements, the types of records that must be kept and for how long, you can also 🎥watch a quick video by the ATO here.
Related: ATO Scam Alert: Beware of Investment Scams targeting SMSFs
Have you noticed our #FridayExpertTips... here's one that relates to Superannuation
"Make sure any contributions you make before the end of financial year are within the contribution caps, so you don’t pay a penalty tax."
This article is intended to provide general information only, and is not to be regarded as legal or financial advice. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.