Understanding SMSF trustee responsibilities

Self-managed super fund (SMSF) trustees have onerous duties and responsibilities in relation to the management of their fund.

An SMSF trustee primarily needs to ensure the fund is properly managed for the benefit of members for their retirement.

All trustees must ensure the fund assets are held in trust and invested on behalf of the members. Trustees need to ensure their fund complies with all super rules including super laws and the fund’s trust deed.

Trustees must regularly review and update the fund’s trust deed and investment strategy in accordance with the law and the needs of the SMSF’s members.

Another responsibility is to accept contributions and paying benefits (income streams and lump sums) in accordance with super laws and the fund’s trust deed. Trustees must also advise the Tax Office of any changes in trustees, directors or members within 28 days of the change taking place.

SMSF trustees also have the duty of undertaking various administrative tasks such as lodging annual returns and record-keeping, as well as ensuring an approved SMSF auditor is appointed for each income year.

Where a conflict arises between your wishes as a member and your legal responsibilities as a trustee, you must comply with your trustee obligations. For example, if a relationship breakdown occurs between members, you must continue to act in the best interest of all members at all times and in accordance to the trust deed and with super laws.

It is also critical to keep fund assets (including money) separate from your personal and business assets. Fund assets should be solely used for fund purposes.

Finally, trustees are reminded that member benefits (money or other assets) cannot be accessed earlier than what is legally permitted (generally, until a member reaches preservation age). Member benefits can only be accessed in very limited circumstances, i.e., severe financial hardship and so on.

Remember, contravention of any of the super laws can result in significant penalties, including fines and jail terms.

Fuel tax credits – rate change

On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels.

Fuel tax credit rates change regularly – they are indexed twice a year, in February and August, in line with the consumer price index (CPI).

Below are the rates for fuel acquired from 1 August 2017 to 31 January 2018.

Claims for packaging or supplying fuels can use the ‘all other business uses’ rate for the appropriate eligible fuel type.

For businesses that claim less than $10,000 in fuel tax credits in a year, to simplify your claim use the rate that applies at the end of the BAS period.

Fuel tax credits – rate change

On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels.

Fuel tax credit rates change regularly – they are indexed twice a year, in February and August, in line with the consumer price index (CPI).

Below are the rates for fuel acquired from 1 August 2017 to 31 January 2018.

Claims for packaging or supplying fuels can use the ‘all other business uses’ rate for the appropriate eligible fuel type.

For businesses that claim less than $10,000 in fuel tax credits in a year, to simplify your claim use the rate that applies at the end of the BAS period.

Fuel tax credits – rate change

On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels.

Fuel tax credit rates change regularly – they are indexed twice a year, in February and August, in line with the consumer price index (CPI).

Below are the rates for fuel acquired from 1 August 2017 to 31 January 2018.

Claims for packaging or supplying fuels can use the ‘all other business uses’ rate for the appropriate eligible fuel type.

For businesses that claim less than $10,000 in fuel tax credits in a year, to simplify your claim use the rate that applies at the end of the BAS period.

ATO targeting SMSF non-compliance

The Tax Office is warning SMSF trustees that they will be contacting SMSFs that have not regularly complied with their lodgment obligations.

The ATO is reminding trustees that lodging an SMSF annual return is an obligation and failure to do so is a breach of super laws.

To avoid penalties, the Tax Office is urging SMSF trustees to bring their lodgments up to date as soon as possible.

Trustees who cannot meet any deadlines will risk becoming disqualified as a trustee for persistent non-lodgment, their SMSF may be made non-compliant and the ATO will raise default assessments.

ATO targeting SMSF non-compliance

The Tax Office is warning SMSF trustees that they will be contacting SMSFs that have not regularly complied with their lodgment obligations.

The ATO is reminding trustees that lodging an SMSF annual return is an obligation and failure to do so is a breach of super laws.

To avoid penalties, the Tax Office is urging SMSF trustees to bring their lodgments up to date as soon as possible.

Trustees who cannot meet any deadlines will risk becoming disqualified as a trustee for persistent non-lodgment, their SMSF may be made non-compliant and the ATO will raise default assessments.

ATO targeting SMSF non-compliance

The Tax Office is warning SMSF trustees that they will be contacting SMSFs that have not regularly complied with their lodgment obligations.

The ATO is reminding trustees that lodging an SMSF annual return is an obligation and failure to do so is a breach of super laws.

To avoid penalties, the Tax Office is urging SMSF trustees to bring their lodgments up to date as soon as possible.

Trustees who cannot meet any deadlines will risk becoming disqualified as a trustee for persistent non-lodgment, their SMSF may be made non-compliant and the ATO will raise default assessments.

Lodge nil BAS in advance

Activity statements generally issue from the ATO by the end of the month but in some circumstances they can be generated early.

Business owners can access activity statements early in the following cases:

• your business has ceased
• you will be travelling and will not be able to obtain your activity statement if generated under normal bulk process
• your entity is under some form of administration
• if you are going to be absent from your place of business before the end of the reporting period and the business will not be trading during that period
• you are a short-term visitor, i.e., an entertainer or sportsperson and will be leaving the country before generation of the activity statement

Quarterly clients who have elected to report and pay monthly are not eligible to lodge activity statements in advance.

All non-elected monthly, quarterly and annual lodgers can access activity statements early if they meet the following requirements:

• meeting the lodgment and payment due dates under the normal bulk processes and time frames will cause difficulties
• you have not had an active deferred goods and services tax (DGST) role during the reporting period the request relates to
• it is not practical or possible for you to find alternative lodgment arrangements and you are either a June balancer or substituted accounting period (SAP) balancer and requesting early generation of an annual Form I only for (PAYGW ) (SAP) balancer and are requesting early generation of an annual Form I only for PAYGW – go to view the substituted accounting period status.

Contact our office if you require assistance with the early generation of activity statements for your business.

Lodge nil BAS in advance

Activity statements generally issue from the ATO by the end of the month but in some circumstances they can be generated early.

Business owners can access activity statements early in the following cases:

• your business has ceased
• you will be travelling and will not be able to obtain your activity statement if generated under normal bulk process
• your entity is under some form of administration
• if you are going to be absent from your place of business before the end of the reporting period and the business will not be trading during that period
• you are a short-term visitor, i.e., an entertainer or sportsperson and will be leaving the country before generation of the activity statement

Quarterly clients who have elected to report and pay monthly are not eligible to lodge activity statements in advance.

All non-elected monthly, quarterly and annual lodgers can access activity statements early if they meet the following requirements:

• meeting the lodgment and payment due dates under the normal bulk processes and time frames will cause difficulties
• you have not had an active deferred goods and services tax (DGST) role during the reporting period the request relates to
• it is not practical or possible for you to find alternative lodgment arrangements and you are either a June balancer or substituted accounting period (SAP) balancer and requesting early generation of an annual Form I only for (PAYGW ) (SAP) balancer and are requesting early generation of an annual Form I only for PAYGW – go to view the substituted accounting period status.

Contact our office if you require assistance with the early generation of activity statements for your business.

Lodge nil BAS in advance

Activity statements generally issue from the ATO by the end of the month but in some circumstances they can be generated early.

Business owners can access activity statements early in the following cases:

• your business has ceased
• you will be travelling and will not be able to obtain your activity statement if generated under normal bulk process
• your entity is under some form of administration
• if you are going to be absent from your place of business before the end of the reporting period and the business will not be trading during that period
• you are a short-term visitor, i.e., an entertainer or sportsperson and will be leaving the country before generation of the activity statement

Quarterly clients who have elected to report and pay monthly are not eligible to lodge activity statements in advance.

All non-elected monthly, quarterly and annual lodgers can access activity statements early if they meet the following requirements:

• meeting the lodgment and payment due dates under the normal bulk processes and time frames will cause difficulties
• you have not had an active deferred goods and services tax (DGST) role during the reporting period the request relates to
• it is not practical or possible for you to find alternative lodgment arrangements and you are either a June balancer or substituted accounting period (SAP) balancer and requesting early generation of an annual Form I only for (PAYGW ) (SAP) balancer and are requesting early generation of an annual Form I only for PAYGW – go to view the substituted accounting period status.

Contact our office if you require assistance with the early generation of activity statements for your business.