Running an SMSFRunning a Self-Managed Superannuation Fund (SMSF) involves several important duties and responsibilities. Here are the key duties associated with managing an SMSF: |  |
| Compliance with superannuation laws: Ensure that the SMSF complies with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). This includes adhering to contribution limits, investment restrictions, reporting obligations, and administrative requirements. | Acting in the best interests of members: Act in the best interests of all SMSF members and make decisions that will maximise their retirement outcomes. This involves making investment decisions, reviewing performance, and considering the long-term goals and risk profiles of the members. | Formulating and reviewing the investment strategy: Develop and regularly review the SMSF's investment strategy. The strategy should consider the risk tolerance, return objectives, liquidity requirements, and diversification principles appropriate for the fund. | Managing fund assets: Manage the SMSF's assets prudently and in accordance with the law. This includes safeguarding the assets, diversifying investments, monitoring performance, and ensuring appropriate asset valuation. |
| Record-keeping and reporting: Maintain accurate and up-to-date records of the SMSF's transactions, financial statements, member contributions, and compliance documentation. Seek out Next Step Super to lodge the annual return with the Australian Taxation Office (ATO) and organise audit within the specified time frame. | Communication with members: Keep SMSF members informed about the fund's activities, financial performance, and significant changes that may affect their benefits or obligations. Provide regular updates and ensure transparency in communication. | Regular review of insurance coverage: Assess the insurance needs of SMSF members and regularly review the insurance policies held within the fund. Ensure that the coverage adequately protects the members and consider making changes as necessary. | Ongoing education: Stay up-to-date with changes in superannuation laws and Industry regulations |
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By fulfilling these duties,You can effectively manage an SMSF, ensure compliance with regulations, and work toward maximising the retirement outcomes for the fund members. It's essential to seek professional advice and stay informed about regulatory updates to meet your obligations as an SMSF trustee. To understand potential risks of running and maintaining an SMSF, please refer to the below disclosure: |  |