Thinking of setting up an SMSF? Self Managed Super Funds give you freedom over your retirement savings—but that freedom comes with serious responsibility. As a trustee, you must follow self managed super funds rules carefully or risk penalties and losing valuable tax concessions.

Here’s what you need to know to protect your super and stay compliant.

Your Role as an SMSF Trustee

As a trustee, you must:

• Act in members’ best interests
• Follow the self managed super funds rules and sign an ATO Trustee declaration that affirms your understanding of these rules
• Actively manage your SMSF
• Arrange an annual audit prior to lodgement of the ITR

Even if you use professionals to assist, you remain legally responsible.

Core Self Managed Super Funds Rules

1. Sole Purpose Test
Your SMSF must be maintained solely for retirement benefits to the members ot their dependents

2. Separation of Assets
SMSF money and personal on non super assets must never be mixed—this is a core rule.

3. Investment Restrictions
SMSFs can’t lend money to members or relatives or buy assets from related parties unless permitted under specific self managed super funds rules.

4. Annual Compliance Obligations
You must lodge annual returns, keep records, and complete independent audits.

5. Record Keeping
The rules require detailed documentation for at least five years.