Importance of SMSF Audit

A self-managed super fund (SMSF) is a form of trust. Its sole purpose is to provide income to retired members or a death benefit. A tax file number (TFN) and Australian business number (ABN) are mandatory for an SMSF to have an account. Like the retail super fund, the members transfer their contributions to the bank account.

SMSF Setup should be done correctly as this fund would be eligible for tax concessions and could also receive and contribute to the members of the fund.

As a member of the fund, care should be taken for conducting a proper SMSF Audit yearly. The fund amount should be invested in proper places to gain maximum returns with safety as priority. The investment policies can be discussed with a financial advisor who could formulate a strategy.

To setup an SMSF, one needs to:

• Appoint professionals to help in setting up of fund
• Choosing of Individual trustees and corporate trustees
• Appointment of trustees
• Creation of trust and trust deed
• Checking the fund is an Australian super fund
• Registration of fund and getting an ABN
• Setting up a bank account
• Getting an ‘electronic service address’.
• Preparation of exit strategy

SMSFs have strict lodgment and administrative obligations which require attention. Copies of all records, minutes of trustee decisions and annual financial statements should be maintained. An SMSF should file an annual tax return and the financial statements should also be audited by an approved auditor.

Anyone 18 years of age and over can be a trustee of a superannuation fund. People who are under legal disability cannot be a trustee.

An individual who cannot be a trustee is anyone who is:

• convicted of an offence
• insolvent under administration
• charged as bankrupt
• disqualified as regulator

Follow the basic rules of SMSF to be safe and provide safety for your employees.