Section Summary
s17A – SMSF definition Has fewer than 5 members Individual trustees must also be members of the fund Each director of a corporate trustee must be a member of the fund Each member of the fund is a trustee or director of the corporate trustee. No member of the fund is an employee of another member of the fund, unless the members are relatives.
┬ás126K – disqualified person/s Must not knowingly become a trustee or director of a corporate trustee if disqualified under Section 126H
s103 – minutes and records Keep for 10 years all minutes of meetings.
s104A – trustee declaration All new trustees or directors of a corporate trustee must sign a declaration that he/she understands his or her duties as trustee (or director of a corporate trustee) of the SMSF. Must be signed with 21 days Must be signed by all new trustee/directors after 30 June 2007
s35C(2) – documents requested by the auditor If an auditor requests, in writing, a document that is relevant to the preparation of the SMSF’s reports, the trustee of the SMSF must provide the document to the auditor within 14 days.
r7.04 – the contribution standards Requirements for an SMSF to accept contributions from a member.
s65 – lending to related party No money of the SMSF is to be lent to a member, relative of a member or provide any financial assistance to a member or a relative of a member of the fund.
s82-s85 – in-house assets A fund is not able to hold more than 5% of its assets (at market value) in in-house assets. An in-house asset is: A loan to, or investment in, a related party of the fund An investment in a related trust of the fund An asset of the fund that is leased to a related party
s66 – related party acquisitions An SMSF can not purchase any assets off a member or relative of a member unless the asset is specifically allowed by the legislation. Such as listed securities purchased at market value.
s67 – borrowing An SMSF can not borrow money. Except for specifically allowed circumstances, such as a limited recourse borrowing arrangement under S67A.
s109 – non-arm’s length transactions All transactions must be dealt with on an arm’s length basis.
r4.09 – investment strategy All fund’s must have an investment strategy
r4.09A – separation of assets Assets of the fund must be maintained separately from the assets of the members.
r13.14 Charge over assets Trustees must not have given a charge over any assets of the fund.
r13.18AA – collectable/personal use assets Any collectibles/personal use assets must have documentation showing insurance and storage conditions have been met
r6.17 – benefit payment standards Benefit payments must have been made
r5.08 – maintaining minimum benefits If fund is in pension mode, the fund is required to make a minimum level of benefits.
This is not an exhaustive list of all sections or legislative requirements of an SMSF. It is a quick reference guide for the sections which could lead to a reportable audit report.