SMSF administration may seem like a daunting task, but it is important for the health and well-being of your self-managed super fund. Here are three reasons why you should make sure that your SMSF is administered properly:
To ensure compliance with regulations, it is important that you maintain proper administration of your SMSF. This means keeping up-to-date records and investing within the parameters set out by the Australian Tax Office (ATO). This includes making sure any contributions are made in accordance with the caps set by the ATO and ensuring all paperwork is properly completed. By staying compliant, you will avoid penalties or other sanctions imposed by the ATO.
To protect the investments of fund members, it is essential to keep accurate records and to make sure any decisions taken regarding investments align with each member’s individual risk appetite. Accurately recording transactions will also help protect members from being charged unnecessary fees or charges, as well as being subject to inappropriate investments.
Finally, it is important to be aware of the ongoing regulatory requirements relevant to self-managed super funds. This can include ensuring that the fund complies with all applicable laws and regulations, including those relating to taxation, insurance and auditing. It is also essential that trustees ensure they receive regular advice on how best to administer their superannuation funds. Failure to do so may lead to costly mistakes or even legal action.
By following these guidelines, trustees will be able to ensure their self-managed super fund is run effectively and compliantly while providing members with the peace of mind that their investment is safe and secure. smsf administration wollongong.
