Self-managed super funds: Top tips from the ATO
Posted on: October 29, 2017, by : Affiliate Program

As a trustee of a self managed super fund, you can manage your investments to retire and make your own investment choices.

As a trustee and a member of the SMSF, you can have complete control over how to invest your old age savings if you want to return property, works or artwork and collections,

If you plan to create an SMSF service, your responsibilities as trustees include developing an investment strategy, acceptance of contributions, and payment of benefits.

The Australian Tax Office (ATO) is the body of the self managed super funds, applying most of the rules and restrictions that apply to the investment strategy. This morning, ATO’s Peter Ioannidis provided an overview of SMSF for administrators.

Some suggestions to make sure the fund meets:


As trustee, you need to make sure that the only purpose of your SMSF is to provide your members with the pension. Even if you use a professional to perform certain activities in your name, you must always follow the super and fiscal laws to protect the activities of your members. To take advantage of all the tax advantages offered by SMSF, you have to undergo a single objective test.

Investment decisions should be based on the increase in your fund’s profit. You have to consider the issue of diversification, risk and probable return of your assets. You must also consider the needs and circumstances of your members, even if you are the only member. For example, if you are approaching the retirement age, you can change the combination of assets to include low-risk and low-income investments.


Since post-retirement benefits are the sole purpose of your “self managed super fund”, you must ensure that you do not use the daily allowance fund or fine a fine of up to $ 220,000 or five years in prison. Fiduciaries are forbidden to use their funds to pay bills, training or any other investment.

As a trustee, it is forbidden to withdraw money from SMSF before retirement (with some exceptions), and all transactions made with your SMSF must be “at your fingertips”. Directors must create and maintain investment on a commercial basis, while the purchase and sale prices of fund assets must always reflect the true market value.


The fund is forbidden to provide money to a member of the fund or to a member of the member. The definition of the parent is rather broad – they can be brothers, sisters, parents, children, and extended family members. The definition also applies to the spouse of all members of the family. That means you cannot borrow money from your SMSF to your mother-in-law.

It is also forbidden for the SMSF to provide financial assistance to a member or parent directly or indirectly. This means that you cannot use the self managed super funds as a guarantee for your child’s mortgage.

Ioannidis gave an example of husband and wife who were administrators of their SMSF. Their SMSF sold its property but this property was not paid because the sales contract created a loan between the fund and the buyers.


As caregivers for SMSF, you have an annual liability circle. You must update your accounts and evaluate assets at their current market value at least once a year. You have to prepare budgets, prepare an annual report and declare your contributions, although no contributions have been made this year. You will also need to submit a tax return each year from the year that you created your fund for each member. Most of these tasks can be performed by an accountant, but is responsible for creating and publishing with ATO.

The ATO also requires an analysis of your “self managed super fund” each year, performed by an authorized SMSF auditor registered with the ASIC and has an SMSF listener. The auditor may not be a trustee member of your fund or accountant who prepares your other budgets. You will also need to make sure that you have appointed a sufficient auditor to perform an analysis and present it.