Once your SMSF is up and running, as an individual trustee of the fund or director of the corporate trustee, you're legally required to manage the compliance of your Self-Managed Super Fund (SMSF). An SMSF accountant plays a crucial role in assisting the trustee of the SMSF with managing their duties, ensuring the fund stays compliant. They handle key tasks like processing transactions, organising financial records, and ensuring compliance with ATO regulations, including lodging statutory returns and preparing for audits. Their expertise helps keep your fund compliant and running smoothly.

While recent regulatory changes have limited the advice accountants can offer, their role in SMSF setup, administration, and compliance remains essential. Many trustees now use technology for fund management, but the accountant’s guidance is still vital for navigating complex tax obligations and compliance requirements, helping trustees avoid grave penalites for running non-complying SMSFs.

If you need expert assistance with your SMSF, Causbrooks offers comprehensive services for setup, administration, and compliance. Schedule a complimentary consultation today.

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What does an SMSF accountant do?

Traditionally, an SMSF accountant focuses on processing past transactions within your Self Managed Super Fund (SMSF). They take the paperwork from the previous financial year and organise it for taxation and record-keeping purposes. Additionally, they provide SMSF administration support, including lodging statutory returns.

If you're new to running your Self Managed Super Fund, navigating your fund’s administration and preparing for the first tax return can feel overwhelming. Keeping track of the necessary paperwork throughout the year is crucial, as is understanding the varying deadlines for submitting your annual return, depending on your fund's age. By accessing the right SMSF experts and leveraging technology, you can efficiently manage your SMSF, ensuring compliance and making the most of your investments.

SMSF tax return obligations

Each year, Self-Managed Super Funds (SMSFs) are required to submit a tax return to the Australian Taxation Office (ATO). While this obligation is similar to that of other tax-paying entities, such as businesses or individuals, the process for SMSFs is can be quite intricate and time-consuming. The ATO enforces strict regulations to ensure that funds, member contributions, and investments comply with the law. Consequently, your SMSF must undergo an external audit before lodging its tax return.

Your SMSF accountant is essential in helping you meet these obligations. They can assist with having the audit prepared and lodging your SMSF tax return. There are two key dates for SMSF tax returns: 28th February for new SMSFs in their first year and 15th May for all other standard funds. These dates correspond to the preceding financial year, so timely preparation is crucial. Starting the process at the end of the financial year ensures ample time to compile and verify the necessary compliance documents for the independent auditor.

Meeting deadlines is vital to maintaining your fund's compliance. If the audit and tax return are not completed on time, the ATO may deregister your fund, preventing it from receiving contributions, even from your employer. Most SMSFs benefit from a lower tax rate of 15% when compliant. However, non-compliance results in all fund income being taxed at the highest marginal rate of 45%. Ensuring your fund’s compliance is a primary duty of your SMSF accountant, helping you avoid unnecessary penalties and excessive tax rates.

For more information, visit our SMSF Tax Return page.

Ensuring compliance to avoid excessive tax rates

Maintaining compliance with ATO regulations is crucial for Self-Managed Super Funds (SMSFs) to avoid unnecessary financial penalties. Your SMSF accountant plays a key role in ensuring that your fund adheres to these regulations. They guide you through the complex processes involved, from preparing for the mandatory external audit to lodging your tax return on time. By managing these tasks efficiently, your accountant helps you stay compliant and avoid the risks associated with non-compliance.

The importance of compliance cannot be overstated. If your SMSF fails to meet the ATO’s requirements, the consequences can be severe. Non-compliant funds face taxation at the highest marginal rate of 45%, compared to the lower rate of 15% for compliant funds. This significant difference can lead to substantial financial losses, making it essential to follow all regulations closely.

By working closely with your SMSF accountant, you can ensure that your fund remains in good standing with the ATO. This not only protects your investments from excessive taxation but also secures the long-term benefits of your super fund.

SMSF wind up process

Your SMSF accountant plays a crucial role in guiding you through the SMSF wind-up process, ensuring it is as smooth as possible during what might be a difficult time. They begin by reviewing your SMSF Deed to identify any specific requirements for closing the fund. Once all trustees have agreed and signed the necessary documents, your accountant will proceed with winding up the fund, which includes selling the fund’s assets in line with the Superannuation Industry (Supervision) Act 1993.

It’s important to note that once an SMSF is closed, it cannot be reactivated. If you wish to return to a self managed super fund in the future, you will need to go through a completely new SMSF setup.

How Caubrooks can assist with your SMSF setup

Setting up a Self-Managed Super Fund (SMSF) begins with choosing the right trustee structure, whether individual trustees or a corporate trustee. Each option offers specific benefits depending on your circumstances, such as the number of fund members and the desired level of asset protection. Our team at Caubrooks can guide you through the entire setup process, from establishing the trust deed to registering your fund with the Australian Taxation Office (ATO), ensuring it’s ready to receive contributions.

For more information, visit our SMSF Setup page.

Comprehensive SMSF setup and trustee structure 

Starting your own SMSF involves selecting an appropriate trustee structure, which could be either individual trustees or a corporate trustee (also called a trustee company). Each structure has its advantages, depending on your specific circumstances, such as the number of fund members and the level of asset protection required. Our team can guide you through the SMSF establishment process, including setting up the trust deed, choosing trustees, and registering with the Australian Taxation Office (ATO). We ensure your fund is correctly established to receive and accept contributions, both from members and employers. 

Investment strategy and compliance 

An effective investment strategy is vital for managing your fund assets responsibly. We can put you in touch with a financial planner who can help develop a strategy that aligns with your financial goals in compliance with superannuation laws. We manage the ongoing compliance obligations of your Self Managed Superannuation Fund, such as the annual audit, maintaining trustee minutes, and ensuring adherence to the fund’s governing rules. This helps safeguard your fund against non-compliance risks. 

Operational support and advice 

Once your SMSF is up and running, as an individual trustee of the fund or director of the corporate trustee, you're legally required to manage the compliance of the SMSF. This includes opening a bank account specifically for the fund, setting up an electronic service address for receiving electronic contributions, and handling all fund operations, including using the fund's bank account to pay expenses and making investment decisions. If a fund member dies, we can assist in executing binding death benefit nominations according to the trust deed. Our ongoing support and professional advice ensure your SMSF operates effectively, keeping your retirement planning on track and aligned with your best interests. 

About Causbrooks

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Disclaimer

Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.