With Control Comes Responsibility

In an SMSF, the trustees have control over the retirement savings of the fund members. It is essential that trustees not only invest the SMSF assets in an appropriate way, but also comply with all the obligations and responsibilities imposed on them by legislation.

The Australian Taxation Office requires all new trustees of SMSFs to complete a trustee declaration. This document explains the ‘sole purpose’ test, lists the trustee’s duties, details investment restrictions, and sets out contribution and administrative requirements.

Trustees are required to sign an acknowledgement confirming they understand the requirements of being a trustee, as outlined in the declaration, as part of the process of establishing a fund.

ATO Guidance and Trustee Obligations

The Australian Taxation Office has published a series of documents on its website, with a landing page titled Self-managed super funds.

These materials set out the ATO’s guidance and expectations across many areas of SMSF establishment and operation. Trustees are expected to understand and comply with this guidance as part of meeting their ongoing responsibilities.