Education

Comparing the total annual cost of running an SMSF against the fees currently paid, in dollars rather than only percentages, and including the value of time spent, gives a clearer picture.

Penalties for breaches fall on trustees, not on their accountants. Trustees are expected to understand their duties well enough to know whether the advice they receive is sound, and to demonstrate that the fund complies if the ATO asks a question.

The trustees hold and manage the fund'sAssetstogether for the benefit of the members, and the law expects them to act collectively and keep watch over how the fund is run as a whole.

These matters must genuinely be considered and reflect the actual circumstances of the fund and its members, rather than repeating generic wording.

An auditor checks that the strategy exists, is appropriate and has been reviewed, so a fund that cannot show any review over several years may attract questions.

A fund can have up to six members. Trustees can act as individual trustees, where every member is a trustee, or use a corporate trustee, where a company acts asTrusteeand each member is a director. Each structure carries different costs, paperwork and rules around …

The ATO's position is that any amount illegally accessed is included as income in the member's tax return, even if it is returned to the fund. The withdrawal is a completed event for tax purposes the moment it happens. Putting the money back does …