SuperEasy Articles
Annual Administration: Reminder to SMSF Trustees

One of the most important obligations of the trustees of the fund is to organise the annual income tax and compliance returns. The return needs to be organised regardless when the fund was established in the financial year. Financial year in Australia starts on 1st of July and ends on 30th of June, and that means, that even if the fund was established on 28th of June, the fund must lodge an income tax return for that financial year.

    The usual mistakes trustees make when anticipating that the tax return doesn't need to be done are:
  • The fund was established at the end of the financial year,
  • The fund didn't have any assets in the financial year,
  • The fund didn't have any transactions in the financial year,
  • The fund didn't open a bank account,
  • The fund's position has not changed comparing to the previous financial year,
  • The fund is now in pension mode and it has obtained an actuarial certificate,
  • The fund is going to be wound down this year.

Once a fund has been established, fund's trustees must lodge every year the fund income tax and regulatory return, and must pay the annual $45 superannuation supervisory levy. Part of the annual tax return of a SMSF is to have the financial statement accounts and statements of the fund audited by an approved auditor. The annual tax return can only be lodged after the audit of the fund has been finalised.

Failing to lodge the regulatory return of the fund by the due date can result in penalties and or loss of the fund's compliance status.

This is a reminder to all superannuation funds' trustees to organise the annual administration of their superannuation funds for the financial year ended 30th of June 2004.

Please note the important cut-off date: 31st of October 2004 is the due date for the lodgment of 2004 income tax returns, unless the income tax return is done by your tax agent.

Contact your accountant or service provider today, regarding your fund's annual tax return!

If you don't have a service provider for your fund's annual administration, please visit SuperEasy web site and check out our offer by clicking the "Annual Administration of your SMSF" egg on the home page. Our annual administration, relating to the Tax Return and Audit of a complying SMSF is $1,095 GST inclusive. The price is fixed and includes up to 15 different investments* in the fund, and there is no limit on number of transactions. If the fund has additional investments, each additional Australian Investment will be charged at $44.00, GST inclusive, regardless of the number of transactions per that investment.
SuperEasy's definition of "Australian Investments" for the purpose of Fee Schedule, includes, but is not limited to, the following:

  • Australian Bank, Building Society Account or similar,
  • Australian Term Deposit or similar fixed interest security,
  • Australian Share Trading, Broker or similar trading account,
  • Shares/Units in entities listed on Australian Stock Exchange,
  • Shares/Units in non-listed entities resident in Australia,
  • Pensions (Allocated or Complying Pensions under the SMSF; Actuarial Certificates charged separately!),
  • Australian Life Insurance Policy.

Investments that are not defined as per the definition of "Australian Investments" as listed above will be charged according to the following rates contained in the Investment Table below:

Description GST Inc.
Each additional Australian Investment $44.00
Each additional Overseas Listed Investment on the Hong Kong, Singapore or USA Stock Exchanges $44.00
Each additional Overseas Listed Investment on any other foreign exchange $60.00
Each additional Overseas Listed Investment not listed on any foreign stock exchange $85.00
In-house Assets $220.00
Each Real Estate Agent Managed Real Estate Property $132.00
Each Self Managed Real Estate Property $176.00
Each plant or equipment leased to external parties $88.00
Superannuation Contributions Surcharge Forms prepared post Oct 31, per member of the fund. To avoid this charge please send us fund's relevant documentation before 11th of October 2004! $88.00
Defined Benefit Fund $240.00

* To count as one investment, each individual investment must be held under a single Chess sponsor, and, or (they may by issuer sponsored) One Share Holder ID Number. For example a fund that holds 2,000 Telstra shares in four lots of 500 shares, each with a different Share Holder ID Number, will be deemed to be four separate Australian Investments.

To get an idea how it works, visit our website and select Annual Administration of your fund. This application comes with an Admin Calculator, supported by the Information Panel that will explain exactly what we mean by certain type of "investment" and also, it will give you the exact price you would pay.

Administration Tips Relating to Trustees Duties

Record keeping requirements

SMSF trustees must keep the following records for a minimum of 5 years:
  • Accurate and accessible accounting records that explain the transactions and financial position of the fund,
  • An annual operating statement and an annual statement of the fund's financial position,
  • Copies of all lodged annual tax returns.
And the following records for a minimum of 10 years:
  • Minutes of trustees meetings and decisions,
  • Records of investment strategies,
  • Records of all changes of trustees or members,
  • Members' written consent to be appointed as trustees,
  • Copies of all reports given to trustees and members.

Trustees also need to keep an updated copy of the trust deed at all the time. The trust deed needs to reflect the relevant members/trustees of the fund!

Superannuation Surcharge

With the annual administration, SMSF trustees are also required to report all members details required for the ATO to determine whether members of the fund have a superannuation surcharge liability in a particular year. If a member needs to pay any surcharge liability, the ATO will notify the fund of the surcharge assessed for each member of the fund. The surcharge liability needs to be paid to the ATO within one month of receiving the assessment notice.

Paying Benefits

If a SMSF is paying benefits to its members, such as: superannuation pensions, annuities and ETPs , the trustees are required to report the information about these benefits to the Australian Tax Office within 14 days from the end of the month in which the payment was made.

To obtain more information how to meet administrative obligation imposed on self managed superannuation funds, please visit the Australian Taxation Office website or give them a call on 13 10 20.

First Published: 5 November 2004 - Copyright © SuperEasy Pty Ltd

This article is intended to be a factual analysis of past investment returns. It is not intended, nor is it to be regarded, as investment/securities advice. It does not take into account whether any particular investment or type of investment is suitable for your individual circumstances. It is strongly recommended that you seek professional advice before making any investment choice or decision.

SuperEasy Pty Ltd is not licensed to provide advice on investments, or legalities of the types of investments that you can have. We strongly recommend that you seek professional advice from an AFSL holder before making any investment choice or decision.