Key takeaways
- Breaking the year into start, ongoing and year-end tasks keeps a fund on track.
- Reviewing the investment strategy and minuting it is an annual must-do.
- Ongoing record keeping makes the year-end audit far easier.
- Year end is about pensions, contributions, valuations and getting ready for the audit.
The trustees who find SMSF compliance painless are not the ones with the best memory, they are the ones with a rhythm. Breaking the year into a few simple checklists turns a daunting set of obligations into a series of small, manageable tasks. Use these alongside the annual compliance calendar.
Start of the year
- Review and, if needed, update the investment strategy, and minute the review.
- Confirm any pensions are documented and the year's minimum payment is planned.
- Note your contribution plans against the current caps.
- Check insurance arrangements still suit the members.
Ongoing through the year
- Reconcile the fund's bank account and file documents as transactions happen.
- Keep contributions, rollovers and benefit payments within the rules and caps.
- Report pension events through TBAR as required.
- Minute significant decisions, such as buying a major asset.
- Keep fund assets clearly in the fund's name, separate from personal assets.
Approaching year end
- Pay at least the minimum pension by 30 June.
- Make sure planned contributions are received by the fund by 30 June.
- Obtain market valuations for the fund's assets.
- Gather the records the auditor will need: statements, contracts, valuations and minutes.
After year end
- Have the financial statements prepared and the fund independently audited.
- Lodge the SMSF annual return and pay any tax and the ATO levy.
- Action any points the auditor raised.
None of these tasks is difficult on its own. The value is in doing them on a steady rhythm rather than in a year-end rush. If you would rather not carry the calendar yourself, this is exactly what an SMSF administrator and accountant manage on your behalf.
Frequently asked questions
- What should an SMSF trustee do each year?
- Review and minute the investment strategy, manage contributions and pensions within the rules, keep records as you go, value assets at year end, pay the minimum pension by 30 June, then complete the audit and lodge the annual return.
- What is the single most useful trustee habit?
- Reconciling the bank account and filing documents as transactions happen, rather than at year end. Funds that keep records continuously find the annual audit quick and low-stress.
- Can someone else handle these tasks for me?
- Yes. An SMSF administrator and accountant can manage the record keeping, reporting, valuations and audit coordination on your behalf, while the legal responsibility remains with you as trustee.
