SMSF Annual Compliance Guide
- Editorial Team
- Aug 15
- 3 min read
Updated: Oct 29
Operating a self-managed superannuation fund (SMSF) requires careful attention to regulatory obligations, sound financial management, and robust record-keeping.
Trustees must ensure the fund remains compliant with the Superannuation Industry (Supervision) Act 1993 (SIS Act), the fund’s Trust Deed, and all relevant requirements from the Australian Taxation Office (ATO), ASIC, and other regulatory agencies. Maintaining proper administration safeguards tax concessions and supports efficient fund management.
Key Regulatory Oversight for SMSFs
Australian Taxation Office (ATO)
The ATO is the primary regulator of SMSFs. Each year, trustees must confirm their fund’s continued compliance with SIS Act requirements. Core annual tasks include preparing and lodging the SMSF Annual Return (SAR), which combines financial, compliance, and regulatory reporting, including income tax, capital gains tax, and contributions reporting.
SMSFs must undergo an independent annual audit by an ASIC-approved SMSF auditor before lodging the SAR. The audit reviews both the fund’s financial statements and adherence to SIS Act provisions.
Trustees must report member contributions accurately to avoid excess contributions tax and ensure each fund asset is valued at its market value as of 30 June each year. Independent property valuations are not required annually; they are only necessary if there has been a material change in value or if requested by the auditor or ATO.For SMSFs in pension phase, trustees must ensure the required minimum pension payments are made by 30 June annually.
ASIC (Australian Securities and Investments Commission)
SMSFs with a corporate trustee are subject to ASIC regulations. Corporate trustees must pay an annual review fee, with a reduced rate if the company acts solely as a superannuation trustee. Each director must hold a Director Identification Number (DIN), a one-off requirement that must remain current. Any changes to directors or company details must be reported to ASIC within 28 days.
APRA (Australian Prudential Regulation Authority)
APRA does not directly regulate SMSFs but sets standards for industry and retail super funds that inform the broader superannuation framework and guidance enforced by the ATO.
AUSTRAC (Anti-Money Laundering and Counter-Terrorism Financing)
SMSFs themselves are not direct AUSTRAC reporting entities and do not have formal AML/CTF obligations. However, banks, solicitors, and other third parties involved in SMSF transactions may trigger AUSTRAC reporting requirements if transactions involve property, international transfers, or suspicious activities. Trustees must ensure all transactions are transparent and conducted on an arm’s length basis.
Ongoing Trustee Responsibilities
Trustees must maintain compliance throughout the year, beyond annual lodgements. All investments and leases involving related parties must be arm’s length and on commercial terms. Regular reviews of the investment strategy are required to consider members’ retirement goals, risk tolerance, insurance, and liquidity needs.
SMSFs must keep accurate accounting records for at least five years. Trustee meeting minutes, investment strategies, and changes in trustees must be retained for at least ten years, while trustee declarations are to be kept for at least five years.
The Sole Purpose Test requires that all fund assets are used exclusively for the members’ retirement benefits, never for personal use.
SMSF Annual Compliance Checklist
Ensure all operations comply with the Trust Deed and SIS Act
Prepare and lodge the SMSF Annual Return (SAR) with the ATO
Organise and complete the annual independent audit
Report member contributions accurately
Value assets at market value annually; obtain independent property appraisals only if required
Make minimum pension payments by 30 June if in pension phase
Maintain arm’s length transactions and related-party compliance
Review and update the investment strategy regularly
Keep accounting records for at least five years
Retain trustee minutes, investment strategies, and changes for at least ten years; keep trustee declarations for at least five years
Pay any applicable ASIC annual review fee for corporate trustees
Ensure directors have a DIN, notifying ASIC of changes within 28 days
Monitor and implement legislative changes affecting SMSF compliance
Summary
Strict adherence to annual compliance and administration protects the SMSF’s tax concessions, minimises the risk of penalties, and ensures the fund remains effective for all members. Trustees who follow these requirements are better positioned to safeguard members’ retirement benefits.
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DISCLAIMER: This article is provided for general information only. While care has been taken, no guarantee is given as to the accuracy, completeness, or timeliness of the content. It does not constitute financial, accounting, legal, or SMSF advice and does not consider your personal circumstances. You should seek independent, licensed professional advice before making decisions about SMSFs, compliance, or investments.
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