Horizon Accountants & Advisory: our role is to ensure YOUR Self-Managed Superfunds (SMSF)
transactions have been recorded accurately &
compliance requirements have been met.



SMSF Compliance

SMSF compliance is an important aspect of running your own self-managed superfund.
The rules for establishing & running an SMSF are different to other entities.
Including recording and reporting responsibilities, administrative requirements and managing tax reporting and payment obligations.
Investing super money must follow special rules about SMSF investment.
Pensions require minimum pension payment to be paid annually.

Our core areas of capability include:

SMSF Services
✔ Compliance Administration & Taxation ✔ Tax Planning Strategies ✔ Investment Choices ✔ Audit ✔ Setup

What is a Self-Managed Super fund (SMSF)?

An SMSF is a private superannuation fund, regulated by the Australian Taxation Office (ATO)
that you manage yourself.
All members must be trustees (or directors if there is a corporate trustee)
who are responsible for decisions made about the fund and for complying with relevant laws.



Benefits of Self-Managed Super Funds (SMSF)

✔ Greater control & visibility over your investments
✔ Flexibility to implement tax planning strategies
✔ Option to hold your business premises
✔ Greater investment choice
✔ Pooling of family assets
✔ Flexible Estate Planning



What can I buy in my SMSF?

A fund’s primary purpose is to pay retirement benefits to its members
all regulations are founded on this principle.
As a general rule if the investment does not provide for a future benefit for members it would not be allowed.
It must also be allowed in your SMSF’s trust deed
ie. the document creating & setting out the conditions of operation of the SMSF

Some general examples:
🗶 Personal assets
eg. car, house, personal toys like a boat, jetski, plane
🗶 Personal expenses
✔ Investments in cash, bonds, managed funds, shares etc
✔ Investment in property (although there are strict rules)
✔ Collectibles (although there are strict rules)



Should YOU have a Self-Managed Super Fund?

Some questions to consider:
Q: Do you & the other members of the fund have a combined $250,000 in superannuation savings to begin the fund?
Q: Do you have strong investment knowledge or would you like someone to suggest investment strategy?
Q: Are you willing to learn & stay abreast of regulatory changes?

If you answered yes to all the questions above, an SMSF may be suitable for you to consider.



What are the penalties for non compliance with the super laws?

The ATO states that their main focus is to encourage SMSF trustees to comply with the super laws.
However, the penalties for SMSF trustees who have not complied with the super laws can be severe and can include;
Allowing the SMSF to wind up
Disqualification of a trustee
Notice of non-compliance
Freezing an SMSF’s assets
Enforceable undertaking
Civil & Criminal Penalties
Administrative penalties
Rectification direction
Education direction



What do the various Government bodies do?

Australian Taxation Office (ATO) - administer the relevant super laws for SMSFs
Australian Securities & Investments Commission (ASIC) - regulates financial services to protect consumers and registers SMSF auditors
Department of Human Services (DHA) - assesses applications for early release of super on compassionate grounds.



Does an SMSF need an audit every year?

Yes.
The SMSF audit involves a review of your fund and the strategies and transactions during the year
to ensure financial statements are fairly presented and superannuation rules are complied with.



Who can audit my SMSF?

Your SMSF can only be audited by an approved SMSF auditor.



Can my Accountant give me advice on an SMSF?

Your Accountant can provide advice on administrative tasks
and provide factual information about investments and strategies
BUT
On 1 July 2016, the rules changed
Accountants are now required to be licenced
in the same way, as Financial Advisers to provide financial advice like:

⮚ Setting an SMSF
⮚ Suitability of investment product or strategy for an SMSF

(Question to ask your Accountant: Are you RG146 licensed
ie. Licensed to give more than administrative task advice.)



Contact us for a free no obligation chat about how
we may be able to help YOU