Your legal obligations when running a SMSF
by Wealth Know How in Retirement
This video looks at the duties, obligations and responsibilities for running a SMSF. James Dunn will walk you through some key legal considerations to keep in mind for your SMSF and sounds a warning about the risks of not complying. He also explains how important it is to have a well-defined investment strategy that covers all the bases and must be reviewed regularly.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 17 Jan 14
-
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healt...
Duration 02:31
-
-
This video looks at the duties, obligations and responsibilities for running a SMSF. James Dunn will walk you through some key legal considerations to keep in mind for your SMSF and sounds a warning about the risks of not complying. He also explains how important it is to have a well-defined investment strategy that covers all the bases and must be reviewed regularly.
Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
With the benefits of an SMSF comes plenty of responsibility. The regulations governing SMSFs are strictly enforced – and there are potentially severe penalties if you break the rules. If a fund is not administered properly and loses its status as a ‘complying’ fund, it could be taxed at the top marginal tax rate of 46.5%. The trustees could even be fined.
The fund must have an investment strategy that covers what it can own, its liabilities, risk and return, diversification, liquidity and insurance cover for members. In considering risk, the fund has to look at the age of the members, when they plan to retire, and match its portfolio to those factors. The investment strategy must be reviewed regularly.
Trustees must sign off that they understand (end ensure) that member benefits are only withdrawn when permitted by the super laws. They have to show that they understand that the assets of the super fund must be kept separate from their personal assets.
A SMSF is required each year to have a set of accounts prepared, it is required to be audited and a tax return for the fund must be lodged. Typically that will mean that your accountant will prepare the accounts, and the accountant will have arranged an auditor – the accountant that prepares returns cannot also do the audit.
When running an SMSF, your legal obligations are significant. It’s wisest to use professional assistance.