As a trustee of a self managed super fund (SMSF), you have certain responsibilities that you must adhere to for your SMSF to remain a complying fund that is eligible to receive favourable tax treatment.
You are responsible for running your SMSF and you cannot receive any remuneration for your trustee duties.
As a trustee of an SMSF you must:
- always act honestly
- exercise the same degree of care, skill and diligence as an ordinary prudent person in managing your SMSF
- act in the best interest of all your SMSF’s beneficiaries
- keep the SMSF’s assets and money separate from other money and assets, such as business and personal money and assets
- retain control over your SMSF
- develop and implement your SMSF’s investment strategy
- not enter into contracts or behave in a way that hinders trustees from properly performing their duties or powers, and
- allow beneficiaries access to certain information about the SMSF.
What happens if you fail in your trustee duties?
As a trustee of a self managed super fund, if you fail to act in accordance with the super and tax laws, you risk:
- your SMSF becoming non-complying and losing its tax concessions
- disqualification, removal or suspension as a trustee of the SMSF
- civil or criminal prosecution, and/or
- financial penalties.
If you fail to act in accordance with your SMSF trust deed, other affected members of the fund may take legal action against you.