This module looks at the steps to establish a self-managed superannuation fund (SMSF) as a regulated superannuation fund in order to become a complying superannuation fund entitled to tax concessions. The module identifies the trustee covenants that all trustees must abide by and are deemed to be incorporated into the governing rules of the fund whether they are actually stated or not.
In the first significant link between the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) and the Income Tax Assessment Act 1997 (Cth) (ITAA 97), this topic reviews the definition of an Australian superannuation fund which is a definition that an SMSF is required to satisfy if it is to be a complying superannuation fund.
Finally, the module covers the fund’s responsibilities that must be outsourced and identifies the penalty regime that applies to all SMSFs for breaches of the SIS Act.
On completing this module, you should be able to:
- identify some of the considered advantages and disadvantages of having an SMSF
- list the key regulatory steps required to establish an SMSF
- identify the key trustee covenants and their associated regulations to ensure an SMSF meets its obligations with regards to assets
and investment strategies
- describe the characteristics of an Australian superannuation fund
- ensure an SMSF continues to satisfy the definition of an Australian superannuation fund
- discuss the various penalties that may be imposed on SMSF trustees for a breach of the SIS Act.
SMSF Advice - Establishing an SMSF