The Australian Taxation Office (ATO) has issued new guidance for trustees who have recently established a self-managed super fund (SMSF). Trustees are reminded that several compliance steps must be completed by 31 October.
While accountants often provide important administrative support, trustees remain personally and legally responsible for compliance with the Superannuation Industry (Supervision) Act 1993 (“SIS Act”) and regulations. At W & G Lawyers, we work closely with trustees and their accountants to ensure these obligations are understood and properly managed.
Trustee Legal Duties
Under section 52B of the SIS Act, SMSF trustees must:
- Act honestly and in good faith,
- Exercise care, skill and diligence,
- Act in the best interests of fund members, and
- Keep SMSF assets separate from personal or business assets.
These duties apply at all times, even where day-to-day administration is delegated to an accountant.
SMSF Annual Return and Audit
Every year, trustees are required to lodge an SMSF Annual Return (SAR) with the ATO. Lodgement requires:
- Fund financial statements,
- An independent auditor’s report, and
- Accurate details of contributions, income, and assets.
The SAR cannot be lodged without the auditor’s report. Importantly:
- The auditor must be appointed at least 45 days before lodgement,
- The auditor must be independent and ASIC-registered, and
- Trustees must provide accurate financial accounts and supporting evidence of asset values.
We regularly assist clients to ensure auditors are appointed on time and compliance deadlines are met.
Financial Accounts and Asset Valuations
SMSF financial statements must reflect market value for all assets each year. Trustees must hold objective, reliable evidence for valuations—particularly for real property, unlisted shares, and non-standard assets.
Auditors may request this evidence, and trustees are legally required to provide it within 14 days. Even when accountants prepare valuations, trustees remain ultimately responsible for ensuring compliance.
Why Legal Oversight Matters
Engaging legal oversight alongside accounting support ensures:
- Trustee duties are fully understood and complied with,
- Auditor independence and timing are properly managed,
- Breaches are addressed quickly to reduce regulatory risk, and
- Trustees are better protected from potential personal liability.
How W & G Lawyers Can Help
We support SMSF trustees by:
- Advising on SIS Act trustee duties,
- Ensuring proper governance and record-keeping,
- Coordinating auditor appointments and liaising with accountants, and
- Assisting with ATO compliance queries or breach rectification.
Next Step: If you have recently established an SMSF, contact us early. We will work directly with your accountant to ensure all legal and compliance obligations are met before the 31 October deadline.
Contact W & G Lawyers today for tailored SMSF legal advice.
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Useful ATO Resources
For further information, trustees may wish to review the following ATO resources:
Disclaimer
This article is intended to provide general information only and does not constitute legal or financial advice. The content has been prepared without taking into account your personal objectives, financial situation, or needs. You should not act on the information provided without first obtaining professional advice specific to your circumstances. While every effort has been made to ensure the accuracy of the information, W & G Lawyers accepts no responsibility for any errors or omissions. To the extent permitted by law, W & G Lawyers excludes all liability for any loss or damage arising from reliance on this publication.