Trustees Dos and Don’ts

Dos

• Appoint a registered SMSF professional to help with the set up, administration, management and compliance of the fund
• Establish your SMSF for the sole purpose of providing benefits to the members upon retirement, reaching a prescribed age or by meeting a condition of release
• Ensure your fund has 4 or less members and each member of the fund is a trustee or a director of the trustee company
• Make sure all trustees are not disqualified and meet all eligibility requirements
• Ensure all in-house assets rules are adhered to and do not exceed the 5% limit
• Hold all personal assets separately from the SMSF’s assets
• Comply with and meet the requirements of the SIS Act
• Ensure your fund is independently audited each year by a ASIC registered and approved SMSF auditor

Don’ts

• Do not borrow any money from the fund (except in limited circumstances)
• Do not lend or provide financial assistance to another party, friends or relatives
• Do not acquire assets from related parties of the fund subject to the exceptions
• Sell or purchase an asset on an arm’s length basis – less than market value

Liability limited by a scheme approved under Professional Standards Legislation