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Integrity, Innovation & Commitment

New rules for trustees of SMSFs

  • Tuesday, 01 January 2013 04:13

New regulations apply to self-managed super funds (SMSFs) from the 2012-2013 income year. They require trustees of SMSFs to: rules3

  • value the fund's assets at their market value for the purpose of preparing financial accounts and statements of the fund
  • consider insurance for their members as part of the fund's investment strategy
  • review the fund's investment strategy on a regular basis to ensure that it continues to reflect the purpose and circumstances of your fund and its members.

The obligation that you as a trustee of an SMSF are required to keep money and other assets of the fund separate from any money or assets held by you personally or by a standard employer-sponsor or an associated standard employer-sponsor is now a prescribed operating standard.

Trustees who fail to comply with the above requirements may be subject to penalties.

SMSF AUDITOR REGISTRATION REQUIREMENTS

From 1 July 2013 auditors will be required to be registered with (ASIC) to conduct SMSF audits. ASIC will accept applications online from 31 January 2013. Transitional arrangements for existing approved auditors will be available for those who apply with ASIC before 1 July 2013.

Auditors will need to meet a number of requirements set by ASIC to be registered as an approved SMSF auditor. These are:

  • hold a tertiary accounting qualification which includes an audit component or have successfully completed study in audit as part of a professional accounting body program
  • hold professional indemnity insurance
  • have 300 hours of SMSF audit experience in the three years prior to registration, subject to transitional arrangements
  • pass a competency exam
  • ability and agreement to meet ongoing obligations, including continuing professional development, professional indemnity insurance, compliance with auditing and assurance engagement standards, competency standards and independence principles.

WHAT THIS MEANS FOR SMSF TRUSTEES

From 1 July 2013, your SMSF auditor must be registered with ASIC and have a SMSF Auditor Number (SAN). You will be required to report the SAN on your SMSF annual returns for the 2012-2013 income year onwards. The SAN is a non-mandatory label in the 2011-2012 annual return.

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