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:
1. Always act honestly
2. Exercise the same degree of care, skill and diligence as an ordinary, prudent person in managing your SMSF.
3. Act in the best interest of all your SMSF's beneficiaries.
4. Keep the SMSF's assets and money separate from other money and assets, such as business and personal money and assets.
5. Retail control over your SMSF
6. Develop and implement your SMSF investment strategy
7. Not enter into contracts or behave in a way that hinders trustees from properly performing their duties of powers, and
8. Allow beneficiaries access to certain information about the SMSF
What happens if you fail in your trustee duities ?
As a Trustee of a self managed super fund, if you fail to act in accordance with the super and tax laws, you risk:
1. your SMSF becoming non-complying and losing it's tax concessions
2. disqualification, removal or suspension as a trustee of the SMSF
3. Civil or criminal prosecution , and / or
4. financial penalties.
Learn more about SMSF Trustee Responsibilities here.