EOFY and SMSFs

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It’s that time of the year when SMSF trustees need to address important duties, such as investment planning (to keep the fund members happy) and June 30 administration of the fund (to keep the ATO happy).

That second task might seem a matter for the fund’s technical advisers, but trustees should never forget that they, personally, are ultimately responsible to comply with all requirements. If you haven’t read material from the ATO about trustees’ responsibilities recently, it might be useful to re-discover what’s required.

The sole purpose

This might also remind trustees that their fund’s first and major obligation is to provide income for members’ retirement. If the fund is not yet in pension-paying mode, it might be useful for trustees to consider how the fund’s current rate of income compares with the legislated minimum payout when pensions are begun. A trap for SMSF trustees is to focus only on the size of the portfolio and neglect to relate this to outgoing pensions when retirement comes along.

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