SMSFs – keeping personal and super assets separate, it’s essential

Executive Manager, SMSF Technical & Private Wealth, SuperConcepts
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It’s important to make sure you keep the investments in your SMSF separate from your personal investments and make sure it’s clear who owns what. It may sound like common sense, but if your personal investments end up mixed with your SMSF’s assets there can be serious consequences. In any case the law requires your SMSF to separate your fund’s assets from your personal assets. If you don’t do it, you can be penalised up to $4,200 or even be disqualified as a fund trustee.

Why should you separate assets?

Separating your assets from the fund’s assets can clearly identify those assets belonging to the super fund. This can assist with the accounts for the fund and when calculating each member’s balance. It also helps in difficult situations such as divorce, death of a member and in the unfortunate situation where a member may be insolvent and facing bankruptcy.

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