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Self-Managed Super Fund Changes
Anthony de Jager • May 3, 2022
2021 - 2022 Financial Year Period
In the last 12 months, there have been some changes to the SMSF annual returns process, which we would like to inform you about and remind you about some SMSF obligations.
SMSF Changes
2021 - 2022 Financial Year Period: 1 July 2021 to 30 June 2022
· Directors of a corporate trustee of self-managed super funds. (SMSFs) must apply for their Director ID Number (read more here)
· SMSF Audits need to be conducted by an approved SMSF auditor outside of Wrights.
· SMSF Auditors are placing more reliance on original documentation. Therefore, please ensure that these are kept on file to be easily accessed when required.
SMSF Trustee Obligations
As an SMSF Trustee, it is your responsibility to manage investments prudently and in the best financial interests of all the members. You must ensure the fund's investment strategy is reviewed regularly and takes into account the retirement goals of its members.
Please review your current investment strategy to see if it fits with the current investment in your fund.
If you need assistance with this documentation, please call our office.
Valuation
Asset valuation is a key component in preparing meaningful SMSF financial reports. It has an impact on the returns for members and, ultimately, SMSF sector performance as a whole. A valuation of assets is required to confirm your SMSF has complied with relevant super laws.
Assets must be valued at market value. In some circumstances, a qualified independent valuer may be required.
General Valuation Principles
You must be able to demonstrate that the valuation has been arrived at using a 'fair and reasonable' process. Generally, a valuation is considered fair and reasonable where it meets all the following.
· it takes into account all relevant factors and considerations likely to affect the
· value of the asset
· it has been undertaken in good faith
· it uses a rational and reasoned process
· it is capable of explanation to a third party.
In addition, some classes of assets must be valued and reported in a specific way.
Click here to download the ATO's Valuation Guidelines for Self-Managed Super Funds
We recommend that you obtain a current valuation for any property held by your SMSF now to comply with the 2021/2022 valuation obligations.
How We Can Help
At Wrights, we understand the complexities of Self-Managed Superannuation Fund administration. Our partners, Dan and Anthony, and our Accountants, Kelly, Nichole, and Matthew, are here to help you navigate the SMSF landscape.
Contact us if you require any assistance managing your SMSF and annual return preparation.
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