Here is the text of the letter from the ATO:
Your role and responsibilities as a director of the corporate trustee of your self-managed super fund
Dear Trustee,
You are registered as a new director of the corporate trustee of your self-managed super fund (SMSF).
The ATO is the regulator of SMSFs which means we are responsible for ensuring compliance with the super and tax laws.
Your responsibility as a director of the corporate trustee
You are ultimately responsible for making sure your fund meets its obligations. It’s important that you understand your role and responsibilities as a director of the corporate trustee of your SMSF. In some situations, a Legal Personal Representative (LPR) can be nominated as a trustee or a director of the corporate trustee of the fund.
As a trustee you must meet specific obligations under the super laws. These include but are not limited to:
ensuring the fund meets the sole purpose test. This means maintaining your fund for the sole purpose of providing retirement benefits to your fund members (or to their dependents if a member dies before retirement)
creating and regularly reviewing your fund trust deed
developing and implementing an investment strategy for your fund which you must regularly review
administration and record keeping, for example, meeting minutes noting trustee decisions
informing us within 28 days of becoming aware of changes to your fund, including members, trustees or directors, associates or contact details
completing financial statements, arranging the annual fund audit and lodging the SMSF annual return on time.
You can find your responsibilities and obligations in the SMSF Trustee Declaration that you must sign within 21 days of becoming a director of the corporate trustee of an SMSF. For more information visit www.ato.gov.au/forms/trustee-declaration
To help you make your SMSF a success and manage it in accordance with the laws we strongly encourage you to undertake an SMSF course.
Receiving contributions and rollovers
Your SMSF’s Super Fund Look Up (SFLU) status must be ‘Registered’ or ‘Complying’ before any contributions or rollovers can be made to your SMSF. You can check your fund status by looking it up on SFLU.
Rollovers into and out of your SMSF and contributions from non-related party employers need to be done electronically using an SMSF administrator or SMSF messaging provider that provides a SuperStream service.
To use SuperStream you will need to get an electronic service address (ESA) from an SMSF messaging service provider and provide that to us along with your fund’s unique bank account. This means the SMSF’s bank account must be in the fund’s name and not be a bank account also held by a member or their professional representative.
Protecting your super
For most people, it’s illegal to access your super early. This means you usually can’t access your super until you retire and turn 60 or when you turn 65 (regardless of whether you’re still working). Superannuation is meant for your retirement and can only be accessed early in limited circumstances.
If you do access your super illegally, not only do you risk losing your retirement savings, you may also need to pay additional tax, interest and penalties. You may also be disqualified. This means you will be unable to operate an SMSF and have your name published online. For more information visit www.ato.gov.au/illegaleearlyrelease
Be wary of people offering to help you withdraw your super before retirement. These schemes are illegal and can lead to your super being stolen. If you suspect you have been approached by a promoter of these schemes, phone us on 13 10 20.
If you are not a director of this SMSF, then your identity may have been compromised and a person may be attempting to use it to steal your super. Please phone us urgently on 13 10 20 between 8.00am and 6.00pm, Monday to Friday.
Find out more
We have a range of resources that can help you meet your responsibilities and obligations:
managing your SMSF www.ato.gov.au/smsf
obtaining an electronic service address www.ato.gov.au/ESA
providing us with your fund’s bank account www.ato.gov.au/smsfbankaccount
SuperStream www.ato.gov.au/smsfsuperstream
SFLU at www.superfundlookup.gov.au
tax avoidance schemes at www.ato.gov.au/superschemes
updating your SMSFs details at www.ato.gov.au/smsfchangenotice or www.abr.gov.au by choosing ‘Update your ABN details’.
We have also subscribed you to the monthly SMSF Newsletter which provides you with important information to support you in running your SMSF.
If you have any questions about managing your fund, please speak to your tax or super adviser. If you have any other questions about your SMSF you can also phone us on 13 10 20 between 8.00am and 6.00pm, Monday to Friday.
For information about our commitments to you and what we ask of you, go to www.ato.gov.au/atocharter
Yours sincerely,
Ben Kelly
Deputy Commissioner of Taxation
This is a standard letter sent to all new SMSF directors. Below are the most common questions new trustees ask after receiving it, along with clear answers from the Grow team.
1. The SMSF Trustee Declaration – What is it and do I need to sign it?
The letter states you must sign the SMSF Trustee Declaration within 21 days.
Good news – You’ve already signed your ATO Trustee Declaration. It was included in your SMSF Establishment Pack that you signed during setup, so there is no risk of missing the deadline.
2. Super Fund Look Up (SFLU) Status – How do I check if my fund is ‘Registered’ or ‘Complying’?
Your SMSF must show as ‘Registered’ or ‘Complying’ on Super Fund Lookup before any contributions or rollovers can be accepted.
You can check the status yourself anytime by visiting Super Fund Lookup and entering your SMSF’s ABN.
Grow automatically checks your SMSF registration status every morning at around 8:00am AEST.
Once it updates to ‘Registered’, we will email you and begin the process of opening your SMSF bank account. There is no need to check it manually.
Note: The registration process has two stages:
The ATO issues your SMSF’s ABN and TFN (you will receive separate letters).
The ATO then approves the SMSF registration (status changes to ‘Registered’ on Super Fund Lookup).
Timeline: 80% of new SMSFs set up via Grow are approved within 3 business days, and 90% within 2 weeks.
3. SuperStream and Electronic Service Address (ESA) – Do I need to set this up?
The letter mentions you need an Electronic Service Address (ESA) and a unique bank account in the fund’s name.
Grow provides you with the smsfdataflow ESA. You do not need to organise one yourself.
Once your SMSF registration is approved, Grow will complete the bank account application for you (e.g. ANZ or Macquarie). Important: Please do not open a bank account yourself — we prefer to handle this to ensure everything is set up correctly.
4. Investment Strategy and Trust Deed – What do I need to do?
You are required to have (and regularly review) an investment strategy and a trust deed.
You were provided with an initial investment strategy as part of your SMSF Establishment Pack. This broad strategy is suitable for most new members and usually requires no immediate changes.
Your investment strategy should be reviewed at least annually. You can update it anytime — just contact Grow and we’ll provide the template or instructions.
Your trust deed was prepared by specialist SMSF lawyers (Abbott & Mourly via Lightyear Docs). It is a high-quality, up-to-date deed and does not need to be changed unless there are major changes to superannuation law.
5. Record Keeping and Meeting Minutes – What decisions need to be documented?
The letter requires proper administration and record keeping, including meeting minutes for trustee decisions.
Grow prepares the key minutes each year as part of the annual accounts process.
Minutes are particularly important for major decisions (e.g. adding/removing members, commencing a pension, or significant changes).
You do not need to complete a trustee minute for every investment decision. However, if something occurs “outside the normal”, it’s best to document it. When in doubt, contact the Grow team.
6. Sole Purpose Test – What would breach it?
The letter states your SMSF must be maintained for the sole purpose of providing retirement benefits.
Key examples of breaches to avoid:
Personal use of SMSF assets or money (e.g. using a holiday home owned by the fund for personal holidays)
Lending money to yourself or family members on non-commercial terms (note: you generally cannot lend to related parties even on commercial terms)
Using the SMSF to subsidise your own business (e.g. leasing property to your business at below-market rent)
7. The Identity Warning at the End of the Letter – Should I be concerned?
The letter includes a warning about possible identity fraud if you are not actually a director of this SMSF.
If you have not actively set up an SMSF and you received this letter, someone may have fraudulently used your identity.
This is highly unlikely if you set up through Grow SMSF. We use very stringent client identification processes, including biometric verification.
If you have any doubt, please contact us immediately.
8. What Should I Do Next? (Top 3 Practical Steps)
Once you receive this letter, here are the top three things to focus on:
Approve your bank account – As soon as you receive Grow’s email confirming ATO approval, promptly approve/sign the SMSF cash management account application.
Clarify your investment plans – Decide what you want to invest in. While Grow cannot provide personal financial advice, we can guide you on how to implement your chosen strategy in a compliant way.
Review your insurance – Consider whether you want life and TPD insurance owned and paid for by your SMSF. We can help you get quotes if needed.
Need more help? We’re here to support you every step of the way. Simply reply to this article or contact the Grow team directly — we’re always happy to answer your questions.