The ATO SMSF Trustee Declaration must be completed by new trustees and directors of corporate trustees of self-managed super funds.
Who should complete this declaration?
You must complete this declaration if you become a trustee or director of a corporate trustee (trustee) of:
a new self‑managed super fund (SMSF)
an existing SMSF.
You must sign this declaration within 21 days of becoming a trustee or director of a corporate trustee of an SMSF.
A separate declaration is required to be completed and signed by each and every new trustee.
You must also complete the declaration if you:
have undertaken a course of education in compliance with an education direction
are a legal personal representative who has been appointed as trustee on behalf of:
member who is under a legal disability (usually a member under 18 years old)
member for whom you hold an enduring power of attorney
deceased member.
What should you do with the declaration?
You must keep your completed declaration for at least 10 years and make it available to the ATO if they request it.
Do not send your completed declaration to the ATO unless they request it from you.
Self-managed super fund trustee declaration
I understand that as an individual trustee or director of the corporate trustee of [SMSF Name]
I am responsible for ensuring that the fund is operated in accordance with the Superannuation Industry (Supervision) Act 1993 (SISA) and other relevant legislation.
The Commissioner of Taxation (the Commissioner) has the authority and responsibility for administering the legislation and enforcing trustees’ compliance with the law.
I must keep myself informed of changes to the legislation relevant to the operation of my fund and ensure the trust deed is kept up to date in accordance with the law and the needs of the members.
If I do not comply with the legislation, the Commissioner may take the following actions:
impose administrative penalties on me
give me a written direction to rectify any contraventions or undertake a course of education
enter into agreements with me to rectify any contraventions of the legislation
disqualify me from being a trustee or director of a corporate trustee of any superannuation fund in the future
remove the fund’s complying status, which may result in significant adverse tax consequences for the fund
prosecute me under the law, which may result in fines or imprisonment.
Sole purpose
I understand it is my responsibility to ensure the fund is maintained for the purpose of providing benefits to the members upon their retirement (or attainment of a certain age) or their beneficiaries if a member dies. I understand that I should regularly evaluate whether the fund continues to be the appropriate vehicle to meet this purpose.
Trustee duties
I understand that by law I must at all times:
act honestly in all matters concerning the fund
exercise skill, care and diligence in managing the fund
act in the best financial interests of all the members of the fund
keep records of decisions made about the running of the fund, including the appointment of professional advisers and the retirement of members and payment of benefits
ensure that my money and other assets are kept separate from the money and other assets of the fund
take appropriate action to protect the fund’s assets (for example, have sufficient evidence of the ownership of fund assets)
refrain from entering into any contract or do anything that would prevent me from, or hinder me in, properly performing or exercising my functions or powers as a trustee or director of the corporate trustee of the fund
allow all members of the fund to have access to information and documents as required, including details about:
the financial situation of the fund
the investments of the fund
the members’ benefit entitlements.
I also understand that by law I must prepare, implement and regularly review an investment strategy having regard to all the circumstances of the fund, which include, but are not limited to:
the risks associated with the fund’s investments
the likely return from investments, taking into account the fund’s objectives and expected cash flow requirements
investment diversity and the fund’s exposure to risk due to inadequate diversification
the liquidity of the fund’s investments having regard to the fund’s expected cash flow requirements in discharging its existing and prospective liabilities (including benefit payments)
whether the trustees of the fund should hold insurance cover for one or more members of the fund.
Accepting contributions and paying benefits
I understand that I can only accept contributions and pay benefits (income streams or lump sums) to members or their beneficiaries when the conditions specified in the law and the fund trust deed have been met.
Investment restrictions
I understand that, as a trustee or director of the corporate trustee of the fund, subject to certain limited exceptions specified in the law, I am prohibited from:
giving financial assistance using the resources of the fund to a member of the fund or a member’s relative (financial assistance means any assistance that improves the financial position of a person directly or indirectly, including the provision of credit)
acquiring assets (other than business real property, listed securities, certain in-house assets and acquisitions made under mergers, allowed by special determinations or acquisitions from the trustee or investment manager of another regulated super fund as a result of a breakdown of a relationship) for the fund from members or other related parties of the fund
borrowing money (or maintaining an existing borrowing) on behalf of the fund except in certain limited circumstances (while limited recourse borrowing arrangements are permitted, they can be complex and particular conditions must be met to ensure that legal requirements are not breached)
acquiring an in-house asset if the fund’s in-house assets exceed 5% of the market value of the fund’s total assets, or the in‑house assets will exceed 5% of the market value of the fund’s total assets by acquiring the asset (in-house assets are loans to, or investments in, related parties of the fund – including trusts – or assets subject to a lease or lease arrangement between the trustee and a member, relative or other related party)
entering into investments that are not made or maintained on an arm’s length (commercial) basis (this ensures the purchase or sale price of the fund’s assets and any earnings from those assets reflects their market value).
Administration
I understand that the trustees of the fund must:
keep and retain for at least 10 years
minutes of all trustee meetings at which matters affecting the fund were considered (this includes investment decisions and decisions to appoint members and trustees, the retirement of members and payment of benefits)
records of all changes of trustees, including directors of the corporate trustee
each trustee’s consent to be appointed as a trustee of the fund or a director of the corporate trustee
all trustee declarations
copies of all reports given to members
documented decisions about storage of collectables and personal use assets
ensure that the following are prepared and retained for at least five years
an annual statement of the financial position of the fund
an annual operating statement
copies of all annual returns lodged
accounts and statements that accurately record and explain the transactions and financial position of the fund including asset market valuation
copies of Transfer balance account reports lodged
copies of any other statements you are required to lodge with us or provide to other super funds
appoint an approved SMSF auditor each year, no later than 45 days before the due date for lodgment of the fund’s annual return and provide documents to the auditor as requested
lodge the fund’s annual return, completed in its entirety, by the due date
review the independent audit report received from the approved SMSF auditor and take action as required
notify the ATO within 28 days of any changes to the
membership of the fund, or trustees or directors of the corporate trustee
name of the fund
contact person and their contact details
postal address, registered address or address for service of notices for the fund
notify the ATO in writing within 21 days if the fund becomes an Australian Prudential Regulation Authority (APRA) regulated fund.
DECLARATION
By signing this declaration I acknowledge that I understand my duties and responsibilities as a trustee or director of the corporate trustee of the self-managed superannuation fund named on this declaration (or if the fund’s name changes, that name). I understand that:
I must ensure this document is retained for at least 10 years or while I remain a trustee or director of the corporate trustee (whichever is longer) and, if I fail to do this, penalties may apply.
Administrative penalties can be imposed on me for not complying with the legislation
I may have to make this document available for inspection by a member of staff of the ATO and, if I fail to do this, penalties may apply.
I do not have access to the government’s financial assistance program that is available to trustees of APRA-regulated funds in the case of financial loss due to fraudulent conduct or theft.
I declare that the information provided in the form is true and correct.