Becoming an SMSF Trustee

It is an ATO requirement to have a minimum of 2 Individual Trustees or a Corporate Trustee. Note the second Trustee does not need to be a Member. However, the second Trustee can be a Member if you so decide. A Trustee should have a Tax File Number and be over 18.

In a Corporate Trustee structure, all Members must be Directors of the Corporate Trustee.

The term “settlor” refers to the person who establishes a Trust. In an SMSF, the settlor is the Trustee.

By signing the Trustee Declaration, you are legally confirming that you understand your obligations under superannuation law, and a lack of understanding will not be accepted as a defense in the event of a compliance breach. As a trustee, you are personally responsible for all aspects of the fund, including compliance, investment decisions, record-keeping, and reporting requirements.

Key Trustee Obligations
Maintain and regularly review a documented investment strategy
Arrange an independent annual audit by an approved SMSF auditor
Lodge an annual return with the ATO, including payment of the supervisory levy
Accurate records of all transactions, decisions, and meeting minutes must be kept
The Fund’s assets are never used for personal benefit, even on a temporary basis
Ensure the fund complies with the Sole Purpose Test at all times

Clink here for more information on the ATO requirement