Some people call Self Managed Super Funds
‘do it yourself super’ or ‘DIY funds’. And sure, a Self Managed Super Fund will give
you more control over your super — but you can’t do it all yourself! Let’s look at some of the people you will
have to work with to meet your obligations. Most funds have at least two members and trustees.
You are all responsible for managing the fund so you all have to work together. Likewise
you are all responsible for the consequences of decisions made and any penalties if things
go wrong — even if you didn’t make the decision yourself! A breakdown in a relationship with
other trustee members can have a very damaging effect on the fund. You will need an independent self managed
super fund auditor who is registered with ASIC to complete your fund’s audit each year.
If the auditor finds any issues, they will give you a qualified audit report and you
must take action to resolve those issues. In some circumstances, you will need a qualified
actuary to provide you with an actuarial certificate. This will help you work out the amount of
tax benefits available to your self managed super fund when it is paying an income stream. Each year, you need to value your assets at
market value. In some circumstances, you will need an independent valuer who is qualified
to do this, for example to value artwork. The Australian Taxation Office has valuation
guidelines on their website. Many trustees may also need help from other
people to run their self managed super fund. You can use an administrator who will manage
most of the day-to-day running of your self managed super fund. This might save you some
time — but remember the responsibility is still yours. Each year you need to prepare financial accounts
and statements that meet the accounting standards. If you can’t do this yourself, you will need
an accountant. The accounts and statements must be prepared each year before the self
managed super fund is audited. Most trustees arrange for a tax agent to lodge
their self managed super fund annual return. You may consult a financial planner for wealth
or estate planning or an investment manager to help you choose and monitor fund investments. For complex situations, you may also want
to consult a superannuation, tax or legal specialist. So as you can see — you certainly can’t do
it all yourself! There are quite a few people that you need to work with to make sure your
fund is managed well. But don’t forget – no matter how much help you get from others,
you are still ultimately responsible for your self managed super fund. For more self managed super fund information
take a look at our other videos — or visit the ATO website at www.ato.gov.au