This article is summarized from BRW’s article ‘The Nine SMSF Rule Changes You Need To Know’
These changes became effective on July 1, 2013. It’s not too late to make changes to your fund to reposition it to address the consequences of these changes.
From July 1, 2013, trustess must use an approved SMSF auditor registered with ASIC to audit their fund. Trustees need to double check if their current auditor is registered with ASIC and take necessary steps if they aren’t.
SMSF assets must now be revalued at market value in the fund’s financial accounts and statements, starting for the year ended June 30, 2013. Previously, assessing market value for SMSF assets was only required when a pension started, or if the fund had invested in related-party assets.
Although the rules were that SMSFs are required to have an investment strategy, the change now stipulates that trustees must now review the strategy regularly. ‘Regularly’ in this instance means at least annually, as well as when there is a change in trusteeship or membership of the fund. Note that the new rules also require trustees to consider whether the trust should hold insurance policies for the members.
Trustees are required to keep assets separate from other assets held by trustees, members or their associates. Although the rule has always been embedded, now it is a specific requirement to allow ATO to apply penalties on trustees that breach it.
The above highlights are only 4 of 9 changes detailed in the article by BRW. To view the original article click here.