However, it is ultimately up to the trustees to be responsible for the SMSF administration, and they will be liable for any misappropriation or material breaches that occur on their watch.
Under the SIS Act, SMSF administration also requires the appointment of a SMSF auditor to ensure the fund is acting in accordance with the sole purpose test and is not in breach of the strict guidelines in place for self managed super funds.
Whilst the annual SMSF compliance requirements involve a lot of collating, there are numerous tools and platforms on the market that have been designed to make SMSF administration less arduous for trustees. There are software platforms available that will connect directly with your investment holdings so that your data collection is effectively automated. Obviously the administration of real property assets and collectibles will require a higher degree of intervention by trustees.
SMSF administration requires the oversight and involvement of the fund’s trustees and it is not suffice to appoint an administrator without oversight by the trustee and some degree of involvement. Running a self managed super fund entails a significant degree of responsibility for the fund’s trustees, and if they are not prepared to be involved in its administration, then a SMSF may not be a suitable investment product.
