Three new measures for SMSF trustees that are now enforce

On 7 August 2012 the ATO introduced three new measures that will affect the obligations of Self Managed Super Fund (SMSF) trustees. The ATO has stated that the new measures are designed to address potential risks and strengthen the regulatory framework in which SMSF’s operate.

As a result, SMSF trustees will now be required to adhere to 3 additional operating standards.

1) Trustees must review their fund’s investment strategy on a regular basis.

As the circumstances and objectives of fund members change, trustees are now required to ensure their fund’s investment strategy reflects such changes and remains up-to-date. Eg. If you’re approaching retirement you may consider reviewing your investment strategy to reduce the level of investment risk.

2) As part of their fund’s investment strategy, trustees must consider the need for personal insurance for fund members.

Trustees must now consider the need for income protection, life, total and permanent disability (TPD) or trauma insurances for fund members.

3) Trustees are now required to obtain valuations on all fund assets on an annual basis for end of year reporting purposes.

This measure relates only to assets that require a valuation such as direct property. An annual valuation is now required for such assets from 30 June 2013.

These measures are now in force which means the ATO has the authority to enforce compliance and issue penalties.

In our view, these measures won’t greatly affect the obligations of SMSF trustees because whilst each measure wasn’t a legislative requirement previously, it was best practice.

Simply put, this means best practice has now been legislated.


This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax advice prior to acting on this information.Opinions constitute our judgement at the time of issue and are subject to change. Financial Planning Expert Pty Ltd does not give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
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    Financial Planning Expert is an independent financial planning business based in Melbourne. We provide genuinely independent and conflict free financial advice. We’re experts in self-managed superannuation fund (SMSFs) advice and strategy, retirement planning, property and share investment advice, life and income protection insurance, tax planning, asset protection, estate planning and advice for Australian expatriates.