Managing your own super may sound complex, but it doesn’t have to be. For SMSF trustees, staying compliant with regulations can feel overwhelming, especially when you’re juggling investment strategies, audits, and tax reporting. But with the right guidance, it’s possible to simplify the process and run your fund with confidence.
At Nexia Perth, we believe in uncomplicating the complicated. That starts with helping you understand the core responsibilities of SMSF compliance, and supporting you through every stage of the journey.
Step 1: Setting up your SMSF the right way
Starting a self-managed super fund involves a series of legal and administrative steps – and doing them in the right order matters.
“You want to think of this like building a house,” says Robert Luo, Associate Director of Superannuation at Nexia Perth. “The trust deed is your blueprint, the trustee structure is your foundation, and the registration process is your frame. Skip one step, and you’re building on shaky ground.”
Key setup steps include:
- Choosing between individual or corporate trustees.
- Creating a trust deed.
- Registering the fund with the ATO and applying for an ABN.
- Opening a dedicated SMSF bank account.
- Developing a clear, written investment strategy.
This is where many trustees first encounter complexity – but it doesn’t have to be difficult. With the right help, these decisions can be made quickly and correctly.
Step 2: Running your SMSF day to day
Once your SMSF is established, you become responsible for its ongoing management, as well as the compliance obligations that come with it.
That includes:
- Maintaining detailed financial records for at least five years.
- Ensuring contributions are made and accepted correctly.
- Preparing annual financial statements.
- Organising an independent audit.
- Lodging the SMSF annual return with the ATO.
“Compliance is not a passive obligation, it’s an active responsibility,” Robert explains. “Every regulatory decision you meet with diligence today is a safeguard for your retirement capital tomorrow. At this level, precision and forward planning are foundational.”
Following your investment strategy is key, and so is reviewing it regularly to keep it aligned with your goals and market conditions.
Compliance Tests:
In managing your SMSF, there are key compliance tests you must adhere to, ensuring the fund’s operations are in line with regulatory requirements:
- Sole Purpose Test: All SMSF investments must be made solely to provide retirement benefits to members or death benefits to their dependents.
- Arm’s Length Test: All SMSF transactions must be conducted on a commercial basis, with no preferential treatment allowed for related parties.
In addition to these tests, there are restrictions on certain activities. While some exceptions exist, SMSFs are generally prohibited from:
- Borrowing
- Lending money or providing financial assistance to members or their relatives
- Acquiring assets from related parties
- Investing in related parties
Managing an SMSF isn’t just about ticking boxes, it’s about playing the long game. Staying on the right side of compliance tests and rules keeps your fund sharp and on target. SMSF rules aren’t exactly light reading. Nexia is here to uncomplicate the complicated; helping you steer your fund with confidence and clarity, so you can focus on what really matters, turning today’s decisions into tomorrow’s freedom.
Step 3: Winding up your SMSF the smart way
Eventually, you may choose to close your SMSF. This might be because you’re retiring, simplifying your finances, or consolidating super into another fund. But winding up isn’t as simple as transferring the money out.
“You don’t want to get to retirement and find loose ends from your SMSF are still hanging around,” says Robert. “A clean, compliant exit is just as important as a strong start.”
To wind up your SMSF, you’ll need to:
- Pay out or roll over all member benefits.
- Complete final financials and arrange an audit.
- Lodge the final SMSF annual return.
- Close your bank account and cancel the fund’s ABN.
Done correctly, this final step gives you peace of mind and a clear financial pathway forward.
Keep it simple: Get expert advice early
SMSF compliance doesn’t need to be confusing, but it does need to be right.
At Nexia Perth, we specialise in helping trustees navigate every stage of the SMSF lifecycle with clarity and confidence. Whether you’re just starting out, looking to stay compliant, or ready to exit your fund, we’re here to make the process simple.
Ready to simplify your SMSF?
Need help managing your SMSF? Our team at Nexia Perth are experts at turning complex rules into clear, practical steps. Whether you’re setting up, managing, or winding down your fund, we’re here to help you feel confident and in control.
Contact Nexia Perth today for expert support from our Superannuation team.
