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Running an SMSF comes with control, but also ongoing responsibility. Each year, there are a few key requirements you need to meet to keep your fund compliant.
The good news is that these obligations are consistent. Once you understand what's required, it becomes a process you can manage year to year.
Lodge your SMSF annual return
Every SMSF must lodge an annual return with the Australian Taxation Office (ATO). This isn't just a tax return — it also reports regulatory information and member details.
The return can only be lodged once your finances are finalised and your audit is complete. The ATO outlines these requirements clearly in its guidance on SMSF administration.
Complete an independent audit
An annual audit is mandatory, regardless of the size or activity of your fund.
Your SMSF must be audited by an approved auditor, who will review both:
- The financial position of the fund
- Whether it complies with superannuation laws
This step needs to be done before lodging your return, and delays here can hold up the entire process. The ATO provides a detailed explanation of the audit requirements.
Keep accurate and up-to-date records
Record-keeping tends to slip when things get busy, but it's one of the first areas auditors look at.
At a minimum, you'll need to keep:
- Financial statements and transaction records
- Minutes of trustee decisions
- Records of contributions and withdrawals
- Documentation for assets held by the fund
If something can't be clearly traced or supported, it usually gets flagged. In most cases, the issue isn't the transaction itself — it's the lack of supporting detail.
Review your investment strategy
Your investment strategy isn't something you set once and leave. It should reflect how the fund is actually operating.
If your asset mix has shifted or your circumstances have changed, the strategy should be updated to match. That includes thinking about how diversified the fund is, whether there's enough liquidity to meet obligations, and whether the level of risk still makes sense.
This doesn't need to be overly complex, but it should be up to date. Outdated strategies are a common point raised during audits, even when everything else is in order.
Pay required expenses and obligations
Throughout the year, your SMSF will also need to meet its financial obligations. This includes tax liabilities, supervisory levy payments, and any relevant insurance or administrative costs.
Staying on top of these ensures there are no surprises at lodgement time.
If you're unsure whether your fund is meeting its requirements or want to simplify the process, get in touch with the team at WMC Accounting for practical, tailored support.
