AVOID FINES WITH PROPER RECORD KEEPING

16 June 2022

Accurate recording keeping is an essential activity for all SMSF trustees. Not only is it a legal requirement, but it makes life so much easier for everyone involved (including us, the SMSF auditor) when the time comes to lodge your SMSF annual return. Good record keeping will also help to ensure the SMSF fund’s audit is completed in time to meet the ATO’s deadlines - no one wants to be scrambling around at the last minute for missing paperwork. 

Yes. You can be fined! 

Each trustee connected to the SMSF has the responsibility to keep good records. This administration work might feel like a hassle, but the little bit of extra effort put in during the year will result in many fewer headaches overall. If satisfactory record-keeping isn’t done, the SMSF auditor is required by law to make a report to the ATO, which can lead to offending trustees being fined.

What should you record?

There is help in knowing what needs to be recorded. The ATO has created a video covering record-keeping requirements. If further help or clarification is needed, there are ATO approved education courses on offer to improve the understanding of SMSF trustee obligations.

Helpful Resources

• Record-keeping requirements video

• ATO approved education courses

In summary

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Everyone involved benefits from the continuous effort of good recording-keeping and SMSF trustees can avoid fines from the ATO. Plus, it will make dealing with the ATO and your SMSF auditor so much easier. Make accurate record-keeping your friend!