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SMSF AND SMALL APRA FUND MEMBERSHIP INCREASE

1 July 2021

Self-managed super funds (SMSF) and small APRA funds (SAF) will now be able to have up to six members. The legislation came into effect on 1 July 2021, increasing the membership cap from four. Note that state-based and trust deed regulations may still affect if, and how, you can add additional members to your fund.

Information from the ATO

From 1 July 2021, the maximum number of members for self-managed superannuation funds (SMSF) and small Australian Prudential Regulation Authority (APRA) funds increased from four to six.

SMSFs can either have individual trustees or a corporate trustee where all members are directors of the corporate trustee. Some State and Territory laws restrict the number of trustees a trust can have to less than six. An SMSF is a type of trust, so it is important that you seek professional advice to help you understand if your SMSF is impacted by these restrictions. To avoid this issue SMSFs can have a corporate trustee and each member is a Director of that corporate trustee.

Adding more than four members to your SMSF

We recommend you wait until the ABR has been updated before adding a fifth or sixth member. If you are unable to wait until the ABR has been updated, the below interim solution will be available from 1 July 2021 and can be used to add member/s five and/or six to your fund:

  • Register your SMSF through the ABR adding members one to four.

  • Complete and lodge a paper to provide the details of members five and six.

  • We will then process this into ATO systems and update the ABR once the required system changes have been made, you will not be required to do anything further.