New SMSF Regulations

As part of the Stronger Super reforms announced on 7 August 2012, the Government has introduced new regulations for Self-Managed Superannuation Funds (SMSFs).

The regulations now require SMSF trustees to:

Consider the insurance needs of members as part of the fund's investment strategy;

• Regularly review the fund's investment strategy;
• Keep money and assets of the fund separate from those held by a trustee; and
• Value assets at market value for reporting purposes.

The most important of these reforms is the requirement to consider the insurance needs of the fund's members. Trustees are now required to document in the fund's investment strategy, or the minutes of a trustee meeting, that they have adequately considered the members insurance requirements.

These measures now form part of the prescribed operating standards for the fund. Penalties may be applied to SMSFs who do not meet the new requirements.

If you would like to discuss your SMSF or find out more about the new regulations please contact our office.