What Are the ongoing obligations of an SMSF Corporate Trustee?
An SMSF corporate trustee has annual obligations including signing the ASIC solvency resolution and Annual Statement, paying the annual ASIC invoice, and notifying ASIC of any change to company details within 28 days of the change occurring.
What annual ASIC obligations apply to an SMSF trustee company?
Within 2 months of each anniversary of the company's registration date, directors need to confirm the company's details are correct and that it remains solvent. The annual ASIC invoice for the company also needs to be paid by its due date.
What is a special purpose trustee company and why does it matter?
A special purpose trustee company is one whose only role is to actas an SMSF Trustee. This structure is generally considered optimal and attracts a lower annual ASIC fee than a company that has had other roles, such as a trading company.
What happens if the ASIC invoice isn't paid on time?
ASIC applies automatic fines for late payment, and for special purpose trustee companies, the fine amount exceeds the invoice itself. Continued non-payment can result in the company being deregistered, which can be an expensive and time-consuming issue to fix, particularly where the company holds property.
How do you know who controls your SMSF trustee company?
The shareholders of the trustee company generally hold the voting power to appoint directors, with the rules set out in the company's Constitution. Understanding the shareholding and voting rules helps clarify who controls the SMSF, both now and in the future.
Frequently asked questions
What is a Disqualified Person under the SIS Act?
Section 120 of the Superannuation Industry (Supervision) Act 1993 sets out circumstances, such as certain convictions or insolvency, that can disqualify a person from acting as an SMSF trustee or director.
Can I change directors of my SMSF trustee company?
Yes, but ASIC needs to be notified of the change within 28 days.
What happens if my company is deregistered?
Reinstating a deregistered company, particularly one that owns property, can be a difficult and costly process, which is why timely ASIC payments and lodgements matter.
Thinking about establishing an SMSF?
This information is general and factual in nature. It is not financial product advice, legal advice or tax advice. Lifetime SMSF Pty Ltd is not licensed to provide financial product advice under the Corporations Act 2001. If you require personal advice, consult an appropriately licensed or authorised financial adviser.