27 Jun 2021

How Do I Remain Compliant with My SMSF?

Deposit: How Much is Enough for a New Home Purchase?

Self-managed super funds allow Australians to fund their retirement. However, SMSFs consist of several regulations to ensure that the funds are reported and managed with consistency. To show that SMSF compliance requirements, the trustees must maintain the certificate handed to them by the approved auditor. If the trustees plan to request a loan or other financing, the lender will request the certificate.

SMSF audits take place annually. In some situations where the SMSF remains in good standing, the audit may be stretched to three years. Keep in mind that lenders are under the same mandates as the SMSF and its trustees. Lenders will request the audit certificate. The certificate must be under 20 months old. This certificate proves that the fund is compliant with the regulations.

An SMSF that misses its audit doesn’t report its income. The Australian Taxation Office doesn’t accept income tax returns without the audit certificate. If things go on this way, there’s so way a lender knows if the fund is run by solid leadership. In the worst-case scenario, it seems like the fund is hiding something. 

The audits also protect the trustees. It ensures that they’re making sound financial decisions. 

SMSF Compliance Requirements Conclusion

Retain the proper documentation to show that a fund has met SMSF compliance requirements. The documentation can be as old as one year and eight months, but no more. The cut-off ends up being 20 months. Mortgage House works with trustees representing SMSFs. The audit documentation is important for the financing process. For more information, contact our loan specialists. We also provide car loans and an online car loan calculator.

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