1) Record – keeping – Make sure you keep proper records for at least 10 years. Lodge your annual return on time. ATO can apply fines and penalties apply from 1 July 2013 for failure to prepare financial statements and keep proper records.
2) Investment Strategy – From 1 July 2012, every the Investment strategy needs to be updated to include a clause for life and TPD insurance. Each member needs to ensure they document their decision of whether to hold life and/or TPD insurance cover.
3) Make sure you are using net Market Values for all assets – From 1 July 2012, you will need to document your decision in Minutes about an asset’s net market value and provide support for that asset’s value to the auditor.
4) Separation of Assets – You must keep money and other assets of the fund separate from money or assets held personally. If your Fund has a corporate trustee, all investments are to be held in the correct corporate trustee name with correct designation account name eg. Bell Pty Ltd <Cameron Super Fund A/C>, not Bell Pty Ltd <Super Fund Account>.
For individual trustees the correct name of at least 1 individual trustee: Jack Smith <Smith Super Fund A/C>, not Jack Smith <Super Fund A/C>.
5) Contributions – Check that you do not breach your contribution caps. From 1 July 2011, members who breach the concessional cap by $10,000 or less can request a refund by writing to the ATO.
6) Borrowing – You are generally not allowed to borrow, except via a limited recourse borrowing arrangement. For limited recourse borrowing arrangements, please ensure there is a Bare Trustee on the purchase contract, a properly executed Bare Trust Deed, the asset bought is on one title where practicable, and there is a loan agreement at market rates.
7) Rental Property – Ensure current lease/rental agreements are in place and a market rate of rent is used.
8) Pension Payments – Ensure Regular Pension payments are made during the year and comply with the pension standards.
9) Prior Year Breaches and Management Letter Points – Are there any breaches from last year that can be fixed? Ensure prior year management letter points are addressed.
10) In house assets – Review the Fund’s financial position regularly to ensure the in house asset level can be reduced to less than 5%.
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