Ask Your Aspen Advisor:
“I have (or am thinking about starting) an SMSF – how do I know I am not accidentally breaking the rules, and what should I be learning now?”
Running your own self managed super fund can feel empowering. You decide where the money goes and how the investments are managed.
The catch is that SMSF trustees have serious legal responsibilities. The rules are detailed and, in some areas, unforgiving. If you do not know what those rules are,
it is very easy to make a mistake without realising it.
Why Understanding The Rules Matters
Common SMSF problems often come from simple misunderstandings, such as:
- Using fund assets for personal use
- Lending to or investing with related parties on non commercial terms
- Going over in house asset limits
- Making benefit payments when conditions are not met
- Poor or incomplete record keeping
These issues do not always start as deliberate wrongdoing. Often, they start as “this seems harmless” decisions that slowly become reportable breaches.
Education is your first line of defence. You cannot comply with rules you have never heard of.
The ATO's Focus on Trustee Education
The ATO has signalled that it expects trustees to take learning seriously. It has outlined when it might issue an “education direction” that forces trustees to complete specific training if their behaviour suggests they do not understand their duties.
If you get to that point, something has already gone wrong.
Trustees who:
- Make an effort to understand their obligations
- Seek advice early when unsure
- Fix issues properly and document their actions
are usually in a much healthier position than those who treat the fund casually.
Practical steps for SMSF trustees
Here are some sensible actions if you have, or are considering, an SMSF:
- Use the ATO’s SMSF resources
The ATO has free online courses on setting up, running and winding up an SMSF. They are designed for trustees and are a good starting point. - Complete the knowledge checks honestly
Treat them as a health check, not a box to tick. If you do not understand a topic, that is a sign to dig deeper. - Ask for help when something feels unclear
Related party transactions, property use, loans and pensions are all areas where early advice can save a lot of pain later. - Keep clear records
Document training you have done, advice you have received and the reasons behind major fund decisions. Good records support your position if the fund is ever reviewed.
Final Thought
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