SMSF - Minute to Approve Financial Statements

Approving the Financial Statements

What is a SMSF?

A SMSF is a special purpose trust into which individuals and employers can pay a person’s superannuation. It has particular tax and asset protection status under Australian law that is designed to encourage people to save for their retirement. The fundamental rules that apply to a SMSF are no different to those that apply to large public offered or Government superannuation schemes. The essential difference is expressed in its name; self managed superannuation fund. It is an investment structure that is operated by its members.

A SMSF consists of 1 to 4 members, all of whom are trustees of the Fund or are directors of a company that acts as the trustee. Even though a SMSF is operated by its members, you may require assistance from an Accountant or Adviser for the administration of the Fund. You will also need to have the Fund’s financial accounts audited each year.

Why do I need these Minutes?

It is best practice to have your financials formally approved by the Trustees. These Minutes achieve that. They are in line with the Australian Taxation Office's desire for proper compliance.

WARNING

If you fail to keep a record of Minutes the Australian Taxation Office may state your fund is non-complying. A non compliant fund is not entitled to any tax concessions and is taxed at the highest marginal tax rate.

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Fund Name
• The Name of your SMSF
• What is the purpose of this Minute?
• What will I get after I purchase this Minute?
• Do I need to do anything else after this Minute is completed?
• Who is allowed to prepare these Minutes?
Trustee Type
• Why do you want to know this?
Company Trustee
• What is an ACN?
• What if I don't know the company ACN?
• Who are the directors of the company?
• What if I have less or more than 4 directors?
Human Trustee
• What if I have more than 4 trustees?
• What is the minimum number of trustees?
Income Year Details
• What is an income year?
Meeting Place
• What is a meeting address?
• Does the meeting need to take place anywhere in particular?

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Fund Name

• The Name of your SMSF

  Please put down the name of your Self Managed Super Fund.
  
  For example:
  
  George Smith Superannuation Fund
  

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• What is the purpose of this Minute?

  The purpose of this Minute is to formally approve the financial statements and annual return.
  
  This is best practice. It lets the Australian Taxation Office know that you are doing everything correctly - to the letter.
  

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• What will I get after I purchase this Minute?

  You receive the formal Minutes to approve the financial statements and annual return.
  
  All you then do is get the Trustees to sign the Minute and put the Minutes in your file.
  

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• Do I need to do anything else after this Minute is completed?

  You need to:
  
  1) Sign the financial statements and accounts. The Minutes are signed.
  
  2) Complete a "Self-managed superannuation fund annual return". After you purchase this Minute we give you a link to this document at the ATO's website.
  
  3) Send this completed "Fund Income Tax" form to the Australian Tax Office by the due date.
  
  4) Keep a record of all financial statements, accounts and minutes for 10 years in your minute book.
  

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• Who is allowed to prepare these Minutes?

  Anyone is allowed to prepare these Minutes, however, the trustees of the superannuation fund approve the Minutes.

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Trustee Type

• Why do you want to know this?

  You can have your company as trustee of your SMSF. Or, you may have kept it simple and just had all the members as Trustees.
  
  It makes no difference to the Minutes.
  
  Just let us know by answering the question:
  
  "yes" I have a company
  "no" just us members (humans) are the trustees
  

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Company Trustee

• What is an ACN?

  An ACN is an "Australian Company Number" this is a special unique number identifying the company.

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• What if I don't know the company ACN?

  You can do a free simple search at www.asic.gov.au by typing your company name.

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• Who are the directors of the company?

  The Directors of the Trustee Company are usually the members of the self managed super fund.
  
  Only in special situations are the directors and members different. For example, sole member funds and members who are minors have different trustees and members.
  
  The number of Directors is limited to a maximum of 4 people.
  

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• What if I have less or more than 4 directors?

  If you have less than 4 directors just leave the other sections blank.
  
  If you have more than 4 directors then you are not a self managed superannuation fund. Different regulatory requirements apply to other funds. This minute is only suited to self managed superannuation funds.
  

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Human Trustee

• What if I have more than 4 trustees?

  If you have more than 4 trustees then you are not a self managed superannuation fund. Different rules apply to other funds. This Minute is only suited to self managed superannuation funds.

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• What is the minimum number of trustees?

  If you do not have a company trustee, you must have at least 2 trustees to oversee your SMSF.
  
  What if my fund is a single member fund?
  
  You still must have at least 2 trustees. One of the trustees is you. The other trustee must either be your relative OR anyone that is not your employer.
  

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Income Year Details

• What is an income year?

  An income year starts on the 1st day of July of one year and ends the 30th of June the next year.

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Meeting Place

• What is a meeting address?

  The meeting address is the actual address of where the trustees or directors meet to discuss the resolutions.
  
  It can be your office, your home or a public place.
  

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• Does the meeting need to take place anywhere in particular?

  The meeting may be held in any location.

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This document has been prepared by the law practice Law Central Legal

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