SMSF — Compliance
SMSF Compliance & Contribution Rules
The year-round obligations that keep a Self Managed Super Fund complying — sole-purpose test, contribution caps, preservation and conditions of release, the in-house asset rule, related-party dealings and record keeping. Compliance-led, written for trustees. General information only.
- Sole-purpose test
- Contribution caps
- Preservation rules
- In-house assets
- Related-party rules
Self Managed Super Funds are not for everyone. SMSF rules are complex and trustees are personally responsible for compliance with superannuation, tax and investment laws. Establishing and running an SMSF involves trustee duties, ongoing administration, audit and reporting costs. Information on this page is general only — seek personal advice based on your circumstances before establishing or changing an SMSF strategy.
The framework
The compliance rules that govern every SMSF.
SMSF compliance is not a single annual event — it is a set of rules the trustees must satisfy all year. The areas below are the ones that most often determine whether a fund stays complying. They are general information; personal advice on suitability should come from a licensed adviser.
Sole-purpose test
Retirement benefits only
The foundation rule: the fund must be maintained solely to provide retirement or death benefits. Any present-day benefit to a member or related party puts the fund’s complying status at risk. Every investment decision has to be able to satisfy this test.
Contribution caps
Concessional · non-concessional · indexed
Contributions are grouped into concessional (before-tax) and non-concessional (after-tax) amounts, each with an annual cap that is indexed over time. Carry-forward and bring-forward rules can apply. We confirm the current caps and your available room for the relevant year rather than relying on a fixed figure.
Preservation & conditions of release
When benefits can be paid
Benefits are generally preserved until a member meets a condition of release, such as reaching preservation age and retiring, or turning 65. Accessing super early without a valid condition is a serious breach. We check the position before any benefit payment or pension is started.
In-house asset rule
5% limit · related parties
Investments in, loans to or leases with related parties are broadly limited to five per cent of the fund’s total assets at market value, with limited exceptions such as business real property. We monitor the position so it does not drift over the limit unnoticed.
Related-party & arm's-length rules
Market value · non-arm's-length income
Dealings with related parties must generally be on arm’s-length terms. Non-arm’s-length income and expenses can be taxed at the top rate, so related-party transactions need to be priced and documented at market value, not at a concession.
Record keeping & asset valuations
Minutes · market value · evidence
Trustee minutes, contribution and pension records, and assets valued at market value with supporting evidence are required from day one. Clean records are what make the annual audit and return straightforward rather than a reconstruction exercise.
What to watch
Where SMSF compliance commonly goes wrong.
Most contraventions are coordination or timing issues rather than deliberate breaches. These are the ones we see most often — and the ones the ongoing compliance disciplines are designed to prevent.
Exceeding a contribution cap
Contributions made without checking the current cap or the member's available room — including employer contributions that tip a member over — can create extra tax. The caps are indexed, so last year's number is not a safe assumption.
Related-party and personal-use breaches
Using a fund asset personally, renting a residential fund property to family, or buying the wrong asset from a related party breaches the sole-purpose and acquisition rules. The line is checked before, not after, a transaction.
In-house assets drifting over 5%
A related-party investment or loan that quietly grows past the five per cent limit, often as other assets fall in value, triggers a written rectification requirement. We monitor the ratio through the year so it does not surprise the audit.
Early access without a condition of release
Paying benefits before a valid condition of release is met — a serious breach with significant penalty and tax consequences. We confirm the member's position before any payment or pension is started.
How we work
Keeping a fund compliant through the year.
Compliance is steadier and cheaper when it is maintained continuously rather than reconstructed at audit time. This is the rhythm we follow as part of an ongoing SMSF engagement.
Records & coding
The fund's transactions are recorded and coded through the year so the position is current, not assembled from scratch at year-end. Contribution and pension records are kept as they happen.
Contribution monitoring
Concessional and non-concessional contributions are tracked against the current caps and the member's available room, with carry-forward or bring-forward considered, so caps are not exceeded by accident.
In-house & related-party checks
The in-house asset ratio and any related-party dealings are reviewed against the limits and the arm's-length requirement before transactions, not after.
Valuations & strategy
Assets are valued at market value with supporting evidence, and the investment strategy is kept current — both are conditions of a clean audit.
Annual financials & return
Year-end financial statements and the SMSF annual return are prepared from the maintained records, ready for the independent audit.
Independent audit & lodgement
We coordinate the independent audit with an ASIC-registered SMSF auditor, resolve any queries, and lodge once the audit is complete.
Frequently asked questions
SMSF compliance — common questions.
Each year an SMSF must keep proper accounting records, prepare financial statements, have an independent audit completed by an ASIC-registered SMSF auditor, lodge the SMSF annual return, value assets at market value, maintain a current investment strategy, and stay within the contribution, in-house asset and related-party rules. Trustees are personally responsible for meeting these obligations under the SIS Act and tax law, and the responsibility cannot be delegated away. We coordinate the accounting, audit and lodgement so the obligations are met on time, but the trustee duties remain the trustees.
Related
Where this fits in the bigger picture
Compliance sits alongside the annual return, the independent audit, the investment strategy and fund establishment. These connected pieces all draw on the same records.
- SMSF
SMSF annual return & accounting
The recurring annual engagement — financial statements, member statements, the SMSF annual return and audit coordination.
- SMSF
SMSF audit coordination
How the mandatory independent audit by an ASIC-registered SMSF auditor is coordinated each year before lodgement.
- SMSF
SMSF setup
Establishing the fund correctly — trustee structure, deed, registration and the compliance plan that follows.
- SMSF
SMSF services overview
The full SMSF service scope across establishment, annual compliance, audit and strategy.
- Guide
Guide: SMSF property rules
What an SMSF can and cannot do with property — the rules and restrictions, in plain English. General information only.
- Local
Get in touch
Book a compliance call. We confirm scope and a fixed fee before any engagement begins.