I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

What Not to Do in a Self-Managed Super Fund (SMSF)

There are plenty of traps SMSF trustees can fall into when it comes to super compliance. But what are some of the biggest mistakes they make?

The number one mistake that people make with SMSF is the fund lending Manning to a fund member. That's an absolute no. That accounts for at least 20% of the contravention, and that's quite a large number in isolation. And it's about people tapping into their fund when they are short of money in a personal sense. It could be a small business or big business.

Practices that are Against the Rules

This is against the rules. You can't tap into it or write yourself an IOU and put the money back at the end of the year. You need to avoid that risk. You also need to avoid the temptation when it arises, especially when you need money. If you are caught doing this, your fund can effectively be declared null and void. And this is a big penalty.

The other contraventions include a separation of assets where fund member aren't adequately separating their asset. They need to know what their super funds asset are and what their assets are and also what their small business asset is. This can cause confusion and lead the person into trouble.

This is also often where we need to have a corporate trustee or your super fund to assist you. So as you are filling in the forms, as you are seeking and buying things, if you have your personal name in some of those forms, you need to make sure that it's clear. Do you hold that asset personally or do you hold that asset as property to your super fund?

This can also happen with property transactions where, at the land total's office, and many states, you can register the Trust details on the property title. So the Trustee's name is personally registered. This spells the importance of simple document and keeping those assets well-recorded.

General Administrative Contraventions
General administrative contraventions simply mean sloppy paperwork. Running an SMSF does involve paperwork and being a good bookkeeper, and keeping those bits of paper well-filed, will assist you in the long run.

There may be many more pitfalls about self-managed super funds that you may not be aware of. Feel free to consult our experts for more information. Call us at 1300 252 167

Loading PLease Wait..