Superannuation

DIY Super: Your role and responsibilities

Trustees are responsible for all decisions relating to their DIY super fund. As trustee you must ensure your DIY super fund is properly managed and meets its legal and tax obligations.

Penalties for mismanaging and breaching compliance obligations can be high, so it is worth making sure you understand the rules governing your fund.

Your responsibilities as trustee

DIY super fund trustees must act in accordance with:

• the provisions of the Superannuation Industry (Supervision) Act 1993 (SISA)
• the clauses of the superannuation fund trust deed
• other general rules, for example those imposed under tax law and trust law

Superannuation law contains rules that impose certain requirements on trustees. These rules reflect the duties imposed on a trustee under trust law in general. They require trustees to:

• act honestly in all matters
• exercise the same degree of care, skill and diligence as an ordinary prudent person
• act in the best interest of the fund members
• keep the assets of the fund separate from other assets (e.g. the trustee's personal assets)
• retain control over the fund
• develop and implement an investment strategy
• allow members access to certain information

Keeping your paperwork in order

Fund assets and accounting and banking records must be kept completely separate from those of trustees, members and related employers.

Here is a list of the some of the paperwork you need to keep and maintain as trustee.

• Keep receipts of all sales and purchases for capital gains tax purposes
• Keep receipts for all fund expenses
• Prepare an income tax return, regulatory returns and member contribution statements every year
• Document and follow an investment strategy
• Record minutes of all investment deliberations and decisions
• Document trustee consent and changes
• Keep operating statements, financial records and transaction records for five years
• Keep minutes of trustee meetings, trustee declarations, consents and changes and paper copies of all returns lodged electronically for 10 years.

Like more information?

You will find more detailed information on the role and responsibilities of DIY super fund trustees in the ATO's guide .