Financial Statements & Tax Returns

Stay on top of your obligations as an SMSF trustee.

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Financial Statements & Tax Returns
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Financial statements

As an SMSF trustee you are responsible for the annual return to be lodged with the ATO each year and for the financial statements to be audited.

The financial statements consist of:

Balance Sheet

Your SMSF balance sheet should show all the assets of your fund, along with any liabilities (such as any limited recourse borrowing arrangements used to purchase investment property).

The assets in your SMSF balance sheet must be in your fund’s name and listed at their current market value. You should have documentation to support asset valuations. ATO guidelines for valuing the most common types of SMSF assets are provided in the table below.

Income Statement (Profit & Loss)

SMSF income statement should include all fund income from member contributions and fund earnings, less any associated expenses (whether deductible or non-deductible).

Member Statement

Member statement shows each member’s balances, including breakdown for the year:

  • contributions
  • profit allocation
  • lump sum or pension withdrawals
  • tax payable

Annual Tax Return

Current SMSF tax return has 11 sections and you are best to engage professionals to ensure it is done correctly.

Also note that the financials need to be audited before the annual return is lodged with the ATO.

How long do you need to keep the documents for?

You need to keep these for at least 5 years:

  • Accurate and accessible accounting records that explain the transactions and financial position of your SMSF
  • An annual operating statement and an annual statement of your SMSF’s financial position
  • Copies of all SMSF annual returns lodged
  • Copies of transfer balance account reports lodged
  • Copies of any other statements you are required to lodge with us or provide to other super funds.

And these for at least 10 years:

  • Minutes of trustee meetings and decisions (if matters affecting your fund were discussed, for example you reviewed the fund’s investment strategy)
  • Records of all changes of trustees
  • Trustee declarations recognising the obligations and responsibilities for any trustee, or director of a corporate trustee, appointed after 30 June 2007
  • Members’ written consent to be appointed as trustees
  • Copies of all reports given to members
  • Documented decisions about storage of collectables and personal use assets.

We can look after all of the above for you so get in touch.

Frequently Asked Questions

Not all funds have the same lodgment due date. Normally, the newly established fund will have a due date of 28 February, with future due dates being 15 May.

All assets need to be disclosed in the SMSF financial statements at market value.

If the SMSF has a direct interest in real estate, the property can be revalued every 3 years if the fund is in accumulation phase.

If there is a member that is drawing pension, then the property needs to be revalued each year.

It used to be that you only faced penalties for late lodgment.

The ATO now though lists SMSF as non-compliant and the fund is not able to accept employer contributions until the SMSF tax returns are brought up to date.

Collectibles refer to:

  • Artwork
  • Jewellery
  • Antiques
  • Artefacts
  • Coins, medallions or bank notes
  • Postage stamps or first-day covers
  • Rare folios, manuscripts or books
  • Memorabilia
  • Wine or spirits
  • Motor vehicles and motorcycles
  • Recreational boats
  • Memberships of sporting or social clubs.

Independent valuations are required for collectibles.

No.

Once your completed return is lodged, it is deemed to have been automatically assessed. In other words, you won’t receive a notice of assessment from the ATO as you do with your individual tax return.

That means you need to remember to pay tax (if any) before the due date.