Trustee Duties

The Superannuation Industry (Supervision) Act 1993 (SIS Act) imposes many requirements on trustees of self managed super funds. These rules require you as trustee to:

• Act honestly in all matters concerning the fund;
• Exercise the same degree of care, skill and diligence as an ordinary prudent person in managing the fund;
• Act in the best interest of all fund beneficiaries;
• Keep the money and assets of the fund separate from other money and assets (for example, your personal assets);
• Retain control over the fund;
• Develop and implement an investment strategy;
• Not enter into contracts or behave in a way that hinders trustees from performing or exercising their functions or powers; and
• Allow members access to certain information.

As a trustee, you are also required to:

• Comply with the Sole Purpose Test
• Accept contributions only within the accordance of the rules in the SIS Act
• Manage the funds investments, including preparing and implementing an investment strategy, and complying with the investment restrictions imposed on a self managed super fund
• Only pay out benefits from the fund in accordance with the rules
• Meet the lodgement and administrative obligations of the fund
• Appoint an approved auditor

For more information on your duties as trustee of a self managed superannuation fund, we suggest you read the ATO Publications section of this site.