Accountants urge standard SMSF trust deed
The Institute of Chartered Accountants in Australia (ICAA) has called on the Federal Government to legislate for a standard trust deed, compliant with the Superannuation Industry (Supervision) Act (SIS Act) covering self-managed superannuation funds (SMSFs).
In a pre-Budget submission lodged with the Federal Government this week, the ICAA claims a standard trust deed would potentially give the Government greater control over the management of SMSFs because they would be operated in accordance with common governing rules.
The institute has also urged service providers offering administration to SMSFs be subject to the terms of the SIS Act.
It said there was increasing concern among the accounting fraternity that administrators of SMSFs were not covered by the Act.
“Penalties for late lodgement of information can be applied to the trustees and auditors of SMSFs,” the submission said. “No penalties extend to service providers engaged by the SMSF to provide administration services.”
It said in such circumstances the remedies available to SMSF trustees arose through contract law and this could prove costly.
AUTHOR
Mike Taylor
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