The trustees must prepare and maintain proper accounting records to ensure that the SMSF is compliant.
Each trustee of a superannuation entity that is a self managed superannuation fund must, in respect of each year of income of the fund, ensure that the following accounts and statements are prepared in respect of the entity:except where the regulations provide that this paragraph does not apply—a statement of financial position;
- except where the regulations provide that this paragraph does not apply—an operating statement;
- the accounts and statements specified in the regulations
The regulations may provide for or in relation to the preparation of accounts and statements covered by subsection (1). If the regulations do so, the accounts and statements covered by subsection (1) must be prepared in accordance with the regulations.
The accounts and statements prepared in accordance with subsection (1) must be signed as follows:
- if there is a single corporate trustee—by:
- if there is only one director of the corporate trustee—that director; or
- otherwise—at least 2 directors of the corporate trustee; or
- if there is a group of individual trustees—by at least 2 of those trustees.
Each trustee must ensure that the accounts and statements prepared in accordance with subsection (1) are retained for a period of 5 years after the end of the year of income to which they relate