Product of the Month - is your SMSF trust deed up-to-date?

26/04/2017

The end of financial year is fast approaching and in light of the Fair and Sustainable Superannuation Changes it's important for trustees to be assured their SMSF trust deed is up-to-date and compliant.

Daniel is a trustee of an SMSF. Accordingly, he is only permitted to act in accordance with the powers afforded to him under the trust deed. Daniel hasn’t updated his trust deed to provide him with the necessary powers to deal with his SMSF in accordance with the new changes to superannuation law. If Daniel doesn’t update his SMSF trust deed and acts outside the powers given to him, he could be in breach of trust, giving rise to serious penalties.

It’s not too late to update your SMSF Trust Deed

Lucky for Daniel – it’s not too late! The Fair and Sustainable Superannuation Changes largely commence on 1 July 2017. It is essential that Daniel has his SMSF trust deed reviewed and revised now to avoid being caught out.

New trustee powers

Just some of the SMSF trustee powers that are now essential in respect of the legislative powers are:

1.    powers to permit different types of pensions to be commuted for the purpose of reducing or avoiding exceeding the transfer balance cap;
2.    powers to make catch-up concessional contributions; and
3.    powers to roll over death benefits.

Our services

To assist our clients we offer updates of SMSF governing rules at various times throughout the year. This service helps to keep SMSFs at the cutting edge of legal developments, and improves the flexibility for SMSF trustees.

At SUPERCentral, those updates to the governing rules have already occurred automatically for SUPERCentral clients. For Townsends Business & Corporate Lawyers clients, you are able to select an opt-in to have your SMSF governing rules updated.

If you are unsure whether your SMSF trust deed is up-to-date, or whether it includes the relevant powers to deal with new superannuation law, please do not hesitate to contact us.

For further information, please contact Townsends Business & Corporate Lawyers on (02) 8296 6222.