SMSF trustees reminded to pay annual fees

Corporate trustees in self-managed superannuation funds (SMSFs) are being reminded to pay their annual review fee to the Australian Securities and Investments Commission (ASIC) or run into difficulties.

Over 65% of SMSFs had a corporate trustee and it could be costly if a company’s status became de-registered which could occur if a fee was left unpaid.

This would result in the SMSF no longer having a trustee.

It would also mean:

• The company would cease to exist as a legal entity and can no longer do anything in its own right. Further, the company’s now former directors will no longer have the right to deal with fund assets;
• SMSF assets held by the corporate trustee will vest in the Commonwealth (represented by ASIC);
• Any money held in the fund’s bank account(s) will need to be lodged with ASICs Unclaimed Monies Account; and
• The SMSF would no longer be able to accept employer contributions or any superannuation rollovers.

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“While it may be possible to subsequently re-instate the corporate trustee, this will be a time consuming and costly exercise process. And, once re-instated will subsequently be followed by the need to claim back any monies that were paid to ASIC,” the SMSF Association said.

It recommended trustees ensured their details were up to date with ASIC to ensure they received their annual statement.