Increase in SMSF membership receives royal assent
Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 received royal assent on 22 June 2021.
From 1 July 2021, self-managed super funds (SMSF) and small APRA funds (SAFs) will be able to have up to six members.
If you are considering expanding your fund, you will need to consider things such as what your fund’s trust deed allows, the structure of your fund and its reporting requirements.
Some State and Territory laws restrict the number of trustees a trust can have. Because an SMSF is a type of trust, your fund may be impacted by these restrictions. To avoid this issue, you can set up your SMSF with a corporate trustee and each member as a Director of the corporate trustee.
The ATO is currently implementing the necessary system changes to enable SMSFs to add members five and six to their fund through the Australian Business Register (ABR). We recommend you wait until the ABR is updated before you register or update your fund with more than four members.
If this is not possible, an interim solution will be available from 1 July 2021 and can be used to add a fifth or sixth member.
It is important to seek professional advice and check State or Territory law restrictions before registering or expanding your fund. Call the team at Salisburys in Albury on 02 6041 3014.