What Does an SMSF Trustee Need to Do Each Year?

Running a self-managed super fund comes with real control, but it also comes with ongoing trustee obligations. If you are an SMSF trustee in Perth, Mandurah or elsewhere in Western Australia, it helps to think in terms of an annual compliance cycle rather than a once-a-year rush.

According to the Australian Taxation Office, all SMSF trustees are responsible for running the fund and making decisions in the best financial interests of members. That includes keeping records, reviewing the investment strategy, arranging the yearly audit, valuing fund assets and lodging the SMSF annual return on time.

Checked against ATO guidance in March 2026.

Your core SMSF trustee responsibilities each year

The ATO states that trustees must meet obligations under the Superannuation Industry (Supervision) Act 1993, including:

• acting honestly and with care, skill and diligence
• meeting the sole purpose test
• accepting contributions and rollovers correctly
• developing and reviewing the SMSF investment strategy
• complying with investment restrictions
• valuing SMSF assets at market value
• preparing financial statements
• arranging an annual independent audit
• lodging the SMSF annual return
• keeping accurate records and notifying the ATO of required changes

Source: ATO - Your obligations as an SMSF trustee.

1. Review your SMSF investment strategy

Your investment strategy should not be a document you prepare once and ignore. The ATO says the strategy must be in writing, tailored to your fund and reviewed regularly. It should consider risk, return, diversification, liquidity, member circumstances and whether insurance should be held for members.

The ATO also says trustees should review the strategy at least annually and after major events, such as a market correction, a member joining or leaving, or a member starting a pension.

Source: ATO - Create your SMSF investment strategy.

If your fund is heavily concentrated in one asset or asset class, the ATO expects you to document that you have considered the risks of inadequate diversification and explain how the investment still supports the fund's objectives.

2. Keep records as you go, not just at year end

One of the most common trustee mistakes is leaving documentation until the end of the financial year. Trustees should keep records of decisions and actions throughout the year, including contributions, benefit payments, investment decisions, trustee minutes and supporting documents for valuations.

Good record keeping makes the audit and annual return process more efficient and helps demonstrate that the fund has been managed in line with its investment strategy and legal obligations.

3. Value fund assets at market value

Each year, SMSF assets need to be valued at market value so the fund's accounts, statements and annual return can be prepared correctly. Trustees also need to keep evidence of those valuations for the auditor.

This is especially important where the fund holds direct property, unlisted assets or other investments that may need more than a simple year-end statement to support the value used.

4. Arrange the annual audit before lodging the return

The ATO requires each SMSF to be audited every year by an independent SMSF auditor who is registered with ASIC. Importantly, the audit must be finalised before the SMSF annual return is lodged.

This is one reason trustees who stay organised throughout the year are usually in a much better position at lodgment time.

5. Lodge the SMSF annual return on time

The SMSF annual return is one of the fund's most important compliance obligations. The ATO notes that late lodgment can lead to penalties, a change in Super Fund Lookup status and restrictions on receiving rollovers and employer contributions.

The ATO also notes that newly registered funds and funds with overdue prior-year returns may have different due dates, so trustees should confirm the due date that applies to their own fund.

Source: ATO - Lodge SMSF annual returns.

6. Pay required fees and stay on top of changes

Trustees also need to ensure the SMSF supervisory levy is paid through the annual return and that required changes are reported to the ATO within the relevant timeframes. If the fund has a corporate trustee, separate ASIC obligations may also apply.

A simple annual SMSF checklist

• review the investment strategy and document the review
• check contributions, pension payments and other transactions have been correctly recorded
• collect evidence for year-end asset valuations
• prepare financial statements and supporting documents
• arrange the annual independent SMSF audit
• lodge the SMSF annual return by the relevant due date
• pay any tax and levy obligations on time
• keep minutes, records and change notifications up to date

How specialist support can help

For many trustees, the difficulty is not understanding one rule in isolation. It is keeping the whole compliance cycle organised year after year. That is where specialist support can make a difference, especially for trustees managing more complex investments or moving into retirement phase.

If you need help with SMSF financial reporting and compliance, ongoing SMSF administration, or investment strategy documentation, Magnified SMSF Specialists works with trustees across Mandurah, Perth and regional WA.

Get in touch with our team if you would like help keeping your fund compliant and well organised throughout the year.

This article is general information only and is not personal financial or tax advice. Trustees should seek advice specific to their own circumstances before making decisions about their SMSF.