Do the Right Thing — Compliance
In This Chapter
Following the super laws and your trust deed
Understanding the eight main areas of super compliance
Flaunting the super laws leads to financial penalties and more
Maintaining your super fund for the sole purpose of providing retirement benefits
M ention the term ‘compliance’ and most individuals get fidgety while they wait for their eyes to glaze over. Compliance seems like a boring concept for many people, but complying with the super rules is the key to a successful self-managed super fund (SMSF).
Compliance with the super rules, however, is merely a means to an end. The ‘end’ or purpose of your SMSF isn’t simply to stay on the right side of the law (although that’s a good thing to do), but to save for your retirement in a ‘concessionally taxed’ environment. Concessionally taxed means paying less tax or even no tax.
Okay then: If you want a tax-friendly retirement vehicle for your savings, delivering you tax-free super from the age of 60 and other tax concessions, you have to follow some special rules — that’s compliance! ...