Changelog - SMSF Deed Rules
This table provides an update of the changes made to the Smarter SMSF trust deed (version control):
Ref: NSF-Deed-2022-07, SDV-Deed-2022-07, LTD-Deed-2022-07,QROPS-Deed-2022-07 | Date Updated: 1 July 2022
| Rule | Amendments |
| Rule 6 (Guide) | Updates the Guide to accommodate the changes from 1 July 2022, including removing references to individuals that are 67 - 74 needing to meet the work test for non-concessional contributions that fall under the definition of an ‘Authorised Contribution’. |
| Rule 12 (Guide) | Added information regarding the fund trustees electing to claim a future service deduction in lieu of claiming insurance premiums in the financial year where a SMSF member had passed away (and they meet the qualifying conditions. |
| Rule 18 (Guide) | Updated ‘Method 3 - Income Method’ to include using a daily weighted average calculation to determine earnings for a particular member’s account and/or superannuation interest. Aligns to the approach taken with SMSF software for allocation for net earnings. |
| Rule 21 (Guide) | Updated to remove reference to any ECC charge being applied to excess contributions after 1 July 2021. |
Ref: NSF-Deed-2021-07, SDV-Deed-2021-07 | Date Updated: 1 July 2021
The order form and templates have been updated to allow for orders with up to a maximum of 6 members in a SMSF - applies to both corporate trustees (directors) and individual trustees.
| Rule | Amendments |
| Rule 3.8 | Removes the reference for transfer to an Eligible Rollover Fund and replaces within the rule with transfer to the Australian Taxation Office to reunite the monies with an active account of the departing member. Comment: The Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 closes the use of Eligible Rollover Funds (“ERFs”) from 30 June 2021 (balance < $6,000) and 31 January 2022 for all other ERFs. See ATO website for further information, https://www.ato.gov.au/Super/APRA-regulated-funds/In-detail/News/Eligible-Rollover-Funds-and-Trustee-Voluntary-Payments/ |
| Rule 4 |
Guide updated to include SuperStream standard for the purposes of accepting rollovers into SMSFs from an APRA regulated fund, along with dealing with the ATO for various release authorities. 4.2(d) updated to reflect obligation on Trustee to obtain Electronic Service Address (ESA) to deal with rollovers, employer contributions, etc. |
| Rule 6 (Guide) | Updated to reflect various contribution rules changes and additional contribution types that form part of the Authorised Contribution definition from 1 July 2021. |
| Rule 14.1(e) | Updated to reflect amendments to section 52B of the SIS Act to include Trustee duties to act in the best financial interests (formerly best interests) of the fund members. This forms part of the Treasury Laws Amendment (Your Future, Your Super) Bill 2021 that was enacted as an Act on 22 June 2021, with effect from 1 July 2021. Note: Best financial interest (SIS covenant) – specifically stated to be included in governing rules, where not expressly included in the deed. |
| Rule 16.4 | Added to the beginning of sub-rule, “Unless the Initial Trustee decides otherwise,” Comment: This will allow for Trustees to consider an alternate method for voting on different events or actions within the fund.
Comment: This amendment provides greater clarity in finding a date in which to determine a member’s account balance for the purpose of voting on decisions. |
| Rule 25.2(b) | Special Rules for Income Streams Updated to allow for a variation of the level of reversion, in addition to adding or removing a reversionary beneficiary with the income stream. |
| Definitions |
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Ref: NSF-Deed-2020-03, SDV-Deed-2020-03 | Date Updated: 10 March 2020
Amendment(s):
- Correction in Rule 6 guide that allows for a downsizer contribution to be made 'on or after 1 July 2018'. Guide had stated as after 1 July 2018.
- Deletion of Rule 12.7 as duplicate of Rule 12.5
- Correction in Rule 25.1 to reference 25.2 when creating a special rule for income streams.
- Correction to Rule 25.8(g) to show as 'and' in the following section - '...between 18 years of age and 25 years of age AND be financially dependent upon the deceased superannuant at the time of the Member's death.
Ref: NSF-Deed-2019-07, SDV-Deed-2019-07 | Date Updated: 1 July 2019
Amendment(s):
- New definition - ADUS meaning automated deed update service
- Rule 29 - added into rule the ability to change the fund rules as part of the 'automated deed update service' (ADUS).
- Updated PDS for new financial year 2019/20
Reason(s):
Smarter SMSF is in the process of developing an automated deed update service that provides you with the option to subscribe to a service that keeps the deed up-to-date as and when any changes are made.
Ref: NSF-Deed-2018-12, SDV-Deed-2018-12 | Date Updated: 7 December 2018
Amendment(s):
- Added new sub-clause to Rule 15 - ff)(v) Carrying on a business: subject to the Superannuation Laws and the fund retaining its Complying SMSFs status, to carry on a business or to undertake business like activities.
Reason:
Any form of significant property development, in particular to comply with the business real property definition is treated as a property development business as opposed to "property investment." An express power to conduct a business has now been added, in addition to the incidental powers which form part of a businesslike activity (e.g. leasing, borrowing, entering into contracts… money etc.).
Ref: NSF-Deed-09-2017, SDV-Deed-09-2017 | Date Updated: 15 September 2017
Amendment(s):
- Amended Rule 25.1(c) by adding two parts to the clause where an individual that is in receipt of a TRIS satisfies a nil cashing condition
- (i) specifically allows for a TRIS to move into retirement phase upon request (written notice) in accordance with the tax laws;
- (ii) allows for a replacement income stream of the TRIS to commute and re-purchase as an ABP.