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SMSF record-keeping requirements

SMSFs are heavily documented by design. The fund’s tax return and audit are only as good as the records you keep. If you have the right documents (and they’re consistent), the annual work is smooth. If you don’t, it can become expensive and stressful.

Why record-keeping matters in an SMSF

This is not just “admin” — it’s part of staying compliant as a trustee.

Audit readiness

Every SMSF must be audited each year. Clean records reduce audit questions, delays, and back-and-forth.

ATO compliance

Trustee decisions need to be documented (especially the investment strategy and key fund actions). Missing minutes is a common weak spot.

Protect the fund

Good documentation helps show the fund’s actions were for retirement purposes and consistent with the governing rules.

Tell it like it is: most SMSF “issues” are documentation issues — not complicated transactions.

The core documents your SMSF should have

If you have these organised, you’re 80% of the way there.

Fund governance

  • Signed trust deed (and any deed updates/amendments).
  • Trustee/member details and changes (appointments/resignations).
  • Member applications and fund establishment documents (where applicable).
  • Bank account details (fund account must be separate from personal accounts).

Financial + tax records

  • Bank statements for the full year (all fund accounts).
  • Broker/platform statements and contract notes for buys/sells.
  • Managed fund/ETF annual tax statements (if applicable).
  • Dividend statements and franking credit info.
  • Expense invoices paid by the fund (accounting, audit, admin, investment costs).
Valuations: what the auditor will expect
The fund’s assets need to be valued at market value for reporting. Listed assets are usually straightforward. Property, unlisted investments and related-party assets are where you need better evidence (appraisals, comparable sales, valuations, etc.).

Investment strategy and trustee minutes (non-negotiable)

You don’t just “have” an investment strategy — you must maintain it and document trustee decisions.
SMSF trustees are expected to have a documented investment strategy and to review it regularly. Key decisions should be recorded in trustee minutes (or resolutions) so the audit trail is clear.

What a practical investment strategy covers

  • Objectives and expected return (in plain English).
  • Risk profile and liquidity needs (including ability to pay pensions).
  • Diversification approach (or documented reasons if concentrated).
  • Insurance considerations for members (and the decision made).
  • How the strategy is monitored and reviewed.

Examples of minutes you should keep

  • Adoption/review of investment strategy (annual or when circumstances change).
  • Starting, commuting or changing pensions and minimum pension considerations.
  • Acceptance of contributions and key member decisions (where relevant).
  • Major investments/disposals (especially property, related-party assets, collectibles).
  • LRBA decisions (if the fund has a limited recourse borrowing arrangement).
“We talked about it” is not a record. If the decision matters, minute it.

Common pitfalls (and how to avoid them)

These issues often lead to audit queries, delayed lodgements, and extra costs.

Pitfalls we see often

  • Investment strategy is outdated, generic, or doesn’t match what the fund actually holds.
  • No trustee minutes for key actions (pensions, contributions decisions, major purchases/sales).
  • Missing contract notes, missing statements, or transactions that don’t reconcile to bank accounts.
  • Related-party transactions not documented properly (leases, loans, purchases, in-specie transfers).
  • Asset valuations not supported (especially property/unlisted assets).

What to do instead

  • Update the investment strategy when circumstances change, and minute the review.
  • Use a simple “minutes template” and complete it when decisions are made.
  • Keep contract notes and platform reports — not just screenshots.
  • Document related-party dealings carefully and check compliance before you do them.
  • Keep valuation evidence ready at year-end.
Related-party dealings: why documentation matters more
Auditors pay close attention to related-party transactions because compliance conditions can be strict. If your SMSF leases property to a related party, buys/sells from related parties, or has related-party loans, the documentation needs to be clean and complete.

Best-practice checklists

A simple system that keeps your fund audit-ready year-round.

Set-up (once)

Monthly / quarterly routine

If you do nothing else: keep your investment strategy current and minute your decisions. That’s what audits typically get stuck on.

Case studies (good and bad)

Same type of fund. Different admin habits. Very different stress levels at audit time.
Best practiceGood case study: “Strategy matches reality”

Trustees review their investment strategy annually and update it after a major life event (retirement approaching). They document the change in risk and liquidity needs, and they minute the decision to move part of the portfolio to more liquid assets.

Bank and platform statements are saved quarterly, and any buys/sells have contract notes attached. The auditor can trace everything quickly.

Outcome: smooth audit, faster lodgement, lower accounting/audit time and cost.

Avoid thisBad case study: “No minutes, no strategy review”

Trustees haven’t updated the investment strategy in years. The fund holds concentrated assets and has started pensions, but there are no minutes documenting decisions or liquidity planning.

Statements are incomplete and some transactions don’t reconcile. The auditor raises multiple queries and the year-end process drags on.

Outcome: delays, extra professional fees, and ongoing compliance risk until the records are fixed.

Official Australian resources

These pages are a good starting point for the rules and expectations.

General information only. This page is not legal or financial advice and does not consider your specific circumstances.

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