Running a self-managed super fund (SMSF) gives you control—but also responsibility. The Superannuation Industry (Supervision) Act 1993 (SISA) sets out trustee duties, investment rules, and recordkeeping requirements. Simply put: you can’t manage risks you don’t understand.
Why Learning SISA is Essential
- Avoid common mistakes: Misunderstanding duties like the sole purpose test or arm’s length dealings is a major source of breaches.
- Protect retirement savings: Breaches can lead to penalties, lost tax concessions, and remediation costs.
- Spot issues early: Knowing the rules helps you fix small errors before they escalate.
ATO Guidance: Don’t Wait for a Directive
The ATO’s draft Practice Statement (PS LA 2025/D2) explains when it may require trustees to complete education. Waiting for a directive usually means a breach has already occurred. Proactive learning is safer and viewed favourably by regulators.
4 Practical Steps for Trustees
1. Learn from the ATO
2. Test your knowledge
Complete the ATO’s online “knowledge check.” Aim for full understanding—not just a pass.
3. Seek professional advice early
Questions or uncertainties? Get guidance promptly. Early advice can prevent breaches and penalties.
4. Keep records
Document training, advice, and reasons for investment or payment decisions. Evidence of intent matters.
Education is the best risk management tool for trustees. Use the ATO resources, complete knowledge checks, document your decisions, and seek advice early. Your fund—and your retirement—will thank you.