An SMSF trustee becomes disqualified person
There are consequences when a trustee of an SMSF becomes a ‘disqualified person’. Trustees include directors of a corporate trustee of an SMSF. If you are a trustee and become a disqualified person, you are not allowed to remain a trustee.
Removing yourself as a trustee
If you become a disqualified person you need to:
- remove yourself as trustee and inform the ATO immediately
- transfer your superannuation interest out of the SMSF
When you have resigned as a trustee, you must complete the Change of details for superannuation entities (NAT 3036) form (HERE) and send it to The ATO within 28 days of the change.
If you are a director of a corporate trustee, you may also have obligations to inform the Australian Securities & Investments Commission (ASIC).
If by doing so the fund no longer meets the definition of an SMSF, it may need to be restructured to meet the requirements of a regulated super fund or be wound up.
Structuring your SMSF
Effectively, your SMSF has six months after you resign as a trustee to restructure itself so that it continues to meet the definition of an SMSF – generally, this will mean rolling your super interest out of the fund.
The other trustees or directors can:
- roll over your benefits to another complying super fund
- appoint an approved trustee who has a licence from APRA (that is, become a small APRA fund)
- wind up the fund by rolling all members’ benefits out of the fund.