What to do when a Trustee become a disqualified person

Written by admin , Posted in SMSF Guidance

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.

 

 

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