SMSF record-keeping requirements: what to keep, and for how long

Trustees are legally responsible for keeping accurate records of every SMSF transaction and decision. The retention rules are in section 103 and section 104 of the SIS Act, and the ATO will ask to see them on review or audit.

Records you must keep for at least 5 years

• Accurate accounting records that explain the fund's transactions and financial position
• Annual operating statement and statement of financial position
• Copies of the SMSF Annual Return and lodgement confirmations
• Copies of any other ATO returns or statements (TBAR, PAYG, BAS where relevant)
• Records of all changes in trustees, members, and beneficiaries

Records you must keep for at least 10 years

• Trustee minutes and resolutions
• Trust deed and any amendments
• Records of trustee appointments and removals
• Member consents to act as trustee or director
• Trustee declarations signed by new trustees within 21 days of appointment
• Copies of reports given to members

Investment evidence the auditor will ask for

• Bank statements covering the full year
• Broker statements and dividend statements
• Property title, lease agreements, and rental records
• Independent market valuations of significant assets at 30 June
• Contribution evidence — payslips, salary sacrifice arrangements, BPAY/EFT records
• Pension documentation and minimum payment calculations
• Investment strategy reviewed and signed at least annually

Electronic records are fine

The ATO accepts electronic records as long as they are accurate, true copies of the originals, and able to be retrieved and read. Most modern SMSF administrators (including easySMSF) operate paperless workflows that satisfy this — but the trustee remains responsible for keeping their own copies as well.

Penalties for poor record-keeping

Failure to keep accounting records can attract an administrative penalty of 10 penalty units. Failure to keep minutes, change records, or member reports attracts 5 penalty units. Penalties are applied per individual trustee or per director of the corporate trustee.

Source: Australian Taxation Office — SMSF record-keeping, sections 103 and 104 of the SIS Act (ato.gov.au).