“To enable SMSFs to take advantage of potential cost savings, the record-keeping requirements have been updated to allow records to be kept electronically. Records kept electronically must be easy to access and verify,” the ATO stated.

“Good record-keeping helps keep track of the fund’s operations and may also reduce the time and cost of the annual SMSF audit. Accurate financial and administrative records help SMSFs to take account of investments, prove entitlement to deductions and work out capital gains and losses.”

The SMSF Academy’s Aaron Dunn noted there are several sets of SMSF records that are required to be maintained for a minimum of five years.

These include accurate and accessible accounting records, an annual operating statement and an annual statement of an SMSF’s financial position and copies of all SMSF annual returns lodged.

Other records, including copies of all reports given to members and members’ written consent to be appointed as trustees, need to be maintained for a minimum of 10 years.