In a recent online update, the ATO said the Australian Business Register (ABR) has now been updated, enabling SMSFs to add a fifth or sixth member to the fund instead of using the ATO interim process.

“Before you create a fund, or add additional members, it is important to remember that some state and territory laws restrict the number of trustees a trust can have to less than six,” the ATO said.

“As an SMSF is a type of trust, it is important that you seek professional advice to help understand if your SMSF is impacted by these restrictions.”

The increase in the maximum number of members in an SMSF also has flow-on effects for other requirements, such as signing financial statements, according to the ATO. The accounts and statements (an operating statement and a statement of financial position) of an SMSF must be signed by the required number of trustees or directors of the corporate trustee. 

“This number will depend on the number of trustees or directors of the corporate trustee that your SMSF has,” the ATO said.

“For the 2021–22 and later financial years, if there are one or two directors or individual trustees, then all of them must sign the documents.

“If there are three or more directors or individual trustees, then at least half of them must sign the documents.”