Why You Should Revise Your SMSF Trust Deed Every 5-10 Years
When you set up your Self-Managed Super Fund (SMSF), the trust deed outlines the rules governing how the fund will be managed. But it’s not a one-and-done document.
Over time, the law changes, and so do your circumstances. If your trust deed hasn’t been reviewed in years, it may be holding your fund back, or worse, putting it at risk of non-compliance.
Your Trust Deed Must Keep Up with the Law
Australia’s superannuation system doesn’t stay still for long. Every few years, reforms are introduced that affect how your SMSF can operate. These include:
- Contribution caps and eligibility
- Pension commencement and minimum drawdowns
- Transfer balance caps and indexation
- Taxation of benefits and fund earnings
- Conditions of release
- Death benefit nominations and payments
If your trust deed doesn’t reflect the current rules, your fund may not be able to take advantage of newer strategies or may even breach the SIS Act or Regulations without realising.
The Risks of an Outdated Deed
If your deed was last updated before:
- The 2017 super reforms
- The introduction of transfer balance caps
- The Hill v Zuda decision on death benefit nominations
- Or even newer updates to investment flexibility
…then it may be outdated.
Common problems with older deeds include:
- Preventing the fund from implementing tax-effective strategies
- Restricting access to newer pension options or contribution types
- Conflicting with current legislation, triggering audit red flags
- Failing to recognise newer asset classes like cryptocurrency
- Invalid death benefit nominations due to outdated wording or limitations
In some cases, a fund can’t take advantage of new strategies because its deed simply doesn’t allow for them, regardless of what the legislation permits.
A Strategic Tool, Not Just a Compliance Obligation
A well-drafted, modern trust deed allows your SMSF to respond to change, whether that’s legislative reform, evolving investment preferences, or changes to your family or financial situation.
At Sharp Accounting, we recommend reviewing your deed every 5-10 years or sooner if there’s a significant change to superannuation law, your fund structure, or estate planning arrangements.
If your trust deed hasn’t been updated in a while, it could be limiting your fund’s flexibility or creating avoidable compliance risk.
We can help review it in plain English and ensure it supports the way your SMSF operates today. Get in contact.