How Long Do SMSF Records Need to Be Kept?

Generally, SMSF records must be kept for at least ten years, and accounting records for at least five years. However, from a practical perspective trustees are much better off keeping records permanently in digital format.

SMSF Records

SMSF records include the establishment documents such as the fund’s trust deed and governing rules, as well as any updates or variations. Minutes/resolutions of the trustees explaining how a decision was made. Changes of trustees and consents to act. From 1 July 2007, a trustee/director is required to acknowledge and sign an ATO trustee declaration.

Other important member records which should be kept include:

• application for membership
• death benefit nominations
• pension commencements, pension commutations and nominating a reversionary pension beneficiary

Generally, SMSF records must be kept for at least 10 years. The starting point for keeping those records may vary depending on the document; for example, records for a trustee’s meeting or a change of trustees are from the date of the meeting. The ATO trustee declaration is kept while the person is a trustee or director, or for 10 years if not. Similarly, member statements or reports to which a member is entitled under the fund’s governing rules must be kept while the person remains a member of the fund. The fund’s SMSF deed and other documents created during the SMSF Setup process should be kept permanently until the fund is wound up.

Accounting Records

All SMSF accounting records must be kept in English, written (or capable of being converted into writing) and kept in Australia. Accounting records must be recorded correctly and kept in a way that explains the underlying transaction and allows the proper auditing of those records.

Penalties for failing to keep accounting records may be imposed by the ATO. An administrative penalty of up to $3,640 may apply, depending on the severity of the breach. In very extreme cases, a trustee could be subject to court-imposed penalties of $36,400 (based on the penalty unit rates from 1 July 2026) or $18,200 under the criminal code.

What can accounting records contain?

Accounting records include the fund’s annual financial position and operating statement, which have been signed by the trustees/s, as well as the records supporting the underlying transactions. The accounting records must enable the SMSF annual return (which includes the fund’s tax return and member statements) to be prepared.

Other accounting records can include:

• a copy of the fund’s annual return, transfer balance account reports (TBAR) and GST returns
• valuation of fund assets at the end of the financial year as well as other times such as starting a pension or when a member dies
• details of the acquisition and disposal of fund assets to determine the capital gain tax liability
• income and expense invoices and statements
• actuary reports calculating the exempt current pension income percentage
• lease agreements
• member payments, i.e. rollover benefit statements. lump sums, pension documents
• copy of the financial statements of investments in private companies or trusts

Generally, accounting records must be kept for five years from the end of the financial year in which the transaction occurred. However, if the SMSF has a tax loss or a net capital loss, the time frame may be extended. From 1 July 2024, an SMSF has 4 years (previously it was 2 years) in which it can amend its tax return, which can affect the timeframe for keeping accounting records.

Can I keep my SMSF’s records electronically?

The ATO have issued a tax ruling on electronic records, TR 2018/2. Generally, records stored electronically can be used as supporting evidence. Electronic records must be readily accessible and understandable to SMSF auditors and the ATO. Scanned electronic records are acceptable provided they are a clear and true reproduction of the paper record.

The 5- and 10-year designations above are the minimum time the records must be kept and as mentioned, practically we always recommend clients keep digital records permanently for the fund given the ease of doing so and practical benefits in the case of a future issue.