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Safeguarding SMSF Crypto Investments: Scams, Losses, and Best Practices
 
 
   

SMSF Record-Keeping: What Trustees Must Know ?

News | Mansi Sharma | Released: 25/02/2026 | Read: 5 Mins

 

What would happen if, during an audit or ATO review, your client is unable to produce the required records? 

 

As an accountant, it is your responsibility to ensure your client understands their record-keeping obligations and the consequences of non-compliance as per Section 303 of SIS Act. 

 

This newsletter outlines the relevant legislative provisions, case law relating to record-keeping, together with the associated legal obligations and potential implications of non-compliance, in detail.

 
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Financial & Accounting Records: Retained for 5 Years
   
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Sections 35AE, 35B and 35C of the Act are the relevant section(s) that governs financial & Accounting records. Records are set below:

 

  • Financial Records – Complete and accurate records of all transactions.
  • Benefit Payment Records – Documentation of trustee decisions regarding member payments (pension, lump sum, or both).
  • Transfer Balance Account Reports: Copies of all TBARs lodged with the ATO.
  • SMSF Annual Returns – Copies of lodged returns, supporting workpapers, and ATO correspondence, including evidence of income, deductions, capital gains/losses & tax calculations.
  • Regulatory Statements & Notifications-Copies of  reports lodged with the ATO.
  • Condition of Release Documentation – Evidence that any early access to benefits met a valid condition of release.
   

Trustee/Governance records: Retained for 10 Years
   

 

Sections 103, 104, 104A and 105 of the SIS Act require SMSF trustees to maintain proper governance records for at least 10 years. These include:

 
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In Fitzmaurice and Commissioner of Taxation [2019] AATA 2217, the Tribunal considered serious SMSF compliance breaches, including record-keeping failures under the SIS Act. 

 

Facts (in brief):Trustee failed to produce Invoices and supporting expense documents, Lease agreements, Market valuation evidence, Proper accounting records, No supporting documentation for property works undertaken by the fund, Inadequate documentation of related-party arrangements, No up-to-date market valuation of the fund’s primary asset, Incomplete historical records and even where documents were reportedly lost (e.g. fire), no adequate reconstruction efforts were made

 

 

Key lesson: Improper or incomplete records are not a minor administrative issue — they expose trustees to disqualification, penalties, audit scrutiny and potential fund non-compliance  identified under ss 35AE, 35B, 35C and 103–105 of the SIS Act.

 

Solution: Trustees must maintain contemporaneous documentation, retain electronic backups, obtain independent market valuations, properly document related-party transactions, and promptly reconstruct any lost records. Robust governance and disciplined record retention are essential to protecting both the fund and the trustee.
   

Best Practices 
   
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  • Maintain Detailed and Dated Records.
  • Secure and Accessible Storage.
  • Use a Document Management System.
  • Digitise Records Where Possible.
  • Conduct Regular Record Reviews.
  • Stay Updated on Regulatory Changes 

 

 
   
   
   

Cryptocurrency SMSF and Digital Asset
   
   

Visit www.trustdeed.com.au for more details or call us on(02) 9684 4199
   

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