Who must maintain SMSF compliance with the sole purpose test (s 62)?
The applicability test for Maintain SMSF compliance with the sole purpose test (s 62) (ATO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has an SMSF.
What the obligation is
SMSFs must be maintained for the sole purpose of providing retirement benefits.
Section 62 of the SIS Act requires SMSFs to be maintained solely for one or more core or ancillary purposes — primarily provision of retirement benefits. Pre-retirement benefits to members, related party transactions outside the rules, and asset use by members (e.g. collectibles, residential property) breach the test.
The applicability test
Applies when the business has an SMSF.
How the regulator frames it: SMSF trustees.
What triggers it: Operating an SMSF.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (34 of 35: depends on size or structure; 1 of 35: no).
| Industry | Answer |
|---|---|
| Real estate agents | Depends on size or structure |
| Accountants & bookkeepers | Depends on size or structure |
| Lawyers & solicitors | Depends on size or structure |
| Conveyancers | Depends on size or structure |
| Trust & company service providers | Depends on size or structure |
| Precious metals & stones dealers | Depends on size or structure |
| Fintech (non-bank) | Depends on size or structure |
| Banks & ADIs | Depends on size or structure |
| General insurers | Depends on size or structure |
| Credit licensees & mortgage brokers | Depends on size or structure |
| Aged care providers | Depends on size or structure |
| NDIS providers | Depends on size or structure |
| Health practitioners | Depends on size or structure |
| Medical devices & therapeutic goods | Depends on size or structure |
| Private health insurers | Depends on size or structure |
| Cafés & restaurants | Depends on size or structure |
| Hotels, pubs & licensed venues | Depends on size or structure |
| Retail trade | Depends on size or structure |
| E-commerce & online retail | Depends on size or structure |
| Construction (residential & commercial) | Depends on size or structure |
| Manufacturing | Depends on size or structure |
| Agriculture, forestry & fishing | Depends on size or structure |
| Mining & resources | Depends on size or structure |
| Road transport & logistics | Depends on size or structure |
| Aviation (incl. drones) | Depends on size or structure |
| Maritime & ports | Depends on size or structure |
| Education — registered training orgs | Depends on size or structure |
| Education — higher education providers | Depends on size or structure |
| Software & SaaS | Depends on size or structure |
| Professional services (general) | Depends on size or structure |
| Charities & not-for-profits | Depends on size or structure |
| Telecommunications carriers / CSPs | Depends on size or structure |
| Media & publishing | Depends on size or structure |
| Gambling & wagering | Depends on size or structure |
| Superannuation trustees | No |
Business structure and size
| Structure | Answer in the 34 industries it can reach, any size | Engine's reason (real estate agents, 6–19 employees) |
|---|---|---|
| Sole trader | No | Requires an SMSF |
| Partnership | No | Requires an SMSF |
| Trust | No | Requires an SMSF |
| Pty Ltd company | No | Requires an SMSF |
| Public company | No | Requires an SMSF |
| Not-for-profit (unregistered) | No | Requires an SMSF |
| Registered charity | No | Requires an SMSF |
| Super fund | Yes | Self-managed super fund |
| Foreign company | No | Requires an SMSF |
Size does not change the answer in the 34 industries it can reach: at every size band the answer is "depends on size or structure".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Super fund in real estate agents with 6–19 employees, turnover $1M–$3M: applies. Self-managed super fund.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires an SMSF.
What you must do, and when
- When due
- Continuous.
- Frequency
- Ongoing
- Evidence to keep
- Investment strategy, valuation evidence, related-party transaction documentation, collectibles compliance for in-house assets.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Loss of complying status; non-arm's length income taxed at 47%; trustee admin penalties; potential disqualification.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so does this one: the engine uses the same rule for each.
What usually applies alongside it
Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:
Where it sits in the corpus
Rules Mate tracks 9 published obligations tagged "super", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 2 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Taxation Office.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
SIS Act: Federal supervision of superannuation.
Free tools that help with this obligation:
Questions
- Who must maintain SMSF compliance with the sole purpose test (s 62)?
- Applies when the business has an SMSF.
- Do sole traders need to maintain SMSF compliance with the sole purpose test (s 62)?
- No. Looking in the 34 industries it can reach and every size band, the engine's answer for a sole trader is: no.
- Do businesses with 1–5 employees need to maintain SMSF compliance with the sole purpose test (s 62)?
- Depends on size or structure (1–5 employees, turnover $100K–$1M).
- When is "Maintain SMSF compliance with the sole purpose test (s 62)" due?
- Continuous.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.