Blog & Resources

Steps / requirements of setting up / establishing a Self Managed Superannuation Fund (SMSF).

1.    Ask your accountant and / or financial planner about the pros and cons of having a Self Managed Superannuation Fund (SMSF).

2.    Are there enough funds / assets to make it worthwhile?  The rule of thumb is $200,000 but this may vary depending on your circumstances.

3.    Do you have the time required to manage a SMSF.  They are more time consuming compared to industry and retail superannuation funds.

4.    Are you aware of the requirements of maintaining a SMSF and what the responsibilities of the Trustee are?

5.    Who are to be the members of the SMSF and how many?  This can vary between 1 and 4.

6.    What type of trustee do you wish to use - company (corporate trustee) or individuals.

7.    Execute a Trust Deed.

8.    Appoint a trustee(s), ensuring appropriate minutes have been prepared and signed.

9.    Incorporate a Company (If a corporate trustee is to be used).

10.    All trustee(s) must sign a trustee declaration.

This must be completed within 21 days of the SMSF establishment.

11.    Provide each member with a copy of the operating rules of the SMSF and a Product Disclosure Statement (PDS).

12.    Elect with the Australian Taxation Office (ATO) for your SMSF to be a regulated SMSF.

13.    Apply for a Tax File Number (TFN).

14.    Apply for an Australian Business Number (ABN) and Register for Goods and Services Tax (GST) if this is required, i.e., you intend to purchase a commercial property within the SMSF.

15.    Ensure you meet the residency requirements so that the SMSF will be eligible for the tax concessions.

16.    Formulate an investment strategy.

17.    Open a bank account. 1

8.    Rollover funds from other Superannuation Funds, ensuring that any associated insurance products with the thses funds are maintained / reviewed.

19.    Move insurances if appropriate to your SMSF i.e. life insurance.

20.    Establish recording systems.  This may be as simple as an arch leaver folder. 

Ensure that all documents that you receive and issue in relation to your SMSF are filed.  These may include:

a.    Bank Statements;

b.    Deposit Books;

c.    Cheque Books;

d.    Dividend notices, including notices of Dividend Reinvestment Plans (DRP); e.    Trust Distribution Notices;

f.    Share Purchase contracts;

g.    Share Sale contracts;

h.    Roll over notices;

i.    Insurance premiums notices;

j.    Invoices for professional services;

k.    Australian Taxation Office (ATO) correspondence; and

l.    Australian Securities and Investments Commissions (ASIC) correspondence.

21.    Review the SMSF performance periodically,  this can be done in conjunction with a stock broker; financial planner or accountant. 22.    Ensure that the Financial Statements are prepared on an annual basis.

23.    Ensure that the Self - managed superannuation fund annual return (income tax return) is prepared and lodged on time.

24.    The financial statements will need to be audited prior to the annual return being lodged.