Self-Managed Super Fund Setup

Step 1

Do your research or get advice

The first step is to understand your responsibilities and the tasks associated with running an SMSF. We suggest you watch and download and read the following guides including our own “A guide to setting up an SMSF” and the Australian Tax Offices SMSF video’s and the Money Smart Site guides on SMSF’s

Step 2

How much do you need to start an SMSF

The next step to consider, is your starting balance and the number of members in your fund. This will determine whether setting up a fund is viable given your crrent super savings, your employer and personal contributions into super and the ongoing costs involved with an SMSF. There is NO legally prescribed starting amount for an SMSF.

We suggest that $100,000 – $200,000 as a minimum starting balance based on our fees. Find out if your super is in a defined benefit fund before setting up a SMSF.

Step 3

Choose the number of members in your Fund

An SMSF is allowed 1- 6 members, who are related or unrelated. If you are related you cannot be working in the same business.

• An important consideration with family smsf’s ( children and parents), is an exit strategy, if your children decide to form their own SMSF in the future

Step 4

Choose your Trustee

( Individual or Corporate )

Next choose your trustee. We suggest a corporate trustee company, which offers more asset protection, one fee per compliance breach and the flexibility to change members of the fund without a tax impact to the fund and its members. You can also setup an SMSF with the members acting as individual trustees of the fund which is the cheapest option but not necessarily the safest.

Step 5

Setup your SMSF and create your Investment strategy

These are some of the common tasks associated with an SMSF:

• Setup a company to act as trustee of the SMSF
• Create a SMSF Trust deed
• Apply for an ABN / TFN for your SMSF with the ATO
• Open a bank account
• Superstream – Super rollovers via MyGov (conducted by the client) we provide general instructions only
• Review your setup documents to ensure they are compliant

With your investment strategy, identify the asset allocation for your fund, IE: 60% property, 30% shares and 10% cash. Finally, do not forget to include insurance to cover your debts and complete binding nominations so that you can transfer your funds’ assets to your children or to your estate, should something happen to a member of the fund. Next check out our Fee Schedule

Step 06

SMSF ONGOING TASKS ARE THE FOLLOWING

• Complete a Tax return and Audit each year
• Attending to the bookkeeping for your fund (Income/ itemise fund expenses)
• Review your investments and your insurances and update your funds investment strategy and deed if necessary
• Review your binding nominations if your circumstances change