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Setting up a SMSF

SMSF Works can help you set up a new self managed superannuation fund (SMSF) - our SMSF package includes a trust deed, minutes, pro forma binding death benefit nomination forms, product disclosure statement as well as an indexed superannuation folder.

First you need to determine your fund structure - who is going to be the trustee of your fund?

Who can be the trustee of a SMSF?

  • All the members of a SMSF must be a trustee.
  • The trustee can be the individual members or a company where all members must be directors of the trustee company.

EXCEPTION Single member funds

  • If the fund has only ONE member the trustee may be a "single director" company with the member as the single director. Alternatively, the trustee company may have a maximum or two directors (including the member). If the fund has only ONE member and the trustee is NOT a company there MUST be one other individual trustee. The other director or other individual trustee can be a relative OR any other person who is not an employer of the member.

Corporate vs. Individuals

Company as trustee:

  • Cost - Need to establish a company
  • Change of membership - Trustee can operate as a sole director company or add new directors / members without the need to change name of investments holdings
  • Administration - Less work required if a member / trustee leaves the fund as investment records remain unchanged

Individuals as trustee:

  • Cost - No additional cost incurred
  • Change of membership - Must maintain a minimum of two trustees and will require a replacement trustee should a member die or leave the fund through divorce
  • Administration - If a member / trustee leaves the fund, investment records need to be changed to reflect the new trustee composition

Who CANNOT be a member / trustee of a SMSF?

The Superannuation Industry (Supervision) Act 1993 provides that the following persons are DISQUALIFIED from acting as an individual trustee or a director of a corporate trustee:

  • Persons who have prior convictions involving dishonest conduct, wherever or whenever such conviction may have occurred.
  • Persons who are insolvent, bankrupt, or have entered into arrangements, assignments or compositions with creditors under Part X of the Bankruptcy Act 1966 (Cth) or a similar foreign law.
  • Persons in relation to whom a civil penalty order has been made under theSuperannuation Industry (Supervision) Act 1993.
  • Persons expressly declared not to be "fit and proper" persons under section 120A(3) of the Superannuation Industry (Supervision) Act 1993.

Now you have made your decision - what next?

Is a corporate trustee for you? 

You may need to register a new company, or you might already have one. Be aware that a sole purpose SMSF trustee company can only be used for the purpose of acting as a SMSF trustee and the ASIC annual lodgement fee for this type of company is much less than for a normal company. SMSF Works offers a company formation service, if required refer to Fees and Documents.

If you are ready to proceed, download our SMSF setup request form.

Something else to consider:

Who is going to complete your fund's annual accounts and audit? If SMSF Works is your nominated service provided you will need to complete the appropriate trustee disclosure form. This will provide us with the necessary authority to make application for the fund ABN, TFN and election to become a regulated superannuation fund.

Contact us today to speak with an SMSF specialists about establishing a new fund, or to take over from an existing SMSF, click here.