The process of establishing a Self Managed Super Fund (SMSF) is often the stumbling block that makes it all too hard for people to go about this venture. However, by following these steps, I hope to make it as easy as possible for you to do. I’ll be taking you through a step-by-step approach on establishing an SMSF.
Arrange for your trust deed to create the fund. This is the book of rules that will govern its operation and then will include rules around acting as a trustee, membership contributions benefit and anything else to do with the fund. The preparation of the book of rules is done by a lawyer who will draft the necessary rules for you. The fund will also be required to appoint fund trustees, which must be consented to in writing. You as a trustee will need to sign a declaration within 21 days of becoming a trustee or director stating that you understand your duties and responsibilities as a fund trustee or director of the corporate trustee.
Establishing the trustee: There are two types of trustees that self-managed superannuation fund can have; a corporate trustee or individual trustee. We recommend the corporate trustee as it provides an ease of transition when members come and go from the self-managed superannuation fund as well as the fact that it makes it a lot easier in handling the affairs of the estate of a sub managed superannuation fund. In the event of the death of a member, a corporate trustee can takeover. This step involves obtaining a company name, which needs to be unique. The name of the superannuation fund however can be far more generic.
Registration of your superannuation fund with the Australian Taxation Office (ATO): The self-managed superannuation fund will require an ABN number, a tax file number and may be required to register for GST, depending on what you want to do with the fund. To register these numbers with the ATO, you need to fill out an application form which can be found online.
Commence Roll Over: Superannuation members will make contact with their current fund managers and arrange for the rollover to be commenced. The fund managers will forward a form to you in whom you will need to complete and return to them. The majority of these fund managers do not put this form online as naturally they do not want to see the money going out of their phones and into someone else’s fund. Hence the reason you need to contact them verbally. See more.
Setting up the bank account within the five days of registering the company and order in the superannuation fund deed, you will have a copy of the company constitution and also a copy of the fund deed. You will take this to your local bank and they will arrange for a bank account established for you. Note that on completing of the forms they need to be as accurate as possible, retail fund managers love nothing better than that. Once the monies are in the bank account you’re on your way to running your own self managed superannuation fund.
It’s important that an investment strategy is prepared that sets out the investment objectives and how you plan to achieve them. In addition, as the fund gets underway, you should give appropriate consideration to the appointment of professionals, including an approved auditor, an accountant or fund administrator, a lawyer and financial advisor. They will be able to assist in a variety of areas, including the ongoing reporting requirements.
Setting up a self-managed super fund gives you the opportunity to actively manage your own super fund and make your own investment choices, but whether it comes with responsibilities and regardless of whether someone takes a more active role within the fund, each trustee or director is equally responsible. More details in site: http://smsfselfmanagedsuperfund.com.au/smsf/