What is a Self-Managed Super Fund SMSF?
An Self-Managed Super Fund SMSF is a personal superannuation fund that you can set up and manage yourself. As a trustee, you’ll control your investments and ensure compliance with super and tax regulations.
The process to Set up SMSF
Curious about how Perfect Accounting is setting up your Self-Managed Super? Check out these tabs for detailed information.
Determine Eligibility
Before you begin the process of setting up an SMSF, it’s important to make sure that you meet the eligibility requirements. According to the Australian Taxation Office (ATO), to establish an SMSF, you must:
Be a trustee of the fund or a director of a corporate trustee
Have no more than Six members in the fund
Not be an “employee” of another member of the fund
Have a separate Australian Business Number (ABN) and Tax File Number (TFN) for the fund
It’s also important to note that each member of the fund must be a trustee or a director of the corporate trustee.
Once you’ve determined that you’re eligible to establish an SMSF, the next step is to choose a trustee structure. There are two options:
Individual trustees: Each member of the fund acts as a trustee, and all decisions are made jointly by the members.
Corporate trustee: The fund is controlled by a company that acts as the trustee, and the members are the directors of the company.
Both options have their own advantages and disadvantages, so it’s important to consider which one is best for your situation. For example, a corporate trustee can provide more flexibility and continuity in the event of a member’s death or incapacity, but it also involves more administrative and compliance requirements.
Register the Fund
Once you’ve chosen a trustee structure, the next step is to register the fund with the ATO. This involves applying for an ABN and TFN for the fund and completing the necessary forms and documentation.
It’s important to note that the registration process can take several weeks, so it’s a good idea to start the process well in advance of when you plan to establish the fund.
Develop a Trust Deed
A trust deed is a legal document that establishes the rules and governance of the Self-managed super fund SMSF. It sets out the rights and responsibilities of the trustees, the fund’s investment strategy, and the rules for winding up the fund.
It’s important to have a professionally drafted trust deed that complies with the Superannuation Industry (Supervision) Act 1993 (SISA) and the Superannuation Industry (Supervision) Regulations 1994 (SISR).
Establish Bank Accounts
Once the fund is registered, you’ll need to establish separate bank accounts for the fund, including a cash account and a clearing account. The cash account is used for depositing contributions and paying expenses, while the clearing account is used for buying and selling assets.
It’s important to note that all transactions in the SMSF must be conducted in the name of the fund, and not in the name of the trustees or members.
Once the fund is established and the bank accounts are set up, you’re ready to start investing in assets. However, it’s important to keep in mind that the investment strategy must be consistent with the fund’s objectives and must comply with the SISA and SISR.P
We’re here to help
Struggling to navigate the world of SMSFs? Look no further! At Self-Managed Super Fund SMSF Solutions, a part of Perfect Accounting, we’ve got you covered. We offer a comprehensive range of services tailored to your specific SMSF needs, including administration, compliance, accounting, and taxation. Let us guide you through the setup process and ensure your fund is running smoothly.
- Assisting in understanding the implications of having a SMSF
- Establishing a SMSF & obtaining tax benefits
- Monitoring contributions & transfers into a fund
Market value updates of investments - Financial reporting requirements & obligations
- Deed upgrades
- Compliance & administration
- Accessing funds & wind-ups
OUR SELF-MANAGED SUPER FUND SMSF SERVICES
FREQUENTLY ASKED QUESTIONS
Yes, we have been providing all services remotely for many years. Our systems and processes make the delivery of remote services easy, even for people who are not quite tech-savvy. However, the services of The Perfect Accountant are personal and you will speak directly with the Australian professional who is looking after your ongoing SMSF administration and compliance needs.
Once you have made the decision to started with a Self-Managed Super Fund SMSF, you may consider the cost-saving package for a complete SMSF setup offered by The Perfect Accountant.
The Perfect Accountant can take care of ongoing SMSF accounting, administration, and compliance requirements at reasonable rates. Fixed fees for services help reduce costs to the SMSF and provide greater predictability with budgeting and forecasting.
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