Can I set up a self managed super fund?

You can set up a SMSF if you are over the age of 18 and not a disqualified person.

A disqualified person is a person that:

• has been convicted of an offence involving dishonesty,
• has been subject to civil penalties under the superannuation laws, or
• is insolvent under administration - undischarged bankrupt.

You should also ensure that your individual's and any related entity's tax obligations are up-to-date.

Can I set-up a SMSF if I plan to move overseas?

The SMSF needs to meet the residency test of being an Australian superannuation fund. The test may still be met if all the conditions are met. Please contact us to discuss.

Note that there are serious financial consequence if the SMSF cannot meet the residency test.

How much do I need to start a SMSF?

You will need to determine whether you have enough in super for a SMSF to be cost-effective and achieve your investment strategy. There is no set minimum amount required to set-up a SMSF. It can be the sum of super from up to 4 members. Generally, as your SMSF balance increases, it reduces the relative costs as the fees for SMSF financial and tax compliance and reporting is charged for the SMSF, not on per member basis.

If you are unsure about whether a SMSF is suitable for you, you should obtain financial advice from a licensed financial adviser.

How many members can a SMSF have?

The maximum number of members that can be part of a SMSF is 4. The members of the SMSF need not be related. You can establish a SMSF with your spouse, partner, children, other family members, relatives, friends or a mixture. Each of the individual member balances are tracked and member statements are prepared for each member to satisfy reporting requirements.

Is it possible to have only 1 member?

Yes. A SMSF can have only 1 member. The most common arrangements are:

• two individual trustees, one is the member and the other is a related person, e.g. spouse/ partner.
• a company acting as trustee, where the member is the sole director of the company. No other person is involved.
• a company acting as trustee, where the member is one of only two directors of the company, and the member and the other director are related, e.g. spouse/ partner.

Should a SMSF be set up with individual trustees or company trustee?

Setting up a SMSF with a corporate trustee will mean higher establishment costs due to the costs associated with setting up a new company. Despite the higher establishment cost, it is widely accepted that a sole-purpose corporate SMSF trustee is a superior structure, as the company exist only for the purpose of acting as trustee of a SMSF. The sole-purpose SMSF trustee company does not trade in its own right, and is not required to lodge tax return. The trustee company is also eligible for a reduced ASIC annual fee. See Reasons for corporate trustee.

What if I am currently in a defined benefit fund?

You can set-up a SMSF and rollover you benefits from a defined benefit fund into your SMSF. Prior to any rollover, it is important to obtain financial advice from a licensed financial adviser on the consequences of the rollover - generally, you are worse off.

How long does it take to set-up a SMSF?

Once we are instructed, documentation (and if setting up with a company trustee, the company is incorporatd) are sent to you to sign. The application to the ATO is lodged once the documentation are signed. The ATO can take up to 28 days to register the SMSF. However, it is normally quicker.

Once the ATO registers the SMSF, it is available on superfundlookup.gov.au