It is possible to set up and manage your own superannuation fund, but it is important that you understand and adhere to the strict legislation that governs the operation of such funds.

Under the law, a Self Managed Super Fund (SMSF) must have less than five members and all members must be trustees or directors of a corporate trustee. No member of the fund can be an employee of another member of the fund unless the members concerned are relatives.

Superannuation Law legislation governs your duties as a trustee and makes you ultimately responsible for the operation of such funds. One of your key responsibilities is to formulate and give effect to a written investment strategy that takes account of risk control, diversification, liquidity and the funds ability to discharge it liabilities (eg. pay retirement benefits).

You need to follow a number of administrative procedures to ensure your fund is complying and entitled to the tax concessions that apply.

Your fund must invest for the sole purpose of providing for your retirement. It is possible to invest in a broad range of assets, however it is necessary for these to be consistent with the investment strategy of the SMSF.

How do I establish an SMSF?

We can arrange to prepare a trust deed that takes into consideration your needs and those of any other member of your SMSF. All parties involved must sign the trust deed. You will also be supplied with an Election Notice form, which you need to lodge with the Australian Taxation Office (ATO) in order to be treated as a complying fund. You will then need to apply to the ATO for a Tax File Number and an Australian Business Number for the fund.

We can help?

We can answer any questions you may have regarding superannuation and, if required, arrange the establishment of a superannuation fund that is appropriate to your needs and objectives. We can also provide advice about appropriate investments and assist you with creating an investment strategy, as well as helping you complete any paperwork.

For more information and advice regarding a SMSF, please contact our experienced Financial Planning Team.