Self-managed Superannuation Funds (SMSFs) are like other super funds, which will allow people to manage their own superannuation investments. One is responsible for running their SMSF in accordance with the law and is required to report to the Australian Taxation Office (ATO) on its operation. All SMSFs are trusts and one must have the following to create a trust:

  • Trustees;
  • A Trust Deed;
  • Property;
  • Identifiable beneficiaries; and
  • The intention to create a trust.

Owen Hodge’s team of Sydney-based superannuation lawyers can help you set up and get the most out of a self-managed superannuation fund.

Trust Deed

A Trust Deed is a mandatory legal document, which sets out the rules for establishing and functioning of the fund. A Trust Deed in accordance with the super laws forms the fund’s governing rules and detailing the following:

  • Powers, duties and responsibilities of the fund’s trustees;
  • Rights of the members; and
  • Detailing the operations of the super fund.

Advantages Of A SMSF

Setting Up A SMSF

Following are the advantages of a SMSF:

  • Flexibility in tax planning on investment income and capital gains;
  • Better flexibility in investment choices and asset selection;
  • Better governing power on total investment portfolio along with the ability to take account of the risk profile of all the assets, *Including those held outside super;
  • Ability to collate capitals from up to 4 fund members having similar financial objectives, such as family members;
  • Maximum flexibility in creating and handling pensions, including account based, transition to retirement and term allocated pensions;
  • Better flexibility on accessing Centrelink benefits, such as the age pension;
  • Investments in direct property;
  • Personally owned listed shares, business real property and managed funds can be directly transferred into a SMSF; and
  • To assist the business cash flow, one can own business real property in a SMSF.

Setting up a SMSF involves key decisions about how to structure and run a SMSF. The following are the steps involved in establishing a SMSF:

  • Appointment of a SMSF professional to help in setting up and running of the fund is strongly recommended;
  • Choose which trust structure to use for the SMSF;
  • Ensuring all the members are eligible to be trustees;
  • Creation of trust and trust deed;
  • Appointment of trustees;
  • Keeping records of each member’s tax file number;
  • Opening of a bank account for the SMSF;
  • Registration of the SMSF with the ATO; and
  • Preparation of the SMSF’s investment strategy.

Contact our superannuation lawyers in Sydney today for advice and assistance setting up a self-managed superannuation fund.

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