How to set up an SMSF

Setting up a self-managed super fund

As the name suggests, a Self Managed Super Fund is a super fund managed by individuals themselves. You will be the trustee of your SMSF and will need to comply with the relevant tax laws which govern the operation of this type of fund.  The sole purpose of an SMSF is to provide retirement benefits for its members. The Self Managed Super Funds are heavily regulated by ATO and ASIC. Whether the super funds are beneficial for you or not, depends on your knowledge and circumstances. Find more information about setting up an SMSF in this article.

How to set up a self-managed super fund

Here are some important steps you need to take when setting up your SMSF.

  1. Trustees - You can have four members in an SMSF. These members can be either individual trustees or a company acting as a corporate trustee. 
  2. Trust deed - Trust deed is a document listing the members, trustees, rules, investments, contributions, and wind up. The trustees need to sign and date the document and ensure that it is executed correctly under the law. 
  3. Assets - To establish the trust, the fund needs to have assets until the benefits rollover or the trustees make contributions. 
  4. Trustee declaration - This declaration ensures that the trustees understand their duties and responsibilities. It needs to be signed within 21 days of becoming a trustee or director. The trustee declaration must be kept safely as the ATO might ask you to furnish it. 
  5. Register with ATO within 60 days of establishing the fund. Your SMSF needs to be registered to the Australian Business Register and when receiving tax benefits, you need to select “Regulated by ATO”. The fund also needs to be listed on the “Super Fund Lookup” so that other employers and funds can check the eligibility of your fund receiving rollovers or contributions. You will also need to register with an SMSF messaging provider before you can receive contributions. If the fund has an annual turnover of more than $75,000, it would need to be registered for GST. 
  6. Tax file numbers of all the members are required to receive contributions and avail tax benefits.
  7. Open a bank account to receive income and contributions.
  8. Prepare an investment strategy that lists out the objectives and investments needed to achieve the goals of your fund. 

In a nutshell, SMSF is tax-effective, offers more control over your investment and protection against financial risks like bankruptcy. However, they require in-depth knowledge of investment principles, regulations set by the government, and time.

Even though the SMSF can be managed by a professional, the responsibility would still be yours.  Whether SMSF is a good option for you or not depends on your circumstances like knowledge, time, the assets you want to invest in, and your current super balance. 

If you have any further questions regarding SMSFs and if they are a suitable arrangement for your needs, give Bottom Line Control Sunshine Coast accountants a call on (07) 5471 7077 and we can discuss all the options with you.

Comprehensive SMSF Services on the Sunshine Coast

Although SMSF is also called Do-It-Yourself Super, it is not so easy to do it. Setting up SMSF can seem intimidating, however, our SMSF advisers at Bottom Line Control can make the process easier for you. We provide comprehensive SMSF services - set up, administration, and compliance (preparing end of year accounts, fund’s tax returns and audits). For the very best in Self-managed super fund setup, auditing, and investment assistance, contact our experienced team on 5471 7077 or complete our online appointment request form today.

References: https://www.ato.gov.au/Super/Self-managed-super-funds/Setting-up/

Accountant & Bookkeeper Reviews

Bottom Line Control Reviews

1
5
/5
6
 Reviews

Bottom line Control, headed by Malcolm Chilman, have been by tax agent/accountant/book keeper for more than 10 years now, and I have nothing but praise for the efficient and cost effective way they go about their work. I have recently given them my SMSF as well and am impressed by the meticulous way he goes about the process of staying within the lines of the over-complex Superannuation law. Whether it is simple BAS bookkeeping or complex questions of tax law, Malcolm is always there to help. And if he does not know some intimate detail of our almost incomprehensible tax process, he knows where to find the answer. Every business has the occasional need for a quick answer, so one of the characteristics that I appreciate here, is Malcolm's ready availability, by phone and email.

PA Apartments - Business Accountant Client

Byron Scott

PA Apartments

Business Owner & Investor

40 Wholseley St, Woolloongabba, Qld 4102

Phone: (07) 3891 1742 | Email: info@PAapartments.com.au

Thank you for your support, and assistance over the past several years. I personally feel that from our cooperative services that Ram Automotive has been able to grow toward the sustainable company of which is today. Bottom Line Control has given myself a great understanding of the companies finances, and also through ongoing fiscal performance meetings. Now knowing what Ram Automotive can expect for the future. I look forward to an ongoing relationship with Malcolm and Bottom Line control, to secure our future within our community.

PA Apartments - Business Accountant Client

Matthew Katterns

Ram Automotive

Proprietor of Ram Automotive Coolum Beach

We changed all of our financials over to Bottom Line a few years ago and have been quite impressed with the service and advice we have received. Nothing is too much to ask of them. Thank you to Malcolm and staff for being there for us.

PA Apartments - Business Accountant Client

Wayne & Penny Rex

Rex and Turtle

Business owners and Property Developers

We switched to Bottom Line Control after realizing that our previous accountant was giving us incorrect advice and charging a premium for it. We have now been using Bottom Line Control for several years and have found Malcolm to be thorough and reasonably priced. He always finds ways to save money on our taxes. Malcolm and his staff are highly responsive and very easy to work with. We highly recommend.

PA Apartments - Business Accountant Client

Alex & Rebecca Watson

Equathon Horse Riding

PO Box 301 Noosa Heads, QLD 4567

Phone: (07) 5474 2665

Thanks Malcolm for saving me the stress of sorting through all the issues of self-employment, and the many confusing deductions and tax items associated with that. Although I was extremely late in lodging my tax return, it was not a problem for you, and you managed to get me a healthy refund when I was sure I was going to have a bill! I will certainly be using your services in the future and have already been recommending you to others.

PA Apartments - Business Accountant Client

Kim Anderson

The Anderson Outloook

Freelance Journalis