What is an SMSF?
A Self-Managed Super Fund (SMSF) is a private superannuation fund that you run yourself, giving you direct control over how your retirement savings are invested rather than having a large industry or retail fund manage it on your behalf. An SMSF can have up to six members, who are usually also the trustees, or directors of the fund's corporate trustee, responsible for running the fund and complying with superannuation law.
How is an SMSF different from an industry or retail super fund?
With an industry or retail super fund, investment decisions and compliance responsibilities sit with the Trustee Board who control the fund. With an SMSF, the members take on that responsibility directly, they choose the SMSF investments and are legally responsible for making sure the SMSF complies with superannuation law.
Who can be a member of an SMSF?
An SMSF can have up to six members. Each member is generally also a trustee, or a director of the SMSF's corporate trustee, and each needs to meet the legal eligibility requirements to act in that role, including not being a disqualified person under the Superannuation Industry (Supervision) Act 1993.
What are the responsibilities of an SMSF trustee?
SMSF trustees are responsible for complying with the sole purpose test, preparing and regularly reviewing a documented Investment Strategy, implementing investment decisions, keeping accurate records, lodging an annual return with the ATO, and arranging an independent audit each year.
Is an SMSF right for everyone?
An SMSF suits people who want direct control over their super and are willing to take on the compliance responsibilities that come with it. It isn't the right structure for everyone, and whether it suits your circumstances is worth discussing with a licensed financial adviser.
How do you set up an SMSF?
Setting up an SMSF involves selecting a name for the SMSF, deciding on the trustee structure, obtaining the required identification (including a Director Identification Number for a corporate trustee), and executing the trust deed and establishment documents before applying for the SMSF's ABN.
Frequently asked questions
How many members can an SMSF have?
Up to six members under current legislation.
Does an SMSF need a corporate trustee?
No, an SMSF can have either individual trustees or a corporate trustee. A corporate trustee is commonly used for administrative and asset protection reasons.
What ongoing obligations does an SMSF have?
Annual return lodgement, an independent audit, regular review of the Investment Strategy, and accurate record keeping are all ongoing requirements for every SMSF.
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