Establishing a Superfund

What is a self managed superannuation fund?

A self managed super fund is a superannuation fund that has less than five members and where each member of the fund is required to act as a trustee. This means that the members are not only responsible for making all the investment and operational decisions for their fund, but are also ultimately responsible for ensuring their fund is run and maintained in accordance with a range of strict legal and regulatory requirements.

How to set up a self managed superannuation fund

The proper establishment of a SMSF is an important part of running a complying SMSF as it creates a solid foundation for the fund right from the beginning. Members should be fully involved in the process and know why each step is being taken as an important part of learning about their fund, the superannuation rules in general and their responsibilities as trustee.

Some of the suggested steps required to set up a SMSF are as follows:

1. obtain a trust deed
2. choose a trustee(s)
3. sign a trustee declaration
4. lodge an election with the regulator
5. nominate members
6. provide notices to each member
7. apply for a tax file number (TFN), and an Australian Business Number (ABN)
8. open a bank account.