Take Control of your Super - Setup New SMSF

Step 1: Consider your personal situation

Is SMSF right for you? Remember, setting up your own SMSF is a very big and important decision that might impact your future. If in doubt Contact us and we will get a financial planner contact you.

Step 2: Work out the structure of your fund

You can choose one of the following structures for your fund:

• up to four individual trustees, or
• a corporate trustee (a company that acts as trustee for the fund, where all fund members are directors of the company).

We recommend you discuss your trustee options with an SMSF professional. Contact us and we will get a financial planner contact you.

Step 3: Create your trust and trust deed

A trust is an arrangement where a person or company (the trustee) holds assets (trust property) in trust for the benefit of others (the beneficiaries). A super fund is a special type of trust, set up and maintained for the sole purpose of providing retirement benefits to its members (the beneficiaries).

Once you're ready to start, it's easy to set up your fund. Simply provide us with the key details using our online form, which takes around 5 minutes to complete. We will take care of all the paperwork to help you set up your fund, including the legal requirements such as creating the fund's trust deed. We'll also help with the documents to appoint your fund's trustees.

Step 4: Register with the ATO

Once your fund is legally established and all trustees have signed a trustee declaration, SMSF Simplified will register your fund with the Australian Taxation Office (ATO) on your behalf. We will prepare a notice of election to become a regulated fund and apply for registration for an Australian Business Number (ABN), Tax File Number (TFN) and Goods and Services Tax (GST) (if applicable).

Step 5: Open a bank account for your fund and roll over your super

You need to open a bank account in your fund's name to manage the fund's operations and accept cash contributions and rollovers (transfer) of super benefits from your existing superfund to your SMSF. The money is then invested according to the fund's investment strategy, and used to pay the fund's expenses and liabilities.

A financial planner for a fee can assist you setting up a Cash Management Account. They can also assist with transferring your existing super from your other funds into your SMSF.

Step 6: Prepare an investment strategy

Before you start making investments, you need to have a written investment strategy.
Your investment strategy provides you and the other trustees with a framework for making investment decisions to increase members' benefits for their retirement. It should be in writing so you can show your investment decisions comply with it and the super laws.

A financial adviser, for a fee, can help you prepare an investment strategy, but you and the other trustees are responsible for managing the fund's investments. You can also refer to the ASIC consumer website at www.moneysmart.gov.au about preparing an investment strategy and helpful tips on investing.

Step 7: Insurance

If you set or join an SMSF, you'll also need to consider whether you have adequate insurance in your SMSF, in case you die or are unable to work because of an illness or accident.

An insurance broker to help you with life insurance, total and permanent disablement (TPD) and income protection solutions.

Step 8: Take control of your super

Start investing and, guided by your investment strategy, decide where and how you will invest your super money. SMSFs generally have a mix of cash, term deposits, direct equities, managed funds and property. If you want advice in these or other areas, contact us and we can arrange for a financial planner to assist you. Click here for more info on “Managing your Self-Managed super fund’s investment”

Step 9: Manage your SMSF

As SMSF compliance can be complex, managing your own super is a big responsibility. There are strict rules that govern how you can use a self-managed super fund (SMSF). Our annual fixed fee packages make administration and compliance of your Self Managed Super Fund simple and cost effective that enables you to focus on investing and tracking your super balance, while we help you take care of the day-to-day running of your fund and compliance.

Step 10: Keep an eye on SMSF rules

As a trustee you have certain responsibilities. It's important to stay on top of changes in regulations as these changes may impact your trustee responsibilities.