What is a SMSF? (top)
A SMSF (Self-Managed Super Fund) is a small DIY (do it yourself) superannuation fund, that is regulated by the Australian Taxation Office (ATO). The members of a SMSF have the power to control all investment decisions and the operation of their superannuation.
Is a SMSF suitable for me?(top)
There are certain regulatory responsibilities placed on trustees of SMSF, therefore when setting up a fund it is important to consider various issues including:
- Time to manage and administer the SMSF
- Will there be sufficient funds in the SMSF to make the administrative costs worthwhile?
- Will the other trustees of the fund be suitable co-investors?
How long does it take to set up a SMSF?(top)
Once your signed application is received by TIC SMSF Services, it generally takes around 1 week to establish a new fund. Depending on the cooperation of your existing superannuation fund company, this process can be delayed to up to 4-6 weeks.
How much is required to start a SMSF?(top)
Ideally, when setting up a SMSF a minimum of $100,000 is required. If you have more than one member, the total combined assets can be transferred to meet the minimum requirements. If you decide to set up a SMSF with the intentions of purchasing property it may be advised that the start-up funds be a minimum of $200,000.
What funds are used to create a SMSF?(top)
There are 3 ways of transferring money or assets into a fund:
- make a contribution to the fund
- roll over existing superannuation benefits into the fund
- purchase assets by the trustee of the fund
SMSF offers the ability to consolidate your superannuation (if you have a range of super funds). Consolidating your funds saves you money on multiple management fees.
Who can be a trustee of a SMSF?(top)
The trustees need to act as either individual trustees or directors of a company (corporate trustee).In the majority of circumstances we recommend a corporate trustee be appointed to your SMSF
Individual option
- must be 2 or more, with a maximum of 4, individual members
- every member must also be a trustee
Trustee Company
- all members must be directors of company
- maximum of 4 directors to one company
- single director companies permissible
How many members can be included in a SMSF?(top)
A SMSF cannot have more than 4 members and all members must be Trustees of the fund. Therefore, you have a choice as to who becomes a member of the fund (may include your partner, members of your family, a business partner). This means that the super balances of each member can be consolidated into SMSF.
Can employer contributions be included in my SMSF?(top)
Yes. Enjoy the benefits of superannuation choice and instruct your employer to pay your superannuation contributions into your SMSF.
What investments can the fund invest in?(top)
The fund can invest in a wide range of investment opportunities. You, as the trustee of your SMSF, control and formulate your own investment strategy. Investments can be made into:
- Property
- Managed funds
- Shares
Yes, SMSF can invest in real property, both commercial and residential.
Can the fund provide insurance?(top)
Yes, with a SMSF you can organise life insurance as well as total and permanent disability (TPD) cover to insure the members of the fund. The SMSF pays the cost of the insurance and claims it as a tax deduction, which makes the costs of insurance more tax effective.
TIC SMSF Services highly recommend that their members are insured. We can provide optional assistance by recommending a SMSF specialist advisor to discuss your insurance needs.
Are there ongoing costs of a SMSF?(top)
This is an optional service we provide for our clients. We are not directly involved in the preparation of accounts or the auditing process - this service is outsourced to a trusted specialised accounting firm. Compliance fees are paid by the fund. |