thinking of setting up your own smsf

Do you have a knack of making money on your investments?
Would you like to have more control of the money you invest in superannuation?
Do you want to have one fund for the family?
Have you been thinking about setting up your own self managed superfund (SMSF)?

Before you rush out and start your own SMSF there are the following to consider.

  1.  Do you have time to manage a SMSF?
    1. You will need to continually monitor your investment strategy and adapt it to meet your changing needs;
    2. Able to meet deadlines in respect of your reporting obligations;
    3. Need to keep up-to-date with the forever changing superannuation laws.
  2. Do you know how to set up and run your SMSF?

    1. You may need assistance from an accountant, financial adviser to advise you on the correct structure;
    2. Are you qualified to be a trustee or do you need a corporate trustee?
    3. A SMSF can have a minimum of 2 members and a maximum of 4 member, which must also be the trustees, unless there is a corporate trustee – in which case the SMSF can have one member.
  3. The cost of setting up a SMSF depends how complete it is, the more complex the more it will cost.

  4. The SMSF will need to comply with the ‘Sole Purpose Test’ – the superannuation fund and the assets held in the superannuation fund are used solely to provide benefits to the members during retirement, or the benefit dependants should you or they pass away or become permanently disabled.
  5. The SMSF must be established in Australia. Central management and control must be carried out by trustees residing in Australia. At least 50% of the SMSF’s assets must be held by Australian residents
  6. Obtain a trust deed; this must be prepared by a suitable experience legal professional.
  7. Open a bank account in the names of the funds trustees.
  8. Register the SMSF with the Australian Taxation Office within 60 days of being established. You will need a TFN, ABN. You may also need to register for GST and PAYG Witholding tax.
  9. Prepare an investment strategy – which takes into account the members needs and circumstances. It also sets out the objectives of the superannuation fund.
  10. Be aware of compliance penalties – The penalties have been increased for trustees who do not comply with the SIS ACT and/or Regulations. If mistakes are made in running the SMSF, the SMSF could lose its tax concessions.

As you can see there is a lot to consider!

Therefore it is imperative that before you jump into starting your own superannuation fund, please contact Optima Partners for the correct advice. We can organise for the preparation of the trust deed, preparation of the investment strategy, establishment of a company to act as a trustee. We have financial advisers that can assist if you need financial advice. We can accommodate all you needs and provide the correct advice for what suits you and your particular circumstances.

It is important to also note that if you go down the path of having a corporate trustee, there are additional costs for having a company, each year there are also an annual review fee.

Yes, it can be very confusing, if for any reason you have any questions, please do not hesitate to contact us either by phone on (08) 6267 2200 or you can email us. We will get back to you as soon as possible. We are there to help you every step of the way.


Small photo of Zoi Yannakis



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