Steps to setting up Self-Managed Superfund (SMSF)

Setting up a Self-Managed Superannuation Fund (SMSF) is a significant financial decision that offers you greater control and flexibility over your retirement savings. While it provides opportunities for strategic investment and tailored financial planning, it also comes with important responsibilities and regulatory requirements.

Setting up a Self-Managed Superannuation Fund (SMSF) involves several steps. Below you can find a general guide, but keep in mind that seeking professional advice is crucial for your specific situation.

Here is our Guide to setting up your SMSF

Research and Education:

• Understand the responsibilities and legal obligations of being a trustee.
• Learn about investment strategies, risks, and regulations related to SMSFs.

Trustees:

• An SMSF can have up to four members, all of whom must be trustees or directors of the corporate trustee.
• Individual trustees need to be over 18, and corporate trustees must be a company with all members as directors.

Create a Trust Deed:

• Engage a legal professional to draft the trust deed outlining how the SMSF will be managed and operated.

Appoint Trustees:

• Ensure all trustees sign a trustee declaration within 21 days of becoming a trustee.

Register with the ATO:

• Obtain a Tax File Number (TFN) and Australian Business Number (ABN) for the SMSF.
• Register the SMSF with the Australian Taxation Office (ATO).

Develop an Investment Strategy:

• Create an investment strategy that aligns with your financial goals.
• Consider diversification, risk tolerance, and liquidity.

Open a Bank Account:

• Open a bank account in the name of the SMSF to manage contributions, rollovers, and investments.

Roll Over Super Funds:

• If members have existing superannuation accounts, roll these funds into the SMSF.

Set Up Record-Keeping Systems:

• Implement robust record-keeping systems to comply with reporting requirements.
• Keep financial statements, member statements, and annual returns.

Related: Why accurate Record-keeping is super important

Insurance:

• Consider insurance options for members, as trustees have a duty to consider insurance for members of the fund.

Regular Review and Compliance:

• Regularly review the SMSF's performance and ensure compliance with laws and regulations.
• Submit the annual return to the ATO.

Professional Advice:

• Consult with SMSF professionals, such as accountants, financial advisers, and legal experts, to ensure compliance and sound financial management.

Remember, SMSFs come with significant responsibilities, and staying informed about changes in regulations is crucial. Always seek advice from professionals to ensure your SMSF is compliant and meets your financial goals.

Related: Beginners Guide to Self-Managed Superfunds (SMSFs)

SMSF Services Tailored to Your Needs

If you need assistance with setting up or managing your fund, our SMSF experts can offer a range of advisory and support services. Whether you are aiming to better manage your retirement investments, maximise tax advantages, or stay in line with continually changing regulations, our experienced team will guide you through the entire process. Contact Azure Group's SMSF specialists today.

To learn more about SMSF record-keeping requirements, the types of records that must be kept and for how long, you can also 🎥watch a quick video by the ATO here.

Have you noticed our #FridayExpertTips... here's one that relates to Taxation

“Stay organised this Financial Year: A monthly or quarterly planner can be incredibly helpful to your business, mapping out the due dates of your tax obligations and allowing you to save for larger contributions."

This article is intended to provide general information only, and is not to be regarded as legal or financial advice. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions.  Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.