SMSF Checklist – Tips from Accounting Experts in Victoria Park
Today we are looking at what you need to have in place, so you are able to set up a self-managed super fund (SMSF).
While cases and circumstances may not always be the same, here are the necessary steps to take:
Decide on Trustees
The first thing you need to do is decide on the trustees. You can either choose to use individual trustees or a corporate trustee. Either way, you can only have a maximum of four members. All members of the fund must be trustees.
If you are looking to create a single member fund, you will need to ensure you find another person to act as a trustee. It can be a relative but cannot be an employer.
If you choose to create a corporate trustee, each member must be a director of the company
If it’s a single member fund, you can act as the sole director of the company
Execute a Trust Deed
The second thing you would need to do is execute a trust deed. This must be prepared by a solicitor and it must be signed and dated by the trustees for it to be executed.
The trust deed sets out the rules for your SMSF and if drafted properly, the fund will be eligible for tax concessions, making superannuation a great investment medium.
The Trustee Declaration
Once that is done, it would be time to begin step 3 – signing a Trustee Declaration. This will need to be signed by each trustee and done within 21 days of establishing the fund. It can be obtained from the ATO but ideally should be given to you by legal document providers when purchasing SMSF document packages.
The ABN/TFN
The next thing you would need to do is Obtain an ABN/TFN. This is required for the SMSF and the application will include registering as ATO regulated funds. The application would need to be submitted within 60 days within the trust deed. These registrations are required to allow contributions/rollovers to the SMSF
Then, you will need to create a register. This is required and allows to record formalities such as meeting minutes, detailed investment strategies and more.
A bank Account
The next step will be opening a bank account by the trustees, using the same name as the SMSF. The trustees will need to provide a signed copy of the SMSF deed and pass an identity check to ensure the bank account exist and can accept contributions.
The SMSF will only begin when a contribution has been deposited into the account and a contribution should be made as soon as possible to ensure the fund remains compliant
Next step would be to implement an investment strategy, one that takes into consideration the needs of all members.
Annual audit and tax return
The fund would need to be audited annually so you would need to engage with an accountant, to be more specific, an SMSF approved auditor.
While there’s many details you would need to ensure you have in place, having an SMSF can result in a great outcome. For any further question feel free to reach out to us at Eventum consulting and we will be glad to help.