5 Steps To Setup Your SMSF

SMSF Setup Step 1: Determine your trustee structure

Each member in an SMSF must either be a trustee or a director. You can choose from an individual trustee structure or a corporate trustee structure. If you choose an individual structure, you need at least two members. If there is only going to be one member, then you must choose a corporate trustee. We take care of everything to do with incorporating the company prior to setting up your SMSF.

SMSF Setup Step 2: Receive your SMSF documents

Your SMSF establishment pack will contain:

• Your SMSF trust deed
• Application for SMSF membership, including the provision of tax file numbers and personal details for each member
• Minutes for the initial meeting held by the trustees
• The election by the fund to be a regulated fund by the ATO, and the ABN and TFN application form
• An Investment Strategy for the fund
• Nomination of Beneficiary forms to ensure your instructions for the balance of your members benefits are noted
• Trustee declarations

The establishment process can take you up to 30 days as the ATO takes anywhere from 7–28 days to provide the SMSF’s ABN number. We process the documents as quickly as we can for you!

SMSF Setup Step 3: Setup your SMSF’s bank account

Choose a bank to setup an SMSF bank account with. This will be your fund’s everyday transaction account for receiving and paying money. We aren’t aligned with specific banks but can provide recommendations based on your situation and needs.

SMSF Setup Step 4: Rollover your existing superannuation and start contributions

Once we provide you with your new SMSF ABN, contact your existing superannuation provider and request rollover forms. Complete these forms to facilitate the transfer of your superannuation money from your existing provider to your new SMSF bank account.

Alternatively, if you’re ready to make in-specie contributions (contributions to your fund in the form of non-monetary assets) and/or cash, you’re ready to go!

Helpful Hint for Your SMSF Setup

Review the insurance cover you have with your existing super fund provider before rolling all of your super monies into your new SMSF. An SMSF can hold an insurance policy on your behalf but you most likely won’t be able to take the policy with you from your previous provider. You will need to establish a new life insurance policy and you don’t want to be stuck with no insurance cover!

SMSF Setup Step 5: Define and implement your SMSF investment strategy

Have you finalised your fund’s strategy? Important items to consider when formulating and SMSF investment strategy are:

• The overall investment objective of the fund
• The desired rate of return
• Liquidity
• The risk profile of each member
• The risk profile of the fund
• Diversity of investments and asset classes
• Anticipated time of each member to retirement
• Insurance needs of each member

And That’s How You SetUp An SMSF.

Now that your fund is established and you’ve considered your investment strategy, it’s time to start investing! You can do this on your own or speak to one of our in-house investment advisors who can provide you with proactive advice to grow your super.