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Setting up a SMSF

Setting up a Self Managed Super Fund (SMSF) requires you to follow the correct steps to receive the benefits of SMSF. Here are some of the basics. 

  • obtain s SMSF trust deed
  • appoint trustees 
  • trustees accept, signing a consent to act as trustee 
  • trustee sign the ATO trustee declaration 
  • electing to become a regulated fund 
  • obtain a tax file number (TFN)
  • obtain Australian business number (ABN)
  • establish a separate bank account for the SMSF
  • prepare and implement SMSF investment strategy

Obtaining a trust deed

 
Before your SMSF can build your future retirement, you have to establish the operating rules for the fund by preparing a trust deed. INKOM Wealth Management provides a standard SMSF trust deed to all our clients. This trust deed is flexible and effectively allows your super various investment options as allowed by superannuation legislation. 
 

Appointing trustees 

 
The law requires all superannuation funds to appoint trustees. The trustees must adhere to super and tax laws and are responsible for ensuring effective management of the fund. It’s also expected your trustees will get the best investment advice to grow your investments to fund retirement your ultimate benefit of SMSF. All Fund members must be appointed as trustees. Click here for more on who is eligible to become an SMSF trustee. 
 
This is not to be taken lightly. The SIS Act requires all trustees to agree in writing to be responsible trustees.
 

Signing a trustee declaration

 

 
All new fund trustees along with directors of corporate trustees must make their commitment in a timely fashion. The ATO Declaration confirming they’re aware of their duties and responsibilities must be signed within 21 days after their appointment.
 

Electing to become a regulated fund 

 
To receive tax concessions, SMSF trustees must elect to be regulated under the SIS Act. The trustees must do this within 60 days of establishing their fund. It’s relatively convenient to do so, either filling out an online application or submitting a paper form to the ATO. 
 

Obtaining a tax file number (TFN) 

 
The ATO will also require Trustees must obtain a Tax File Number (TFN) for the Fund. This can also be accomplished online or by completing a hard copy and submitting it to ATO. 
 

Obtaining an Australian business number (ABN) 

 
The Australian business number (ABN) is the identification system for all business-to-government dealings. An ABN can be accomplished online or by completing a hard copy and submitting it to ATO. 
 

Separate bank accounts 

 
Your Self Managed Super Fund must be separate from all other assets. To do this a bank account for the SMSF must be opened. This is a SISA requirement. We help clients establish a separate bank account for each new Self Managed Super. Generally, the main operating account established by INKOM Wealth Management is a Macquarie Cash Management Account. 
 

SMSF investment strategy 

 
This is the hard part. But INKOM Wealth Management investment advisers can help you create a sound strategy utilizing various investment options. The law requires trustees to prepare and implement an investment strategy. They must also review it. The goal is to ensure reaching a well funded retirement for all fund members. Trustees must prepare, implement and regularly review an investment strategy for the Self Managed Super Fund. This helps trustees to make the best possible investment decisions for all members. 
 
As a trustee you must reflect on the purpose of the self managed super as you create your investment strategy.
  • Will implemented investment options allow for members risk tolerance while providing sufficient returns
  • are investments protected through diversification
  • can the SMSF pay benefits to members and cover costs associated incurred by its operation
  • what are the needs of members based on age, income, and retirement needs 
All Self Managed Super Fund decisions must be made according to the SMSF’s investment strategy. 
 
Call now to set up a free no obligation consultation to learn about a SMSF.
 
Click here so INKOM Wealth Management can assist to set up your self managed super funds. 
 
Learn how INKOM Wealth Management can help you with self managed super funds. 
Contact INKOM WEALTH MANAGEMENT about Self Managed Super Funds.
 

 

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