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SMSF Step-by-Step Set Up Guide

Signing a Contract

Self-Managed Super Fund: Your Detailed Step-by-Step Guide to Setup

Step 1: Establishing the Trust:

Create a Trust Deed:

This legal document outlines the regulations, for establishing and operating your SMSF. It should be customised to comply with requirements, in Australia, including the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Choose Trustees:

Determine whether your SMSF will be managed by trustees or a corporate trustee. Each member of the SMSF must serve as a trustee (or director if a corporate trustee is utilised).

Sign the Trust Deed:

All trustees or directors should sign the trust deed in front of a witness.

Step 3: Setting up a Bank Account

Choose a Bank:

Select a financial institution to open a bank account in the name of the SMSF. This account will be used to manage the fund's operations, including receiving contributions and paying out expenses and pensions.

Provide Necessary Documentation:

You may need to provide identification documents and the trust deed to open the account.

Step 2: Registering the Fund:

Obtain a TFN and ABN:

After the trust is established, register your SMSF with the Australian Taxation Office (ATO). This step is crucial for legal recognition and tax purposes.

Elect to be a Regulated Fund:

Make an election to the ATO to be regulated, which allows your SMSF to receive tax concessions.

Register for GST - if necessary:

If your SMSF has an annual turnover of $75,000 or more from its business activities, it must also register for GST.

Step 4: Creating an Investment Strategy

Assess Members' Needs:

Consider the personal circumstances of each member, including their age, retirement goals, and risk tolerance.

Diversify Investments:

Create a diverse investment portfolio that can include shares, property, cash, and other assets, keeping in line with the fund's investment objectives and risk appetite.

Regular Review:

The investment strategy should be reviewed regularly and adjusted as members' circumstances or market conditions change.

Step 5: Organising Trustee Declarations:

Understand Legal Obligations:

Ensure that all trustees or directors understand their legal obligations and responsibilities under the SIS Act.

Complete a Trustee Declaration:

Within 21 days of becoming a trustee or director, sign a declaration stating that you understand your duties and responsibilities.

Maintain Records:

Keep a copy of this declaration for at least 10 years as proof of compliance.

Ready to Transform Your Retirement?

Each of these steps is critical in the setup and effective management of your Self-Managed Super Fund, ensuring compliance with Australian laws and regulations while aligning with the specific financial goals of the members.

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