I love that the ATO is getting on the front foot as far as education of potential SMSF Trustees. This video should be the first step in educating yourself on what decisions are required to set up and maintain a compliant Self Managed superannuation Fund
Here is a guide to the contents of the video in case you want to skip back to a certain section but I recommend you watch it in full at least a few times. It’s only 2 minutes 20 seconds and it is a structure you may need for 50 or more years! Make the effort and do your research before committing to setting up a SMSF.
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So you’re thinking about starting your own self managed super fund. That’s great — but
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are you aware of what’s really involved?
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Let’s take a quick look at a typical self managed super fund.
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When you first set up you need to • Decide on fund members and trustees;
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• Establish the trust and trust deed; • Set up a bank account,
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• Register with the ATO, • create your Investment strategy,
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• and include a plan for when your SMSF ends
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There’s more to consider once set up including • Rolling over of existing super;
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• Organising employer contributions; • Accepting contributions within limits
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• Making investments without breaking rules; • Regularly reviewing the investment strategy;
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and • Documenting and maintaining records for
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up to 10 years.
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Then, each year you need to • Value assets;
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• Prepare accounts & financial statements, • Appoint a registered Self Managed Super
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Fund auditor; • Lodge the annual return,
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• Pay the Self Managed Super Fund levy; and
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• Any tax that’s due.
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When you start making payments, you need to • Decide if any assets need to be sold;
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• Ensure minimum payments are met each year; and you may also need to
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• Appoint an actuary; • Withhold tax; and
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• Give payment summaries to members as well as the ATO.
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Finally, when the fund is finished you need to
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• Get a final audit; and • lodge your final return;
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plus you’ll also need to • Pay any outstanding tax; and
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• Payout or rollover all of the assets.
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As you can see, there is a lot involved. Before you decide to start a self managed super fund
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you need to consider whether you can manage everything or whether you are prepared to
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pay Self Managed Super Fund professionals to help. But remember, even if you have professionals
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help, SMSF trustees are ultimately responsible for their fund.
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You may want to seek some professional advice to help you decide if a self managed super
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fund is right for you
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For more SMSF information take a look at our other videos — or visit the ATO website at
The video misses out on a few important steps like reviewing existing funds for insurance and deciding to replace them or keep the old fund open with a smaller balance to fund the insurance. This decision must be made and any new insurances arranged before your rollover your balance as the existing cover will be cancelled and you may have a health issue that stops you replacing the cover later. For more info read my previous blog
Are you looking for an advisor that will help you set up your SMSF and keep you up to date and provide guidance and tips like in this blog? Then why not contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
The SMSF Coach 