There are several steps involved in setting up a self-managed super fund. In addition, this website https://smartersmsf.com/ may be helpful.
The first step of the SMSF is to choose the structure for the trustee. This means that you are going to need to decide if you or the members of the fun is going to be an individual trustee or will you use a corporate trustee. This is going to be a very important decision that you are going to need to make because it is going to impact the steps that you take. Most of the time, it is going to be more common to have individual trustees.
The second step is to obtain a trust deed. This is going to a legal document that will set up all of the rules of running and establishing the fund along with the laws for superannuation. Basically, it is going to be how the fund is going to be operated. Some of the things that need to be included in the deed is who the members are going to be, the objectives of the fund, when the contributions are going to be made, who can be a trustee and how the trustees are going to be appointed or removed from the deed.
The third step is to sign the trustee declarations. This means that every person who is a trustee is going to need to sign a declaration within 21 days of becoming a declaration. This is going to show that you understand the following things like the fund that the fund is to be maintained for the purpose of providing the benefits of the members when they want to retire, the general duties that have to be meet, the legal obligations, and the rules that apply to make the contributions, purchasing and managing the investments.
The fourth step for the SMSF is to record the members tax file number. If you do not do this, then the fund will not be able to accept any personal contributions or the contributions on the spouse's behalf. Therefore, the person will have to deduct the additional tax from the contributions of the employer. This means that the members might also not be able to receive any of the co-contributions from the Low Income Superannuation Contribution and the Federal Government.
The fifth step is to make sure that you register with the Australian Taxation Office. This is going to need to happen within 60 days of the fund being established. You will also need to elect for the fund to be regulated in order to get the superannuation tax concessions. All that you have to do is to apply for the Australian Business Number at the Australian Business Register. Once you have completed the application, then you can ask for the tax file number for the fund. You will also need to register the fund for the GST if it is going to have a annual turnover of $75,000. This is not going to include the incomes from the financial assets or the contributions.
The sixth step is to open up a bank account. This is so that it is going to be able to take any cash contributions, the income from the investments, benefits of the members, or to pay the expenses of the funds. It is going to need to be in the names of the trustees and the money is going to need to be separated from the business or personal assets. The fund will need to be able to hold some assets before it can be established legally. This is going to be done through the cash contributions into the bank account for the fund.
The seventh step is to prepare an investment strategy. The strategy is going to need to take into account all of the needs of the members and their circumstances before any type of investment can be made. The strategy will need to set up the objectives of the fund that will need to be measurable and meaningful to the members, and outline all of the investments that are going to need to be made to achieve of the objectives. The trustees are going to need to think about if the fund is going to need insurance.
The eighth step is to make sure to accept the contributions and rollovers. When the cash contributions are made for the fund, the money will be rolled over directly into another super fund. The fund that you are going to be transferring the money to will help to establish the SMSF. There will need to be a complying superannuation fund so that you will be able to look up the details on the fund through the website of the Australian Taxation office, which is only going to be possible through rollover money.
The ninth step is to appoint the professionals. You will need to have an independent auditor that is going to review all of the activities of the fund each year. This is to help make sure that it is going to comply to the relevant laws. If you have not engaged them already when the fund was establish, then you are going to need the services of the professionals. Some of these people are going to include a lawyer, investment or financial adviser, a fund administrator, an auditor, and the accountant or registered tax agent.
The tenth step is to make sure that you prepare for the future of the fund. This means that it is going to be a good idea to complete a binding death benefit nomination so that the fund is going to be paid to the preferred beneficiary when everyone dies. The options that are going to be available to you is going to depend on what is going to be allowed under the deed of the trust. Therefore, it is going to be important to know what type of nominations are going to need to be made in the deed.