Locumsgroup can assist in establishing a self managed super fund (“SMSF”) if that is the direction you would like to steer your retirement funding toward. We have a high level of expertise in the field and can attend to all of the required steps to set up your fund.
In general terms, the steps involved in setting up a SMSF include the following:
- Obtaining a trust deed
- An SMSF trust deed must be prepared which establishes the operating rules for the fund.
- Locumsgroup provides a standard SMSF trust deed to all our clients. This trust deed is flexible and effectively allows your SMSF to do anything allowed by superannuation legislation.
- Appointing trustees
- All superannuation funds must appoint trustees. Trustees are responsible for ensuring the fund is properly managed and that it complies with all rules and legal obligations.
- All SMSF members must be appointed as trustees of the fund. Learn who is eligible to become an SMSF trustee.
- Under the SIS Act, trustees must consent in writing to their appointment as trustee.
- Signing a trustee declaration
- All new SMSF trustees (and directors of corporate trustees) must sign an ATO Declaration confirming that they are aware of their duties and responsibilities within 21 days of becoming a trustee or a director of a corporate trustee.
- Electing to become a regulated fund
- Trustees must elect to be ‘regulated’ under SISA to receive concessional tax treatment within 60 days of establishing an SMSF. This can be done online or by submitting a paper form to the ATO.
- Obtaining a Tax File Number (TFN)
- Trustees must obtain a TFN for the SMSF. This can be done online or by submitting a paper form to the 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 obtained online or by submitting a paper form to the ATO.
- Separate bank accounts
- A separate bank account must be established for your SMSF to ensure that money belonging to the SMSF is held separate from accounts of the members, trustees and related employers. This is a SISA requirement but also helps SMSF trustees to preserve and protect their retirement income.
- We clients in the process of establishing separate bank accounts for each new SMSF. Generally, the main operating account established by Locumsgroup is a Macquarie Cash Management Account.
- SMSF investment strategy
- SMSF trustees must prepare and implement an investment strategy for their SMSF, and regularly review that investment strategy. This helps trustees to make the best possible investment decisions for their SMSF.
- The SMSF investment strategy must reflect the purpose of the fund and consider:
- investing to provide sufficient member returns, taking into account investment risk
- appropriate diversification and the benefits of investing across asset classes (for example, shares, property, fixed interest) in a long-term investment strategy
- the ability of the SMSF to pay benefits as members retire and to pay other costs incurred by the SMSF, and
- the age, income, employment and retirement needs of the SMSF’s members.
- All investment decisions must be made according to the SMSF’s investment strategy.
Locumsgroup can assist you in establishing your self managed superannuation fund, including attending to the process of rolling over and consolidating your existing superannuation arrangements. Get in contact with one of our financial advisers today CONTACT
