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Self Managed Superannuation Fund

How do I order a SMSF?

Simply fill in our form below. We will review all of your details and contact you with any questions. We will personally prepare your documents. You will receive your documents via email or express post.

  • DIY Print: $319 (including GST)
  • Hard Copy: $363 (including GST)

Q & A – Self Managed Superannuation Fund

The questions and answers below are for information purposes only and are not advice. You should arrange your own legal, accounting, financial and other advice.

1. How many members can a SMSF have?

A SMSF can have a maximum of 4 members only.
The fund will cease to be a self managed fund for the purposes of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) and Regulations (SIS) if it has 5 or more members.

2. Who can be a trustee of a SMSF?

The SIS Act requires a SMSF to have either:
  • A corporate trustee; or
  • Two or more individual trustees (in which case the primary purpose of the fund must be the provision of old-age pensions).
Our trust deed allows for the trustees of the SMSF to be either a corporate trustee or individuals.
All members of a SMSF must be trustees of the fund and vice versa. This can be achieved in a number of ways:
  • Sole member fund
    • Individual Trustees – there must be two trustees – the sole member and one other person (the sole member must not be an employee of the other trustee unless they are relatives).
    • Corporate Trustee – the sole member must be either:
      • The sole director of the Corporate Trustee; or
      • One of a maximum of two directors of the company (the sole member must not be an employee of the other director, unless they are relatives).
  • Multiple member fund
    • Individual Trustees – all members must be trustees and each trustee must be a member of the fund.
    • Corporate Trustee – each member must be a director of the Corporate Trustee and each director must be a member of the fund.

3. Are there any restrictions on who can be a trustee?

Certain people are prohibited by SIS from being a trustee or a director of a trustee company of a regulated superannuation fund. Briefly, a person can not be a trustee, or a director of a trustee company, if:
  • They are an undischarged bankrupt;
  • They have ever been convicted of an offence involving dishonesty (no matter where or when that offence was committed); or
  • They have committed a serious breach of the SIS Act (resulting in a civil penalty order).
The people who are proposed to be the trustees or the directors of the trustee company must sign a Consent to Act or a Declaration of Director form before being appointed as a trustee or director (we provide the forms). The form requires the person to confirm that they are not disqualified from acting as a trustee or as a director of a trustee company of a superannuation fund for the above reasons. It is essential that the proposed trustees or directors consider their position.
A parent or guardian can act as a trustee or director for a child under 18 years old who is a member.

4. What are the advantages of having a corporate trustee of a SMSF?

The advantages of a corporate trustee include:
  • Removal of most of the risk of personal liability which individual trustees are exposed to (although the directors of a corporate trustee may be personally liable in certain circumstances).
  • No need to incur the cost of transferring assets to the new trustees or changing names on investments and bank accounts when there is a change in members and therefore a change in trustees.
  • Control of the fund is more certain in circumstances of death or incapacity of key members.
  • While a corporate trustee is more expensive to set up at the outset, there are costs savings later, for example the ASIC annual statement fee is lower for a company whose sole purpose is to act as trustee of a SMSF ($54 compared to the usual $267 for a proprietary company).

5. Who can contribute to the fund?

The trustee of the fund may generally accept contributions in respect of a member from any person, to the extent permitted by SIS, including from the individual member, the employer of a member with trustee approval, or a member’s spouse.

6. What are Death Benefit Notices?

Under the trust deed for the SMSF the trustee has a discretion as to who will receive the benefit payable on a member’s death. However, a member can give directions as to whom they want their death benefit payable and in what proportions. There are 3 types of direction – Non-Binding Death Benefit Notice, Binding Death Benefit Notice and Death Benefit Agreement.
A Non-Binding Death Benefit Notice merely suggests to the trustee where the member wants their super to go in the event of their death, and the trustee may still exercise it’s discretion.
A Binding Death Benefit Notice (BDBN) binds the trustee to follow the member’s direction. A BDBN is only valid for 3 years (unless the member amends or revokes it earlier) after which time the member will need to give another direction. A BDBN should be only undertaken in conjunction with the member’s estate planning and the member should seek legal advice before making a BDBN.

A Death Benefit Agreement binds the Trustee and continues in force until amended or terminated.

What are some of the features of our SMSF package?

The following are some of the features of our SMSF package. However the SMSF Trust Deed should be read in full to understand the relationship between the trustee and beneficiaries and how the SMSF works.

 

  • All documents to establish the SMSF.
  • Our documents are easy to read and understand.
  • Each member has a choice of a Binding Death Benefit Notice, Non-binding Death Benefit Notice or a Death Benefit Agreement.
  • You decide how you want the documents delivered to you.
  • We give you a choice of us arranging stamping of the deed, or you can arrange it.
  • We prepare your documents and call you if we have any questions.
  • We can include your logo.
Show More features of this package
  • ability to appoint individual or corporate trustee;
  • choice over the way contributions are made and who can make them including employer and employee contributions, self-employed contributions, spouse salary sacrifice contributions;
  • contribution splitting;
  • Family Law flexibility – married couples who separate are able to divide superannuation interests as part of the overall property settlement. Our deed gives a discretion to the trustee to admit a non-member spouse to the fund and to set rules for their membership, and the member spouse has an overriding power to direct the trustee to transfer the non-member spouse???s interest to another superannuation fund;
  • flexibility as it allows for changes in law without the need to change the terms of the trust deed.

 

Document Shop Delivery Options?

*Prices are GST inclusive and do not include any stamp duty that may be payable.

DIY Print - $319

We will deliver all documents to you via e-mail.

Hard copy - $363

We will print, bind and deliver all documents to you in a binder via courier.

Stamping

SA: as from 1 July 2006 deeds are exempt from stamp duty in South Australia.
NT: $69* (includes GST and stamp duty of $25). We will arrange stamping in the NT.

What do I get if I order a SMSF?

You will receive:
  • Trust Deed;
  • Membership application forms;
  • Death Benefit Notices for each member;
  • Tax File Number notification forms for each Member;
  • Consent to act as Trustee (individual trustees) or declaration of director (corporate trustee);
  • Trustee’s minutes (individual trustees) or minutes of meeting of directors (corporate trustee);
  • Investment Strategy;
  • Statement to Contributing Employer and Application for Contributing Employer (if any);
  • Register of Members, Register of Trustees and blank Death Benefit Notice forms;
  • If you choose Hard Copy delivery – a binder.

Disclaimer

You should not rely solely on the information in these questions and answers because they are of a general nature only and the tax and commercial laws apply differently to different people and circumstances. Also as the law changes constantly, there may have been changes to the law since these questions and answers were written. None of the information is intended to be legal, accounting, financial or other advice. You must not act on the information. You must seek your own legal, accounting, financial and other advice.
Document Shop Pty Ltd and it’s directors, officers, employees, agents, consultants and the author of these questions and answers expressly disclaim any and all liability to any person or entity for the consequence of anything done or omitted to be done by any such person or entity relying on a part or all of the contents of these questions and answers.

Need More Infomation?

Contact us


Phone: 1300 667 817

info@documentshop.com.au

PO Box 47 Highgate SA 5063

Services


Contact us


Phone: 1300 667 817

info@documentshop.com.au

PO Box 47 Highgate SA 5063