At Approved Financial Planners, we work with a lot of self-managed superannuation funds (SMSFs). The biggest advantage of a self-managed super fund is that you can invest your money the way you want to. However, if you don’t have the right professionals guiding you, this advantage can turn into a disadvantage.
There is a fair amount of work involved in setting up a SMSF, but you only have to do it once. Here are some of the steps involved. Remember that every situation is different and that you should always work directly with a professional when setting up an SMSF.
Obtain Consent from Directors and Trustees
Obtain written consent from trustees and directors of their appointments to their positions and full awareness of the responsibilities thereof.
SMSF Bank Account
Your SMSF will need a bank account to establish it as a trust. This will usually require a small deposit.
Apply for SBN and TFN
You can apply for your Small Business Number (SBN) and Tax File Number (TFN) simultaneously. To receive concessional taxation treatment from the ATO as a compliant super fund, you will need to complete a form saying that your fund elects to be compliant with ATO regulations.
Register for GST
If you would like to receive input tax credits for taxable supplies and reduced input tax credits on financial supplies, register for Goods and Services Tax (GST).
Accept Fund Members
All fund members must be officially accepted by the trustees.
Rollover Other SMSF funds
If you wish to rollover funds from other SMSFs, we strongly recommend consulting a financial adviser first.
Take Care of Insurance
Talk to a financial adviser to determine what insurance is appropriate for your SMSF. Take a look at your existing policies such as total and permanent disability cover, life insurance and income protection insurance. You can take out new policies or often transfer existing ones.
Make sure that each member’s TFN is on file.
Death Benefit Nominations
Death benefit nominations are an official notice of who each member elects to receive their super fund if they die.
Your Investment Strategy
Consult a financial adviser and develop an investment strategy. Call Approved Financial Planners for an obligation-free consultation regarding your SMSF. Call (08) 6462 0888 today.