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Summary of SMSF establishment issues and steps

Posted by Northadvisory on August 7, 2017

Step 1: Decide whether to use the constitutional corporation route (ie have a corporate trustee) or old age pensions route (ie have individual trustees). Note that either route allows the fund to pay lump sum and/or superannuation benefits, provided this is also permitted by the fund’s trust deed.

Step 2: Arrange for preparation of the fund’s trust deed (incorporating one or both of the options referred to in Step 1).

Step 3: Arrange for appointment of trustee(s):
obtain written consent to act, including a declaration regarding disqualified person status
if the fund has a corporate trustee, obtain a written consent to act as the directors of the corporate trustee
• obtain trustee declaration of knowledge of SIS trustee obligations as required by the SIS Act
• attend to any other corporate trustee requirements under the Corporations Act 2001
• where a person is appointed a trustee under an enduring power of attorney, ensure that the power has been properly executed in accordance with the state or territory law, and the ATO’s guidelines are complied with.

Step 4: Prepare an investment strategy for the fund.

Step 5: Trustee(s) to:
• approve trust deed
• resolve to make the election to become a regulated superannuation fund
• approve admission of initial members, and
• adopt investment strategy on or before receipt of members’ contributions.

Step 6: Execute the election to be a regulated superannuation fund and lodge it electronically or send it to the ATO within 60 days of fund’s establishment (see Step 9).

Step 7: Provide required information to new members (see Chapter 6 “Reports and returns”).

Step 8: Open a bank account for fund.

Step 9: Apply for an Australian business number (ABN), a tax file number (TFN) and/or goods and services tax (GST) registration for the fund (these applications form part of, and can be made, in the same ATO form electing to be a regulated superannuation fund in Step 6. For a copy of the approved ATO form “Application for ABN registration for superannuation entities”.

There are a lot of steps to start an SMSF but we have streamlined the process to make it as easy as possible. We take care of all the minutes, forms and application forms on your behalf.

If you have any questions please give Cayle Petritsch or Martin van der Saag a call on 02 9984 7774.