SETTING UP A SELF MANAGED SUPER FUND (SMSF)
Once you have decided to set up your new SMSF, Black Bear will guide you step-by-step through the setup process, from the initial meeting through to the rollover of your super into the new Fund. As with all of our services, the fees are fixed. SMSF setup costs are as follows:
SMSF setup fees
New Trust Deed: $450
Corporate Trustee: $850 (includes ASIC fee of $444).
Price Includes:
New SMSF Trust Deed (Maddocks Lawyers)
New Pty Ltd Company (Maddocks Lawyers)
ABN and TFN registrations
Product Disclosure Statement (PDS)
ATO consent forms
Member applications
Investment strategy assistance
Assistance with rollover of existing super balances
SMSF setup Process
Typically the steps are as follows:
Step 1. Consider whether a SMSF is right for you
To consider whether a Self-Managed Super Fund is the right choice for you, the following should be reviewed:
Current Fund balances: Do the current combined member balances allow for a cost effective SMSF?
Current circumstances: Is your income secure? Will SGC or member contributions continue to be deposited to the Fund?
Administration: Are you prepared to take a more active role in administering your Fund
Investing: Have you considered what type of assets you would like to purchase for your new Fund?
We recommend you read the ATO Fact Sheet on starting a SMSF to assist you with your decision.
Timeframe: Variable
Step 2. Create Trustee Company and Fund Deed
Establishing a fund would normally require the creation of the following entities:
Trustee Company
Self- Managed Superannuation Trust
The following supporting documentation is also required:
Resolution of the proposed trustees
Consent to Act by each trustee
Trustee Declaration by each trustee
Application for Membership for each member
Product Disclosure Statement for each member
Each of the above documents must be executed and witnessed
by the relevant parties.
Timeframe: 1 Day
Step 3. ATO Registration
ABN and TFN Registration for Superannuation Entities application form lodged with the ATO via the ABR online portal.
Timeframe: The ATO can take up to 28 days to make a decision on the application.
Step 4. Review Life and TPD Insurance
We recommend a review of your insurances before any current Fund balances are rolled into the new SMSF. In particular, Life Insurance and Total Permanent Disability Insurance should be reviewed.
It is also a requirement by the Australian Taxation Office that all Fund trustees consider insurance for Fund members as part of their investment strategy.
This should be undertaken by an authorised financial advisor.
Step 5. Open a Bank Account
Typically an SMSF will have 2 bank accounts:
The bank accounts can be with any major bank, and must be opened using the SMSF ABN.
Timeframe: 1 Day
Step 6. Confirm Fund is a Regulated Fund
The ATO Super Lookup website will be updated by the ATO with the new Fund’s status, allowing third parties such as employers to verify that the Fund is correctly registered and therefore able to accept contributions.
Once this occurs, your current super balances and contributions can be rolled into the SMSF bank account.
Step 7. Divert SGC Contributions to new bank account
Your HR / payroll department can arrange to deposit future contributions to the new SMSF bank account.
Step 8. Create an Investment Strategy
Every SMSF requires Trustees to formulate an investment strategy and maintain it on a yearly basis.
We can provide a template to assist you in formulating the strategy.
Step 9. Rollover Existing Balances
Rollover forms will be prepared by Black Bear Accountants to enable the transfer of Fund balances into the SMSF bank account.
Step 10. Apply Investment Strategy
Invest the assets in accordance with the investment strategy. This may involve purchasing shares, term deposits, collectibles, or borrowing to purchase property.