Frequently Asked Questions
Below is a list of Frequently Asked Questions in relation to Self Managed Superannuation Funds (SMSF) to be considered when wanting to start up your own Superannuation Fund.
Can I set up a self managed superfund?
You can set up a Self-Managed Superfund if you are over the age of 18 and not a disqualified person. A disqualified person is a person whom:
has been convicted of an offense involving dishonesty,
has been subject to civil penalties under the Superannuation Industry (Supervision) Act, or
is insolvent under administration.
How much do I need in my Superannuation before I can setup a SMSF?
Depending on what you wish to do with your SMSF will depend on funds required to setup the fund. It is important to hold enough liquidity after purchasing the investment to maintain pay expenses etc. As a ball park figure, account balances should be around $200,000-250,000. As your fund balance increases, it reduces the relative costs and makes it a viable option.
How many members do I need to start a SMSF?
SMSFs can start with as little as one member but must be less than 5 members in total. Some common arrangements as examples can be as follows:
two trustees, one is the member and the other is a relative of the member.
a body corporate acting as trustee, where the member is the sole director of the body corporate, or the member is one of only two directors of the body corporate, and the member and the other director are related.
Can contributions from my employer be paid into my Self Managed Superfund?
Yes, Employer contributions are able to be to be contributed to your SMSF. With the Super choice legislation in effect, you are able to nominate your SMSF as your super choice nomination.
Can I rollover my existing superannuation into my self managed superfund?
Yes, you can rollover your existing superannuation accounts into your SMSF. Caution needs to be considered before you rollover your superannuation as you may loose some benefits such as insurance cover that you may not be able to get again.
What type of investment assets can be held in a SMSF?
The trustee of the superannuation fund will structure the investment strategy for a compliant SMSF. Self-Managed Superfunds can invest in most investment products including shares, managed funds, residential and commercial property. You can even invest in artwork and collectables so long as specific conditions are met.
What are the costs associated with having my own self managed superfund?
There are some once-off costs to initially setup the SMSF as well as ongoing annual costs for the superfund’s advice, accounting and tax reporting. Costs for the fund are able to be shared between the members depending on the value of the superfund’s assets.
If I change my mind, can I wind-up my self managed superfund?
Yes, in the circumstances where a self managed superfund is no longer required or suitable, the fund is able to be wound up and rolled over into a superannuation fund. This can be a complicated task and we suggest you speak to us about the processes and costs involved.
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