Tips For Setting Up A SMSF

by Dylan Callahan IT Consultant If you are thinking of setting a SMSF know that you will have to consider and decide on a number of matters, some of which will be simple and others that will require more understanding.

So your biggest question right now might be: How to set up a SMSF? To try to make things easier for you, we've created some tips that outline some the main considerations and activities involved in establishing a SMSF. It is important to mention that this is not a comprehensive list and you should sick professional advice to complete understand how to set up an SMSF.

1. Get consent by trustees and directors – Trustees and directors of the fund need to agree in writing to their appointment. That means they are consent of their responsibilities.

2. Open a bank account -  To settle the SMSF as a trust, often a small contribution is made into the bank account of the fund when the trust deed is executed. Next transfers and contribution can be made through this bank account as needed.

3. Choose to be regulated and apply for the fund's ABN and TFN – This non-revocable notice inform the ATO that the fund elects to be subject to the applicable laws and will, therefore, be nominated to concessional taxation treatment as a complying superannuation fund. You will be able to apply for the ABN and TFN in the same request.

4. Register for GST – That allows a SMSF to claim reduced input tax credits on taxable supplies and input tax credits on financial supplies offered.

5. Accept member and consider provision of PDS – Trustees should decide to accept the members of the fund. When required, A PDS is often prepared by the SMSF trustee with help from the legal practitioner who created the trust deed.

6. Benefits from other super funds – There is a variety of considerations involved when transferring benefits to an SMSF. A financial adviser should be able to provide you with advice concerning the implications of moving existing superannuation benefits to your SMSF.

7.  Set up a new insurance or transfer an existing one – Make sure that the SMSF applies for the appropriate levels and types of risk insurance.

8.  TFN collection – Record the TFN for each member. This will help ensure that the SMSF can get contributions from the members and avoid extra tax.

9. Accept death benefit nominations for members – A death benefit nomination tells who the member wants to receive they superannuation benefit on death.

10.  Have an investment strategy prepared – Formulating and giving effect to an investment strategy is an important establishing responsibility.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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