While SMSF’s offer greater control over your super investments, they also come with significant responsibilities and considerations.
Is an SMSF Right for You?
Things to consider before deciding to set up a SMSF:
- Do I understand the legal duties involved in being a trustee?
- Can I confidently manage and review investments myself?
- Do I have the time and interest to handle administration and reporting?
- Is my super balance large enough to justify the costs (typically cost-effective for balances over $350,000)?
- Am I comfortable with the reduced protections compared to retail or industry super funds?
If you answered ‘no’ to any of these questions, you should speak to a licensed adviser before proceeding.
6 Steps to Establish an SMSF
1. Appoint Trustees
Choose either:
- Individual Trustees (2–6 members), or
- A Corporate Trustee (a company with each member as a director)
All members must generally be trustees or directors and must provide written consent.
2. Create the Trust & Trust Deed
- Establish a legal trust and sign a compliant SMSF trust deed
- Appoint the members and accept trustee responsibilities in writing
3. Register the Fund with the ATO
- Apply for an ABN and TFN
- Elect to be regulated by the ATO within 60 days
- Register for GST if required
4. Set Up a Bank Account
Open a separate SMSF bank account to manage:
- Contributions
- Investment income
- Fund expenses
5. Develop a Written Investment Strategy
Your strategy must address:
- Diversification
- Risk and return
- Liquidity and cash flow
- Member retirement needs and liabilities
It must be documented and reviewed regularly.
6. Accept Rollovers and Contributions
Your SMSF can receive:
- Employer contributions
- Personal contributions
- Rollovers from other super funds
- Ensure all contributions meet contribution caps and super laws.
Ongoing Trustee Responsibilities
Trustees are legally responsible for the fund’s operation and compliance. Ongoing obligations include:
- Preparing annual financial statements
- Organising an independent SMSF audit
- Lodging the SMSF annual return with the ATO
- Paying the ATO supervisory levy
- Keeping required records (5–10 years)
Important Notes
- SMSFs are not suitable for everyone and require time, effort, and financial knowledge.
- Trustees are personally accountable for decisions and compliance.
- Many trustees rely on professionals for help with administration, accounting, and audits.
Need Help Setting Up an SMSF?
The ATO has many courses and education products to assist people with or considering an SMSF: Setting up a self-managed super fund (SMSF) | Essentials to strengthen your small business. This is a great place to start.
Future Assist Accountants can help with the administrative setup of your SMSF — but we do not provide personal financial advice or make recommendations about whether an SMSF is appropriate for your situation.
This is an execution-only service. We cannot provide you with advice or recommendations. If you proceed based on your own research, please note that we are not licensed to assess suitability.
What Future Assist Can Do
- Provide an Engagement Letter and SMSF Letter
- Issue an SMSF Establishment Form
- Assist with Director ID setup (if applicable)
We’ll also help you consider:
- Which bank account to open
- How to roll over your super
- What to do about insurance inside your current super fund
The information contained in this webpage is general in nature and has been provided in good faith, without taking into account your personal circumstances. While all reasonable care has been taken to ensure that the information is accurate and opinions fair and reasonable, no warranties in this regard are provided.Â
