There are, however, some important factors you should consider. Although anyone can set up their own SMSF, there are installation costs and the costs involved, so a guide, you should definitely have at least $ 200,000 initially. At least this and the administrative costs outweigh the benefits received by the fund. SMSF can cost over $ 1,000 to $ 1,500 per year to run.
You should also know that being a Super Fund, you can not personally benefit from any revenue fund until you retire.
When you decide to setup your own Self Managed Super Fund, the Australian Taxation Office (ATO) is a good place to start. The ATO is a great resource for determining the steps necessary in setting up your SMSF. The ATO is also a great resource for Superannuation Taxation and Superannuation Legislation. In a nutshell there are a number steps:
Find a SMSF Fund Manager or accountant to help setup and administer the fund. The Fund Manager will assist with registering the Fund with the Australian Taxation Office, and ensure the Super Fund is setup to comply with the SMSF legislation.
Decide on the fund structure eg with or without a company structure. There are Pros and Cons for each approach. Your Fund Administrator should be able to provide more detail, on this.
Prepare your Self Managed Super Fund Investment Strategy. Your financial adviser would be a good place to start.
Create the Fund Trust and Trust Deed. You should seek the help of a legal practitioner to create your Trust Deed.
Open a fund bank account.
Do you qualify?
A Self Managed Super Fund must meet the following rules:
The fund has four or less members
Each member becomes an SMSF Trustee.
No member can be employed by another member, unless they're family.
You or the other members cannot receive payment from the fund for duties or services.
You can also acquire or form a company, and nominate the company as the trustee. Similar rules apply.
For more information about Self Managed Superannuation Fund (SMSF) Set up visit us at Future Assist.