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Self-Managed Superannuation Fund (SMSF)
There is no guarantee that investments by a superannuation fund
will produce benefits in terms of capital growth or income flow. As is well known
from recent experience, many superannuation funds suffered capital losses during
2007/2008, and 2008/2009. Some of them lost as much as 40%.
However, what IS
guaranteed is the tax advantage attached to superannuation contributions to a regulated superannuation fund.
It is a
reasonable objective to maximise those benefits. What is not reasonable is for fund
managers to put those funds at risk, in the objective of maximising short term
income flow.
Many fund members have lost heavily as a result of such actions, and
thus are delaying their retirement, while the fund managers, generally speaking,
continue to do well.
The only real certainty about voluntary investments in
superannuation is that your contribution is a tax deduction for you, which is taxed at 15% in the hands of the fund, which is usually less than the marginal rate (30% on earnings over $34,000 PA, and 40% on earnings over $80,000 PA) which would apply if you kept the money yourself. This applies whether you contributed to a fund managed by someone else, or to your own self-managed superannuation fund (SMSF).
The advantage of managing your own SMSF is that you set the investment strategy of the fund. You are required by law to define in writing the investment strategy of your SMSF. You can, and should, define a safe strategy which guarantees the value of those funds upon your retirement.
One disadvantage of an SMSF is that you lose the advantages of scale that are enjoyed by large funds. The books and statements of the fund must be audited once per year. This service might be a significant cost in relation to the size of the fund and its income. However, by managing your fund yourself, you are not paying big charges to have the fund managed by professional fund managers. You might need help from your chartered accounant, but you won't be paying a percentage of your capital to a fund manager.
The Australian Tax Office maintains a website which is a mine of useful information on the subject of establishing and maintaining a self-managed superannuation fund (SMSF). The ATO website supplies many useful forms, but not some ingredients of an SMSF, which we publish below: the trust deed; the investment strategy; the accounts; the members' register; minutes of trustee meetings; the appointment of an auditor; the member's application to join; and a request to transfer monies from another fund into the SMSF and its accompanying statutory declaration.
An SMSF includes a trustee who legally owns property (shares, money and/or real estate) on trust for the fund members, subject to the conditions of a trust deed, and superannuation law generally. The trust deeds published below are designed for single-member funds - in other words for you. They provide for two trustees, in case you die or become incapacitated. docDownload is presently preparing trust deeds for a multiple-member fund (with natural people as trustees) and multi-membr funds with a corporation as trustee. These will be published in the near future.
Some Notes that might help when setting up your SMSF.
We recommend that you start with the following links to the ATO website, but come back to us for the key ingredients.
ATO Notes on Employer's obligations
ATO Notes on who is included and who is exempt.?
ATO Notes on ABN for superannuation entities
ATO Setting Up an SMSF
ATO Sign a Trustee Declaration
ATO Elect to Become a Regulated Fund
ATO Set Up the ABN and Apply for a TFN
ATO Appoint an Auditor
Superannuation Industry (Supervision) Act 1993
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Choose a template:
*SMSF - *Trust Deed -Couple NSW, Vic., SA, WA, NT, ACT
Trust Deed establishing a self-managed superannuation fund in the State/Territory of NSW, Vic., SA, WA, NT, ACT. This is designed for a couple (two member SMSF) to be registered with the ATO. Up to two person fund (not single-member) with no corporate trustee. Suits a husband and a wife who are of similar age and with similar retirement plans, or partners (lesbian, homosexual, defacto) in a partnership or a discretionary (family) trust, etc. Any couple who work together, self-employed, who want to lose some of their earnings to a super fund and prepare for their future. Both Trustees are Members and both Members are Trustees.
(S-6025)
*SMSF - *Trust Deed -Couple QLD
Trust Deed establishing a self-managed superannuation fund in the State of Queensland. This is designed for a couple (two member SMSF) to be registered with the ATO. Up to two person fund (not single-member) with no corporate trustee. Suits a husband and a wife who are of similar age and with similar retirement plans, or partners (lesbian, homosexual, defacto) in a partnership or a discretionary (family) trust, etc. Any couple who work together, self-employed, who want to lose some of their earnings to a super fund and prepare for their future. Both Trustees are Members and both Members are Trustees. (S-6026)
*SMSF - *Trust Deed -Couple Tas.
Trust Deed establishing a self-managed superannuation fund in the State of Tasmania. This is designed for a couple (two member SMSF) to be registered with the ATO. Up to two person fund (not single-member) with no corporate trustee. Suits a husband and a wife who are of similar age and with similar retirement plans, or partners (lesbian, homosexual, defacto) in a partnership or a discretionary (family) trust, etc. Any couple who work together, self-employed, who want to lose some of their earnings to a super fund and prepare for their future. Both Trustees are Members and both Members are Trustees. (S-6027)
*SMSF - *Trust Deed -Multi Member NSW, Vic., SA, WA, NT, ACT
Trust Deed establishing a self-managed superannuation fund in the State/Territory of NSW, Vic., SA, WA, NT, ACT. This is a multi member SMSF (two, three, or four members) to be registered with the ATO. Up to four person fund (not single-member) with no corporate trustee. Suits a family business such as a husband and a wife who are of similar age and with similar retirement plans, or brothers or sisters in a partnership or a discretionary (family) trust, etc. Any single group who work together, self-employed, who want to lose some of their earnings to a super fund and prepare for their future. All Trustees are Members and all Members are Trustees. (S-6021)
*SMSF - *Trust Deed -Multi Member QLD
Trust Deed establishing a self-managed superannuation fund in the State of Queensland. This is a multi member SMSF (two, three, or four members) to be registered with the ATO. Up to four person fund (not single-member) with no corporate trustee. Suits a family business such as a husband and a wife who are of similar age and with similar retirement plans, or brothers or sisters in a partnership or a discretionary (family) trust, etc. Any group who work together, self-employed, who want to lose some of their earnings to a super fund and prepare for their future. All Trustees are Members and all Members are Trustees. (S-6022)
*SMSF - *Trust Deed -Multi Member Tas.
Trust Deed establishing a self-managed superannuation fund in the State of Tasmania. This is a multi member SMSF (two, three, or four members) to be registered with the ATO. Up to four person fund (not single-member) with no corporate trustee. Suits a family business such as a husband and a wife who are of similar age and with similar retirement plans, or brothers or sisters in a partnership or a discretionary (family) trust, etc. Any group who work together, self-employed, who want to lose some of their earnings to a super fund and prepare for their future. All Trustees are Members and all Members are Trustees. (S-6023)
*SMSF - *Trust Deed -Single Member NSW, Vic.,SA, WA, NT, ACT
Trust Deed establishing a self-managed superannuation fund in the State/Territory of NSW, Vic., SA, WA, NT, ACT. This is a single member SMSF to be registered with the ATO. One person fund (not multi-person fund) with no corporate trustee. Suits a single professional, such as an accountant, a lawyer, a medical practitioner, a finance consultant, a broker, a real estate agent, an architect, even a taxi driver. Anyone who is self-employed, who wants to lose some of their earnings to a super fund and prepare for their future. The Member is one Trustee and the other Trustee can be a member of his/her family or a professional associate such as his/her lawyer or accountant but must not be his/her employer. (S-6014)
*SMSF - *Trust Deed -Single Member QLD
Trust Deed establishing a self-managed superannuation fund in the State of Queensland. This is a single member SMSF to be registered with the ATO. One person fund with no corporate trustee. Suits a single professional, such as an accountant, a lawyer, a medical practitioner, a finance consultant, brokers, estate agents, architects, even taxi drivers. Anyone who is self-employed, who wants to lose some of their earnings to a super fund and prepare for their future. The Member is one Trustee and the other Trustee can be a member of his/her family or a professional associate such as his/her lawyer or accountant but must not be an employer. (S-6015)
*SMSF - *Trust Deed -Single Member Tas.
Trust Deed establishing a self-managed superannuation fund in the State of Tasmania. This is a single member SMSF to be registered with the ATO. One person fund with no corporate trustee. Suits a single professional, such as an accountant, a lawyer, a medical practitioner, a finance consultant, brokers, estate agents, architects, even taxi drivers. Anyone who is self-employed, who wants to lose some of their earnings to a super fund and prepare for their future. The Member is one Trustee and the other Trustee can be a member of his/her family or a professional associate such as his/her lawyer or accountant but must not be an employer. (S-6017)
*SMSF - Binding death benefit nomination
Properly signed and delivered nomination that is binding on the Trustee to benefit the nominated beneficiary/beneficiaries upon the death of the member of the Self Managed Superannuation Fund. (S-6019)
*SMSF - Investment Strategy
This is the short version of the Investment Strategy for the self managed superannuation fund, showing basic principles and time-frames governing investment decisions by the Trustee(s). (S-6008)
*SMSF - Investment Strategy - with adjustment
This is the more detailed version of the Investment Strategy for the self managed superannuation fund, showing basic principles and time-frames governing investment decisions by the Trustee(s), and based on the idea that the current strategy can only be decided after clear analysis of past performance and likely prospects. (S-6009)
*SMSF - Request to transfer existing benefits to SMSF
A letter from the Trustee to the Member's existing super fund requesting funds to be transferred to the new Self Managed Superannuation Fund (SMSF). It contains the relevant statutory declaration by the Member. (S-6013)
*SMSF Setup Kit
All the documents you need to set up your Self-Managed Superannuation Fund (SMSF), including minutes, investment strategy, registers and ATO forms, etc.
Read More:
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** Some Notes that might help when setting up your SMSF
