An overview on setting up and running a SMSF. www.westcourt.com.au

1. Setting up and running a SMSF
ON BEHALF OF PROTRADER
JUNE 2018
PENANG

2. Another disclaimer….
The purpose of today is to open your mind, amuse and inform you.
Content we provide should not be used by you to replace any professional, financial or
legal advice.
Don’t say we didn’t warn you, because we just did.

3. Why
Full control over investment choice
Transaction transparency
Combined super balances
Flexibility (pension, accumulation, pre Estate)
Tax strategy links
Cost efficiencies

4. Why not
Time involved in operating
Dominant trustee hazard
Risk of poor diversity
Penalties for non-compliance
Costly (low balance)
Loss of interest by members / trustees

5. Advice
Who can provide advice in the initial set up?
Financial advisor / financial planner
Accountant / tax agent
Lawyer
Ongoing requirements?
Accountant / tax agent
Financial advisor / financial planner
Auditor

6. Trustee
Individual v Corporate Trustee
* Note: different conditions for single member SMSFs.
Individual Corporate
Members * 2 to 4 1 to 4 (must be directors)
ASIC annual fees No Yes (low rate super trustee)
Trustee updates All asset titles to be
updated
ASIC form + resolution
Penalties ($210/unit) Levied on each trustee (4x ?) Levied on the trustee
Succession Change required Continuous

7. Additional requirements
Trust deed
Member applications
ATO matters: TFN, ABN (inc. election to be regulated)
Electronic Service Address (ESA)
Bank account(s)
Insurance review and declaration
Investment strategy
Binding Death Benefit Nominations (BDBN)

8. Compliance
Annually:
Financial statements and tax return
ASIC company review and solvency
Audit
Asset valuation
Insurance position
Other:
Investment strategy (every 3 years)

9. Records
Record keeping systems:
Specific software (i.e. BGL, Class)
General software (i.e. Xero, QBO, MYOB)
Excel / manual
Record keeping requirements:
Five (5) year minimum: tax compliance / financial reporting
Ten (10) year minimum: trustee / member / strategy

10. Next Topics
How to get funds into a SMSF
Super changes and tax implications

11. Want more?
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