What is an SMSF?

Like other superannuation (super) funds, self-managed super funds (SMSFs) are a way of saving for your retirement. The difference between an SMSF and other types of funds is that, generally, the members of an SMSF are also the trustees. This means the members of the SMSF run it for their own benefit.

What are the requirements for establishing an SMSF?

To establish an SMSF, the fund must meet the following conditions:

• have up to 6 members.
• each member of the fund must be a trustee of the fund.
• an SMSF can alternatively have a company trustee (known as a corporate trustee). Each fund member must be a director of the trustee company.
• no fund member can be an employee of another fund member, unless they are related.
• an SMSF can have a sole member if the fund has a corporate trustee and the member is a director and shareholder.
• SMSFs must abide by the Sole Purpose Test which stipulates that a fund is established for the sole purpose of providing benefits to members on their retirement or to their beneficiaries on the member's death.
• No trustee of the fund can receive remuneration for their services for acting as a trustee.
• All assets of the fund must be segregated from personal assets of the members.
• The trustee must prepare & implement an investment strategy.