Online SMSF Setup | What Documents are Included?

SMSF Australia offers a fixed price efficient online SMSF setup service which can be completed entirely digitally with no physical documentation required costing $2,000+GST. We will assist you throughout the process and ensure that everything is completed quickly and compliantly. In order to make a start you will need to make sure you have all your personal details to hand including a photo ID such as a passport or drivers license, your tax file number along with details of your existing superannuation funds.

Once you have your documents ready reach out to one of our friendly team who will guide you through the process for selecting a name for your SMSF through to helping you open an SMSF bank account.

Quick Summary SMSF Documents

As part of the SMSF Setup process we will provide you with all the documents you need to get up and running which are described in detail below but in short these include special-purpose corporate trustee documents, SMSF Deed, trustee and director consents, trustee resolutions and minutes, ATO trustee declarations, membership applications, ABN and TFN registrations, election to be regulated, electronic service address, investment strategy template; and death benefit nomination forms.

SMSF Deed

The fund’s SMSF deed is the most important legal document required to set up an SMSF. It creates a trust instrument. The SMSF trustee(s) agree to hold the assets on behalf of the SMSF members.  Within the SMSF Deed are the governing rules and set out such things as:

• how to add or remove a member or a trustee
• who can act as a trustee
• the circumstances under which a fund can accept contributions or pay benefits
• the death of a member
• what the fund can invest in

Your SMSF trust deed cannot override the Superannuation Industry (Supervision) Act 1993 (SISA) and the Superannuation Industry (Supervision) Regulations 1994 (SISR); however, the fund’s deed can place restrictions on what is allowed under superannuation laws.

An SMSF must act honestly, exercise care, skill and diligence, act in the best interests of the members, keep the SMSF’s assets separate from the trustee’s or the directors of a corporate trustee’s (directors) personal assets, and formulate and review an investment strategy. These covenants are required under SISA and are deemed to form part of an SMSF’s governing rules, whether or not they are expressly formulated.

Corporate Trustee is Always Included

An SMSF can have individual trustees or a corporate trustee.  We always recommend that an SMSF have a special-purpose corporate trustee, especially now that an SMSF can have up to six members. A number of states do not allow more than four individual trustees, and a single-member fund can have a single director corporate trustee, but cannot have a single individual trustee.  When we help you set up an SMSF, our fees include the cost of establishing a special-purpose corporate trustee. We help establish a special-purpose company to act as the sole trustee, but if you do not have a director ID, you will need to apply for one.  We are more than happy to assist you with the process.

Trustee resolution

A trustee resolution is a document, signed and dated by all trustees (or directors), that records the Trust Deed establishing the SMSF and confirms that each trustee or director has consented to act as trustee or director of the SMSF. SISA requires trustee resolutions to be kept on file for at least 10 years.

Consent to act

Each individual trustee or director must provide a formal written consent to their appointment, which generally confirms that they are not a disqualified person and that they understand the governing rules. As with a trustee resolution, the consent must be kept on file for at least ten years.

ATO trustee declaration

From 1 July 2007, the ATO and SISA require all individual trustees and directors to sign a declaration. Within 21 days of their appointment, they must confirm they understand their obligations and responsibilities as set out in the ATO declaration. The declaration is kept on file, must be made available if requested by the ATO, and must be retained for at least 10 years or for as long as you remain a trustee or director.

Election to be regulated by the ATO

The ATO regulates SMSFs. An SMSF must formally elect to be regulated by the ATO to receive concessional tax treatment. When a fund elects to be regulated by the ATO, it may fall under the pensions power if it has individual trustees, or under the corporation’s power if it has a corporate trustee. In practice, a member can take a lump sum or a pension upon meeting a condition of release, regardless of the legal mechanism under which the fund was established, but remains subject to the fund’s trust deed.

The election is irrevocable, must be made within sixty days of being established, and the fund must comply with the super laws to qualify as a complying fund. The SMSF must register on the Australian Business Register (ABR) to make the election, obtain an Australian business number (ABN) and a tax file number (TFN) which we do for you as part of the SMSF setup process.

A fund’s compliance status can be accessed via Super Fund Lookup (SFL). Initially, the status of a new SMSF is shown as “Election to be regulated is being processed”, changing to” Registered” after the ATO has processed the election and issued the fund with an ABN. When the status shows “Registered”, rollovers and contributions can be made to the fund. After a few days, the status should change to “Complying”.

Hint – As an SMSF is a form of trust, it is only legally established when it holds an asset on behalf of a beneficiary. Until the fund obtains an ABN, rollovers may be denied, employers can’t claim a tax deduction, and many banks are reluctant to open a bank account. To overcome this issue, a member contribution can be made, physically held by the trustee, and deposited when the bank account is opened. The ATO has indicated it will use its administrative discretion to allow a minor member contribution from someone who is unable to contribute, such as someone over 75, provided the sole purpose of making the contribution is to register the fund.

Application for membership

Adding a member is done in accordance with the rules of the fund’s trust deed. Generally, a formal application is made, providing information about the member, such as:

• member name
• date of birth
• date joining the SMSF
• member’s TFN

The application should be signed by the member and formally accepted by the trustee. A trustee minute or resolution documenting the application and acceptance should be kept on file with the signed member application for at least 10 years.

Apply for an electronic service address (ESA)

When we set up an SMSF, part of the fees covers the annual Class software fee, which provides the fund with the ESA necessary to roll over super benefits from other funds via SuperStream. The Electronic Service Address will also allow for contributions from employers directly into the fund and allows it to be PayDay Super compliant.

Investment Strategy

The trustees set out an investment strategy that incorporates their investment objectives and outlines how they intend to achieve them. The strategy must be reviewed regularly, at least annually, and amended if required.

Death Benefit Nomination

A member can complete a binding or non-binding death benefit nomination. It is an option that a member can take up, but it is highly recommended to do so only after consulting with your financial planner or estate-planning lawyer.

Start operating the fund

After your SMSF is set up and the fund’s ABN has been received, the trustees are ready to start and can:

• open a bank account in the fund’s name
• receive contributions
• make investments
• pay fund expenses
• request rollovers to transfer super from other complying funds

If you are needing help establishing your own Self Managed Super Fund reach out to one of our friendly team today who would be happy to jump on a Zoom or phone call and answer any questions you have!