A self-managed super fund is a superannuation trust system that gives benefits to its members upon their retirement. The main difference to that of other super funds is that SMSF members are also the trustees of the fund. SMSFs can have between one and four members and one of the main advantages is the level of control that trustees have when it comes to custom-building the fund to meet their individual needs.

SMSFs are established for the sole purpose of providing rewards to members in retirement or their beneficiaries on death. All SMSF investments are made in the name of the fund and are controlled by the trustees. As a trust, an SMSF requires a trustee. There are two trustee structure options:

Corporate trustee – a company acts as the trustee and each member is a director. This structure allows simpler recording and registering of assets, providing administration efficiencies and flexibility in membership. Company establishment and ongoing fees are applicable with this structure.

Individual trustee – each member is appointed as a trustee, with a minimum of two trustees required.

SMSFs have strict administrative obligations that require themaintenance of proper records, preparation of financial statements, tax returns and an independent audit. We at Alliance Taxation Australia have much experience in these fields and can guide our clients through these challenges.