Setting up an SMSF definitely brings many benefits and it offers the best there is once you enter your retirement days. Me and my husband became interested in the whole procedure after our best friend told us about his experience and all the benefits this fund offers. He talked with amusement about how the SMSF Australia system is the best and we should definitely consider being a part of it. Well, let me tell you that got us thinking and we started making plans about starting our own SMSF. And yes, that turned out to be the best decision we’ve ever made – we are now able to control and manage our investments, retirement planning and build a safe future for our family.
The first thing I did before becoming a trustee was gathering information, researching and learning all the duties and responsibilities that come with the SMSF. After learning the key facts, me and my husband discussed all the options and settled on a “Single Member Fund”, with me being the principle trustee and him being the second trustee. We began the process of setting up the super fund by contacting a professional accountant. Although the whole process was not that complicated, it sure involved some important legal procedures needed to ensure our fund is in compliance with SMSF Australia super and tax laws. Together with the accountant, we prepared the trust deed, which involved all the details of the trustees, our obligations as well as all the conditions regarding our contributions and benefit payments. Afterwards, we set up a bank account for the fund and started the procedure for registering with the ATO and after about 30 days we received the tax file number (TFN) as well as the Australian Business Number (TFN) for our super fund.
As a trustee I have a lot of obligations and I should strictly follow the regulations that are set up by the Superannuation Industry Act, commonly known as SIS act. A huge part of this is being legally responsible for all the activities and decisions. There are many procedures that come with running the fund which involve preparing an annual tax return, documenting and maintaining records on all the contributions and actions as well appointing an approved auditor that will finalize the annual audit. Preparing accounts, financial statements and valuing assets is also very important. Furthermore, regularly paying taxes and following all the laws is essential.
However, formulating a successful investment strategy which will be in accordance with the SMSF Australia regulations was the most important step for me. The benefits it provides are numerous and maximize the efficiency of the super fund. It helps me manage all the investments more efficiently and have more control over investment-related decisions.