Add a New Member to your SMSF

Trustees can add a new Member to their SMSF by following these steps:

  1. Minute the Trustees’ decision to add the member. Download a Minute template here.
  2. The new Member must sign a Membership application and Consent to Act as Trustee. Click here to download the application.
  3. The new Member must sign a Trustee declaration
  4. Notify the ATO about your decision to add a new Member. As a Tax Agent, Superannuation Warehouse will do this for you (at no additional charge). Click here to contact us. To add the new Member we’ll need the following information:

Title:
First Name (as per ATO records):
Middle Name:
Surname:
Tax File Number:
Date of Birth:
Occupation:
Address:

 

Superannuation Warehouse will send you the minutes and application forms as explained above. All you need to send us are the new Member’s personal details, as indicated in the point above.

Corporate Trustee

If the Trustee is a Corporate Trustee, the new Member must be appointed as a Director of the Corporate Trustee. ASIC must be notified by lodgement of Form 490. As your administrator, Superannuation Warehouse will lodge the ASIC notification on your behalf.

Remember

All Members must also be Trustees or Directors of the Corporate Trustee. An SMSF can have no more than 4 members.

For more booklets and information brochures on Trustee responsibilities and Member requirements, click here.

  • Faisal

    Hi

    I have an existing SMSF with two trustees. Me and my wife. We have bought a land against this SMSF on an installment payment PLAN on 2012. And final payment is due on 2016 December. The last payment require a large amount to settle. I have a few question

    I would like to add another member/trustee so that he can roll over his super fund to our SMSF , which will help pay off the land price .
    Is it possible to do so ?

    How much will it cost if you set it up ?

    Does new member needs to have separate bank Acc ?

    The land has two existing trustees name on it. Do I need to add his name even though only two months left for settlement

    Faisal

    • Hein Preller

      Faisal,

      Your question has a few components to it, and as we are not your current accountant, I will make some assumptions in order to answer you. There seems to be 4 components to your questions, which we can answer as follows:

      1. Is it possible to do so ? – SMSFs allows up to 4 Members or Trustees in a Fund.
      You can therefore add another Member to your existing SMSF. See the steps noted above.

      2. How much will it cost if you set it up ? – There’s no regulatory charge to add in a Member, hence we do not charge for this function if your SMSF is under our administration.

      3. Does new member needs to have separate bank Acc ? – No, the SMSF will continue with its own bank account and the new Member can add his initial roll-over into the SMSF bank account and can also add his regular super contributions directly to the bank account of the SMSF.

      4. The land has two existing trustees name on it. Do I need to add his name even though only two months left for settlement – Not a legal requirement for the 3rd Member to be a Trustee of the Custodian Trust.

      I take it you have set up a bare trust structure similar to the diagram noted here in order to allow for the existing borrowing that is in place:

      http://www.smsfwarehouse.com.au/smsf-investments/property/investment/

      Trust this gives you the guidance, see our website for more details.

  • Brett

    I am wanting to add a family member to our SMSF. Is the following wording okay to include in minutes under 2. New Trustee in Fund, as he is not yest 18.

    The Trustee hereby decide to not add ____________ as a Trustee to the Fund due to _______ being under a “Legal Disability”. It is understood that Josiah does not have a legal personal representative. ________’s parents (________________) are both Trustees of the Fund.

    • superannuationwarehouse

      Brett,

      I note the wording you have and this can be used. However, another way to articulate may be as follows:

      The Trustees note that Josiah is added into the Fund as a
      Member. Usually, a Member also needs to be a Trustee of the Fund. As Josiah is under the age of 18, he is unable to be added into the Fund as a Trustee. Therefore, Josiah will be represented by Person X, who is an existing Trustee of the Fund until Josiah is over the age of 18.

      Trusts this gives you some guidance.

      • Brett

        Yes thank you. Appreciate your time. Brett

  • alexander

    Can an SMSF’s single member be disqualified but the CorporateTrustee company carry on managing the fund with a Non concessional Member as CEO/Director

    • superannuationwarehouse

      The answer is no. Each Member must be a Trustee or Director of a Corporate Trustee. If you are disqualified, you have to close the SMSF down and roll funds to a retail or industry Fund.

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Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has being prepared without taking into account of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.

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