SMSF Setup

If you have decided to set up an SMSF, Superannuation Warehouse can execute the SMSF (Self-Managed Superannuation Fund) setup at a cost of $350, using Individual Trustees. The standard SMSF setup is for two or more Individual Trustees (maximum 4). If Trustees want to use a Corporate Trustee, we charge $1300 for the Pty Ltd Company setup. However most Funds are set up using Individual Trustees. For the advantages of using a Corporate Trustee, see the page explaining pros and cons of using a Corporate Trustee.

A Trustee has the responsibility to ensure that their SMSF complies with ATO rules. Therefore, before you set up an SMSF, the ATO expects the same level of discipline from your personal tax affairs. If you have any personal tax returns or debt outstanding, the Tax Office will not issue an ABN or TFN required to set up the Fund. If you are associated with any outstanding tax return or debt, please do not proceed with this application.

In order to instruct Superannuation Warehouse to set up your SMSF, simply complete the form below.  As soon as we receive your application, we’ll phone you to confirm your details (so no problem if there’s a typo in the document) and start the setup process.

Applying Online

An SMSF name doesn’t have to be unique. A typical SMSF name might be “Smith Family Super Fund”. A Fund’s unique identifiers will be its ABN (Australian Business Number) and TFN (Tax File Number).

Some guidelines and regulations when setting up an SMSF are as follows:

  • An SMSF must be an indefinitely continuing Fund.
  • An SMSF’s sole purpose is to provide superannuation benefits to Members upon reaching a prescribed age or upon their retirement, death, or other cessation of employment.
  • From 1 January 2015, it is an ATO requirement that an SMSF must be activated and holds assets at the time of establishment. For this reason, the initial SMSF application fee that you pay to us when setting up the Fund will be treated as a personal contribution to the Fund to meet this ATO requirement.

Binding Death Benefit Nominations are optional. If you do make a nomination for death benefits, it will be added into the Trust Deed. A Binding Death Benefit Nomination could be something like this, “On the death of Member 1 the total benefit should go to my wife Suzie Smith”.

When setting up an SMSF, you can use Individual Trustees or a Corporate Trustee. Click on a button below to instruct us to set up your SMSF.

What Happens Next

We will receive an email confirmation once you have submitted this form. We will call you within 4 hours (during office hours) to confirm your details and set up the SMSF. Rest assured we will not set up a Fund before we speak to you.

Delivery Policy

As mentioned above, an SMSF must hold assets when it is established thus, payment must be paid at the time you submit your SMSF application to us. Our Delivery Policy is that Trustees pay for services rendered as per the fee schedule noted above after which we will deliver our services.

  • Michael Nau

    May I ask if I could get into a SMSF even with only $30000? If so is there one that let’s me invest in physical gold/silver?
    Or do you think that my ongoing expenses would be too high for $30000? Thank you. Michael

    • Hein Preller

      Michael,

      With the strict rules around advice in Super, we can’t legally give you advice if its a good idea to set up an SMSF and whether its right for you. We can, however, give you some factual information for you to make this decision.
      As the cost of running an SMSF is mostly fixed, it does make it relatively expensive if your balance is relatively low. There is no legal minimum or maximum amount you are allowed to have in an SMSF. Factors you can consider when deciding whether to set up an SMSF are as follows:
      1. Decide how long you are going to contribute to super, if you have many years ahead of you, it might be sensible to set up the structures now, even with a low balance;
      2. In an SMSF you have control over costs, as you know the total cost for running the Fund, there’s no Trustee fees to pay or investment managers to pay as you act as Trustee for the Fund and can’t pay yourself for these services;
      3. Keep your operating costs to a minimum if you have a low balance, so use a cost-effective accountant like Superannuation Warehouse and use a bank account that is fee-free;
      4. An SMSF gives you access to investment classes not available in retail funds for example precious metals and direct investments in property; and
      5. Consider adding another Member to the Fund, e.g. a spuse, friend or child. This gives you economies of scale and make make it more worthwhile to run an SMSF.
      Lastly, an overall investment strategy you can use is to utilise the SMSF for a specific strategy, for example investing in precious metals. The remainder of your super you can leave in an industry fund for them to manage your exposure to shares and you therefore do not put all your eggs in one basket.
      Trust this gives you some guidance
      Hein

      • Michael Nau

        Hein what happens if I’d manage to bring a friend aboard and go with the $39 option? As there are two people now is it that each one minds their own business (invests/buys/sells whatever shares/gold bullions etc) or would there be the need for a singular decision which then would affect both super funds every time commodities are bought/sold?
        If I go with the $79 version I understand that all decisions affect only me as I’d be the only one in there…now if I’d decide to invest in physical gold/silver only (I really want to get out of shares asap as I believe it’ll deeply crash soon) how do i pay the monthly $79 out of the SMSF? Buy some coins and sell them every month? Not to forget the $1100 set up fees for Corporate Trustee SMSF. Your efforts are greatly appreciated!

        • Hein Preller

          Michael, the second Member in the Fund will be closely associated with you. The second Member is usually a spouse or a good friend. The Fund should have a central bank account to operate from and accept contributions, so the affairs of the 2 Members are closely intertwined.
          The $39 option is for cash and term deposits only. Once you buy and sell other assets in the Fund, the accounting and tax tasks become more complex, hence the higher fee of $79.
          Leave enough cash in the Fund to pay our accounting fee and to ensure if there’s any other expenses, pensions or tax to be paid there’s adequate liquidity to settle these.
          As part of the accounting process, we will allocate the earnings in the Fund to the Members. This is calculated on a daily weighted basis, meaning the Member with the higher balance will get a bigger slice of the pie.
          Lastly remember you can be a sole Member in the Fund, with the second person acting as a Trustee only and therefore no financial interest in the Fund.

  • Michelle Groove

    I’m in NSW. Does the SMSF trust deed need to be registered with Land and Property Information (LPI) and if so do you do this? Thanks.

    • superannuationwarehouse

      Michelle,
      I take it you refer to the steps when an SMSF purchase a property. The conveyancer or lawyer will arrange for the property to be registered in the name of the SMSF. We are accountants, so therefore we lodge tax returns and prepare financial statements for SMSF’s, we don’t do legal or conveyancing work.
      For some general guidance when an SMSF purchase property, see our property page:
      http://www.smsfwarehouse.com.au/smsf-investments/property/investment/
      Trust this gives you the guidance needed.

  • David

    HI There – is there a minimum balance to set-up an SMSF. I am wanting to set up an SMSF with my wife. Transfer our existing Super as there are several opportunities I wish to start taking control of. Our combined balance will be a minimum of $130,000. With estimated investment returns being between 8-10%pa

    • superannuationwarehouse

      David,

      There’s no legislated minimum to have in an SMSF. Its purely up to you when to start it. Factors to consider is how much you have in super now, your future potential earnings and contributions into super and the type of investments you want to make via an SMSF.

      Thanks

      • Nathan Kidd

        Hi. Im based in nz and wish to explore POA with smsf. I have an existing balance to transfer and want to ensure residency in Australia is maintained. Any help appreciated thanks

        • superannuationwarehouse

          Nathan,
          My understanding is a POA must be executed when you are in Australia, in order fro the SMSF to meet residency requirements.
          We give POA templates for download here:
          http://www.smsfwarehouse.com.au/smsf-education/power-of-attorney/
          Lastly, for specific guidance on your SMSF, you can phone the ATO or request written advice.
          Trust this gives you the guidance needed.

  • Robert Page

    Hi,

    i would like to boost my retirement savings by investing in cryptocurrency – bitcoin

    from reading your site, this is permitted using your trust deed and an appropriate investment strategy

    i already have an SMSF with a corporate trustee and with myself as a sole director since i am the only member, although the trust deed of that SMSF does not permit investing in cryptocurrencies

    can i use the same trustee company for multiple SMSF’s as long a the directors of the trustee company are also members of each fund?

    what would be my setup cost to you if i BYO trustee company ?
    What would be the annual running cost of this smsf, including audit if the only investment was crypto currency ?

    Thanks

    • Hein Preller

      Robert,

      An SMSF can invest in virtual currency, on the basis the Deed and Investment strategy allows for it. Remember you can update the Investment Strategy if required. We give a download for an investment strategy template here that can be edited to agree with your SMSF investment objectives:
      https://www.smsfwarehouse.com.au/smsf-investments/strategy/

      We also give some guidance on Bitcoin and virtual currencies in an SMSF here:
      https://www.smsfwarehouse.com.au/virtual-currency/

      On your question if you can use the same corporate trustee for more than one SMSF, yes, this can be done but a more efficient way may be to use your existing SMSF if you do have one in place already.

      Keep well,

  • Paul

    I’d like to purchase a property as a SMSF investment and in say 10 years purchase that property from the SMSF with the proceeds of my principal residence sale. I’d then like to use the cash balance in the SMSF to invest in a different asset class (probably shares). This is a strategy to buy a retirement home and boost Super balance while allowing for a substitution of assets down the track to ensure distributions are tax free in my hands as an income stream from a super fund.

    • Hein Preller

      Paul,
      You obviously have a good understanding of the rules in considering this strategy.
      Legislation makes that related party can’t sell a residential property to an SMSF. But the SMSF can sell a residential property to a related party, in this case you. When selling the property from the SMSF to yourself, make sure its sold on an arms-lenght basis and commercial terms. Another strategy to consider is making sure the property is part of your pension phase, resulting in the potential capital gain to be taxed at NIL.
      Keep well,

  • Angela

    Hi I was wondering whether you can set up a SMSF only and we look to manage it ourselves and have you audit it when necessary? Or do you need to manage it ongoing?

    • superannuationwarehouse

      Angela,

      Sure thing we can set up an SMSF only and you take it on from there. You can write down this instruction in the notes section when you apply for the SMSF or discuss it when we give you a call to confirm the SMSF application.

      You can then act as the accountant for the SMSF. There’s free SMSF software you can use called McClowd or you can download an Excel template to use as a basis for the financial statements preparation. We give the template here:
      https://www.smsfwarehouse.com.au/smsf-setup/how-to-setup-a-smsf/diy-smsf/

      When it comes to the audit, we can then perform an audit only for your SMSF. The steps and guidance for the audit of an SMSF as well as an audit quote is here:
      https://www.smsfwarehouse.com.au/smsf-audit/instant-audit-quote/

      It is your SMSF, but we will obviously help you as much as we can in the process.

  • Donna

    I am 58 and husband is 51. Both from UK but now Ozzy citizens. We both have a lot of work pensions in UK and want to get them into a QROPS SMSF to let us start investing in a unit. We would have enough for a deposit (in my name) for a unit and would have to borrow from a bank. Is it best to set up as individuals or Corporate. If we needed to just start with me then could my husband put his pensions in the same

  • ME

    I will be eligible for a old age pension at the end of 2018. I want to setup an SMSF to purchase precious metals. To fund this, I plan to roll over some of my industry superannuation fund account into the SMF.

    Can I do this? Is this an OK thing to do? Is there anything I need to know or should be aware of that may prevent me doing it, cause loss me loss or increased risk?

    thanks

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Me,

      My understanding is that an SMSF is no different to an industry super Fund as far as limits for the age pension goes. So to transfer super from one super account to the next will not affect the thresholds for the age pension.

      You can set up an SMSF if you want. Nothing saying you can’t do it due to an age limit. Maybe read up and do some online training to make sure you know whats involved:
      https://www.smsfwarehouse.com.au/smsf-education/

      If you are running the SMSF yourself, you may have more risk. So be really careful on how you invest and make sure your capital is protected.

      Remember we are not a financial advisor and do not assist you in investment choices. Its all your decisions. So a lot of responsibility on you in the position of Trustee.

      Keep well,

  • ME

    My SMSF will have my name and the ABN as its full name. What legal notation should it be, Pty. Ltd., Proprietary Limited, No
    liability or NL?

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Me,

      You can use any name for the SMSF, as long as its not offensive or misleading.

      People usually use a surmane and the add SMSF at the end. For example, use Smith SMSF or ABC Super Fund.

      Keep well,

      • ME

        Thank you for your reply, but should it be PTY LTD, Pty Ltd, Priority Limited, No Liability, or NL?
        thank you
        kevin

        • https://www.smsfwarehouse.com.au Superannuation Warehouse

          Me,

          An SMSF is not a company and the usual way to describe it is SMSF or Super Fund.

          Pty Ltd refers to a private company that can be a corporate Trustee.

  • ME

    I will be eligible for a aged pension at the end of the 2018 year. I am now in the process of establishing a SMSF and plan on rolling over some funds from my industry superannuation account, into my SMSF to make investments which I cannot make through the industry fund.

    Is there anything I should be aware of or know about that may cause issues regarding loss of money or additional risk?

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Me,

      Being a Trustee means you manage the Fund. Make sure you don’t loose your capital.

      If unsure, rather leave the money with your industry super Fund. Having an SMSF is a responsible position and does carry extra risk.

      As an accountant and tax agent we will assist you to ensure compliance to the ATO rules and lodgement requirements. Unfortunately we cant give investment advice, so we don’t have the magic answer of what to invest in.

      Keep well,

  • Sean Michael Pender

    Hi
    i want to be able to purchase assets and borrow to purchase property with my SMSF–is this allowable with your super setup?
    Lorrae

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Lorrae,

      When we set up a new SMSF we issue a Trust Deed and default Investment Strategy allowing for a wide range of investments. As the accountant for your SMSF, we do not place limitations of what your SMSF can invest in. Be mindful that the investment options you consider are allowable investments as per ATO guidelines.

      We can also execute the setup of a Bare Trust structure allowing the use of loans in an SMSF environment. For further guidance on a typical Bare Trust structure in an SMSF, see here:
      https://www.smsfwarehouse.com.au/smsf-investments/property/investment/

      Trust this is helpful.

  • Craig Smith

    Hi, are the initial set up cost’s paid via the smsf or personal funds ?…thanks…Craig

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Craig,

      When you apply for an SMSF, the Fund is not set up and therefore the Fund can’t pay the expense. You therefore have to pay for it in a personal capacity.

      The initial payment will be regarded as seed money to establish the SMSF, similar to a seed contribution when setting up a family trust. We discuss the tax deductibility, treatment of the expense and ATO rules here:
      https://www.smsfwarehouse.com.au/smsf-setup/costs/tax-deductability/

      After this point, all other expenses are paid from the SMSF.

  • Craig Smith

    Hi…are you guys licensed to give financial advice or have you a list of financial advisors you work with ?
    We would like to explore commercial property via smsf, are there advisors for guidance ?…thanks…Craig

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Craig,

      Superannuation Warehouse is an accounting firm and we do not provide advice. The decision whether to set up an SMSF and what to invest in is your choice.

      If you so choose, you can use a Financial Advisor. For guidance on the use of advisors, see our page here:
      https://www.smsfwarehouse.com.au/financial-advice/

      Trust this answers with your question.

  • viki james

    Hi, Hubby and I are looking to setup a QROPS approved SMSF, to transfer a relatively small fund from the UK, but there does not appear to be an option for this in your online setup. Is it just something we add in the ‘comments’ section at the end of the application? Also, there are a couple of other issues i would like clarification on please, firstly, being 68 years of age my husband has obviously passed retirement age but is still working as a sole trader and more than qualifies for the > 40 hours per month requirement. Is this still the only working requirement for transferring a pension fund from the UK when you have passed retirement age? Secondly, which again is an age question, because of our age we would probably only keep the fund open for a couple of years, is there a compulsory minimum period that a SMSF has to remain open?
    Kind regards

  • Tony

    Hi Hein,
    We were thinking setting up SMSF to purchase a property, so can we setup the SMSF account first while we still leave our super funds with our existing ones, after we find the property then we can transfer our super fund to this SMSF to proceed with the purchase? since we do not want to have to fund sitting there doing nothing.
    Another question is, can we include our children as the members in the SMSF when setting up, even though they have not start working yet?
    Kind regards
    Tony

    • https://www.smsfwarehouse.com.au Superannuation Warehouse

      Tony,

      Thanks for posting. The strategy noted where you want to roll some funds to the SMSF after a property purchase is perfectly fine. Just be mindful the retails funds sometimes drags their feet to release your funds to the SMSF. Make sure you are not left out of pocket before settlement. See some guidance on the roll-over process here:
      https://www.smsfwarehouse.com.au/transfer-benefits-into-smsf/

      You can add minor children to the SMSF. They will need a Tax File Number to be added in. Until such time they become of age. i.e. 18 years old, you can be their representative in the SMSF. So they can be a Member but need to be 18 to be a Trustee or Director of the Corporate Trustee.

      A strategy you may be able to use is making a non-concessional contributions for them and then receiving the government co-contribution of 50 cents in the dollar, up to $500. More guidance on the low-income super contribution here:
      https://www.smsfwarehouse.com.au/government-co-contribution-to-smsf/

      Keep well,

  • Rich

    Hello great forum – thank you. Can I ask – for an existing SMSF, if you change trustee from 2 Individuals to a company (and add a new member to that company) does that change/ affect the status of the existing /original members balances particularly if they have an older style defined benefit fund that pays a complying pension?

    • Hein Preller

      Rich,

      Changing the Trustee structure does not affect the current Members, Member balances or tax components of the Member balances. If you add a Director in the Corporate Trustee, be mindful this person then has to be a Member as well. More guidance on Trustee structures in the Trustee booklet from the ATO here:
      https://www.smsfwarehouse.com.au/smsf-guide/

      Keep well,

      • Rich

        Thank you very much

  • Guy

    Hi Superannuation Warehouse,

    I have been looking at a raft of information regarding setting up an SMSF and have found your website informative and prepared to share advice through the comment section (open source so to speak) = thank you. I have a couple of questions arising please:

    – You are the only one of all the many providers I had read to specify that if one has an outstanding ATO obligation – do not apply for a SMSF. Does this extend to the fact that my wife & I have not yet lodged our personal tax returns for the last FINYR ending 30 June 2018?

    – Perhaps I have info overload but I am not clear on whether you set up the SMSF bank account (or the trustees do that using the deed at a complying bank of their choice e.g. CBA).

    – There is conflicting info out there – perhaps you can clarify once and for all for me – can I set up a corporate trustee with only myself as director and member or MUST there be a second director e.g. my wife?

    – I am interested in using my SMSF for investing in crypto currencies – do you allow that? We are experienced in this space and have numerous coins/tokens in our personal portfolio. I understand absolutely that the crypto needs to be purchased in the name of the SMSF and it will be stored in a hardware wallet offline in a safety deposit box (PerthBullion.com or similar).

    – And finally, I have a small pension fund from a 2 year stint in London 20 years ago which I’d like to bring over here so am interested in QROPS. What is not clear is whether the 55 year old limit is a restriction on setting up a QROPS compliant SMSF or merely the earliest one could draw down. (I am 53).

    Thanks in advance.
    Guy

    • Hein Preller

      Guy,

      I tried answering all your questions before. The many links I gave got the website to mark my response as spam. So I am having another go. I will answer the first question comprehensively and the remainder briefly. Trust this will do the trick.

      The ATO use your personal TFN to assess your ability to act as Trustee. If there’s previous years’ tax return outstanding for either yourself or entities you are responsible for, its likely they will refuse your appointment as Trustee. The ATO conduct random audits on newly set-up funds, but a bad tax history increase the chances to be selected for an audit. Hence our request to ensure your tax affairs are in order. For returns outstanding but not yet due – no issue there.

      Regarding a Corporate Trustee – you can go it alone. More guidance here:

      https://www.smsfwarehouse.com.au/smsf-setup/corporate-trustee/

      We discuss crypto currencies and QROPRS on this website. Use the search function on the top of the page for guidance. Let me know if there’s questions you have thats not addressed.

      • Guy

        Thanks Hein.

  • Lucas

    HI,

    I’m hoping you can advise of the best way for me to move forward with the below.
    I have approximately $100,000 with MLC. I have been given the opportunity to purchase a share of 2 properties in the UK approximately $50,000. These both represent fantastic investment opportunities.
    How is the best way to go about this?
    Is this at all possible?
    If this is possible, how might I go about funding these as payment is required overseas?

    Thanks,
    Lucas.

    • Hein Preller

      Lucas,

      If you want to execute the scenario above, the first step it to open up an SMSF and roll funds in the SMSF bank account.

      When an SMSF invests in overseas property, it can be for the complete property or it can be a tenant in common (shared ownership). As overseas countries dont recognose SMSF’s, you may have to set up a Declaration of Trust for each property to ensure the SMSF is the legal owner of the asset:

      https://www.smsfwarehouse.com.au/smsf-investments/property/overseas-property/

      Make sure the investment strategy allows for this type of investment. We can set it all up in a compliant way.

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