SMSF FAQ

A SMSF (Self-Managed Super Fund) is a superannuation fund you manage yourself. You control the investments and decisions, but you’re also responsible for following super rules, keeping records, and organising audits. It offers flexibility and control but requires time and responsibility.

An Australian resident over the age of 18 can set up an SMSF. Individuals seeking more control over their superannuation investments typically establish their own Self-Managed Superannuation Fund.

An SMSF can have up to six members. This is beneficial for families or small groups who want to pool their superannuation balances together.

There’s no minimum amount required by law to set up an SMSF. However, in practice you need to have enough in SMSF to make it cost-effective as SMSF’s will have fixed costs like accounting, audit, compliance etc, so smaller balances can be less efficient.

The process involves checking eligibility, deciding trustee structure – individual or corporate, establishing a trust deed, appointing trustees, obtaining a tax file number (TFN) and an Australian business number (ABN) for the fund, and setting up a bank account in the fund’s name and preparing an investment strategy.

An SMSF cost includes initial setup or establishment fees, annual accounting and audit fees, ATO supervisory levies, charges tied to investment holdings, and ongoing administrative costs. If using autoSMSF, you will pay fix setup cost. Check our fixed cost under Services.

Trustees of an SMSF are responsible for managing the fund’s investments, complying with relevant laws, keeping accurate records, and ensuring the fund is solely for the purpose of providing retirement benefits to its members.

SMSFs can invest in a wide range of assets, including cash, term deposits, shares, property, managed funds, collectibles (under specific regulations), and more. However, there are restrictions and regulations that must be followed.

Yes, under certain conditions, an SMSF can borrow to invest in property or other assets through a Limited Recourse Borrowing Arrangement (LRBA), subject to strict borrowing rules.

Yes, a SMSF can invest in cryptocurrencies, but there are strict rules you must follow. Basically, your SMSF can invest in crypto as part of its investment strategy, but it must follow all super and tax rules. While there are high risks, getting professional advice from financial adviser could benefit your financial goals.

You can invest in gold or silver in your SMSF in different ways. You can choose Gold or Silver ETFs, which track metal prices without needing to physically own them. Another option is holding bars or bullions, but it comes with extra rules and insurance needs. Just think about what suits your investment goals and how much risk you’re comfortable with.

In an SMSF, you can invest in shares in two ways: listed or unlisted. Listed shares are traded on stock exchanges, providing easy buying and selling using a broker account under SMSF name. Unlisted shares are not on public markets, less liquid, and often involve longer-term commitments, like private companies.

Managed funds pool money from many investors and are managed by professionals across assets like shares or property. In a SMSF, trustees choose a suitable fund, invest, and receive units. The fund manager handles the investments, while the SMSF receives updates and any income distributions. Trustees still need to ensure the investment fits their strategy and SMSF rules.

You can only buy property through your SMSF if you comply with the rules. The property must meet the ‘sole purpose test’ of solely providing retirement benefits to fund members. A residential property cannot be acquired from a member or related party of a member.

Yes, a SMSF can buy commercial property. It must be for investment purposes and follow SMSF rules. The property can be leased to your own business, as long as it’s at market rates and on commercial terms. Borrowing is allowed but must be structured correctly (LRBA).

You can lodge a paper annual return by downloading the SMSF annual return and SMSF annual return instructions from the ATO website for the relevant year. Even if your SMSF is straightforward, it’s crucial to engage a professional SMSF accountant. This is because SMSF finances are different from regular finances, and a good understanding of SMSF terms and rules is needed to fill out the paperwork correctly.