SMSF Setup Guide
What is an SMSF and how does the setup process work?
If you’re considering a self-managed super fund (SMSF), it’s important to understand both how an SMSF works and what’s involved in establishing one. Here we explain the basics, the responsibilities that come with managing an SMSF, and the practical steps and timeframes involved if you decide to proceed.
What is an SMSF?
A self-managed super fund is a private superannuation fund managed by its trustees. The members of an SMSF are generally also the trustees, or directors of a corporate trustee, which means they are responsible for the operation of the fund and ensuring it complies with superannuation and taxation laws. Subject to superannuation law, an SMSF may invest in a range of permitted investments, including shares, property, precious metals and other asset classes. With that control comes responsibility. SMSF trustees are responsible for decisions about the fund, its investments and ensuring its ongoing legal and compliance obligations are met.
Is an SMSF suitable for you?
An SMSF is not appropriate for everyone. Whether an SMSF is suitable for your circumstances will depend on a range of factors, including the costs involved, your objectives, the responsibilities of being a trustee and how an SMSF compares with your existing superannuation arrangements. Freedom Financial Partners can provide general information about SMSFs and explain the establishment and administration process. If you need advice about whether an SMSF is appropriate for your personal circumstances, you should consider obtaining advice from a suitably licensed Australian Financial Services (AFS) licensee.
Important: This website contains general information only. It is not personal financial advice and should not be relied upon as a recommendation to establish an SMSF.
Decided to proceed? Here's what happens next.
If you decide to establish an SMSF, our team will guide you through the administrative process from your initial order through to establishment, registration, banking and rollover. There are things we take care of and things we’ll need you to do along the way. We’ll let you know what’s required and keep you informed throughout the process.
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1.
Complete your SMSF setup order
You complete and return your SMSF setup order form and provide the information and identification documents required for our AML/CTF due diligence process. This includes information such as your TFN, Director Identification Number, identification documents and rollover instructions. Allow approximately 1–2 days for our AML/CTF due diligence review. Once this review is complete, we'll invite you to pay your setup deposit and we can begin preparing your establishment documents.
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2.
We prepare your establishment documents
Once your deposit has been received, we prepare the legal documents required to establish your SMSF. While we do this, you can research and decide which bank you would like to use for your SMSF bank account. Allow approximately 1–2 weeks for preparation of your establishment documents. When the documents are ready, we'll send them to you for signing.
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3.
Sign your documents and register your SMSF
You return the signed establishment documents and finalise your rollover instructions. We then apply for your SMSF's ABN and TFN and let you know when your fund has been marked as complying on Super Fund Lookup. We'll also provide information and documents likely to be required by your chosen SMSF bank. Allow approximately 1 week for this stage under normal circumstances. In some cases, the ATO may review the SMSF registration, which can add 28 days or more to the process. If the ATO requests further information or an interview, our team will support you through that process.
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4.
Open your SMSF bank account
You complete the application with your preferred SMSF bank. Allow approximately 1–2 weeks for the bank to process your application. Once the account is open, you send us the account details and a bank statement so we can move to the rollover stage.
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5.
We request your rollover.
Once we have your SMSF bank details and required supporting documents, we prepare and lodge the relevant authority documentation and request the rollover of your super from your existing fund or funds. We'll let you know once the rollover has been requested and provide your final setup instructions. Allow approximately 1–3+ weeks for your existing super fund to transfer the money.
How long does the whole process take?
As a general guide, you should allow approximately 4–6 weeks from receipt of your completed order until your superannuation funds are received into your SMSF bank account, provided the required information is supplied promptly and there are no external delays. The exact timeframe can vary because several stages involve third parties, including the ATO, your chosen bank and your existing superannuation fund. We’ll keep you informed throughout the process and let you know if anything is required from you to keep things moving.
Before you start.
There are a few things you can do before submitting your order to help avoid unnecessary delays.
- Have your Director Identification Number ready — If your SMSF will have a company as its corporate trustee, you must obtain a Director Identification Number before you can be appointed as a director. A Director ID is unique to you and you only need to apply for it once, regardless of how many companies you may become a director of.
- Think about your SMSF bank — You'll need to choose the bank you want to use for your SMSF account. You can research this while your establishment documents are being prepared.
- Consider your rollover instructions — Your rollover may be full or partial. For example, if you have insurance through your existing super fund, you may decide to retain a balance in that fund while considering your insurance arrangements. If you require advice about your insurance, investments or whether a particular course of action is appropriate for you, you should seek advice from a suitably licensed professional.
Have more questions?
Our comprehensive SMSF FAQs cover everything from establishing your fund and choosing trustees to banking, rollovers, investments and ongoing administration.
Ready to proceed?
If you’ve considered your circumstances and decided to establish an SMSF, we can guide you through the process and help keep things moving from setup through to rollover.