Self Managed Superannuation Funds

A SMSF is a trust with its own deed and set of rules which complies with superannuation laws, with the fund members being the beneficiaries.

A SMSF has a similar role to any other super fund; however, the difference is that the members of a SMSF are generally also the trustees. They control the investment of the income of the fund (including contributions).

A SMSF needs to meet several requirements. The requirements are different depending on whether your fund has a corporate trustee or individual trustees.

If your fund has individual trustees each member must be a trustee, and must have four or less members.

If your fund has a corporate trustee each member must be a director of the trustee company.

There are other rules which facilitate a single member fund.

A SMSF is most appropriate for investors:

  • Prefer to have direct control over investments and beneficial ownership
  • Prefer greater investment transparency
  • Prefer greater flexibility in the choice of investments and want greater involvement in the investment decision process
  • Wish to take advantage of the greater flexibility and estate planning benefits associated with a SMSF