Operating a self managed superannuation fund (SMSF) 26-05-2008
Self managed superannuation fund (SMSF) - checklist
The following checklist highlights some of the more important rules under the SIS Act and the SIS requlations require trustee must comply with.
TRUST DEED
Fund's trust deed must:
- be properly executed
- state the name of the fund
- include a statement that the fund must apppoint a corporate trustee or
that the sole or primary purpose of the fund is to provide old age
pensions.
- who the trustee are
- how the turstees are appointed and how they can be removed from
the fund.
- the power of the trustees.
As a trustee, you are bound by your deed and responsible for any contravention of the rules set out in the deed. For these reasons, it is very important that you know the contents of the deed.
TRUSTEES AND MEMBERS
fund is a self managed superannuation fund because it meets all these requirements:
- there are four or fewer members in the fund
- all members of the fund are trustees of the fund (or directors of the
the trustee company
- each individual trustee of the fund, or director of the trustee company, is
is a member of the fund
- no member of the fund is an employee of another member of the fund,
unless those members are related
- no trustee of the fund receives any remuneratiion for their services as
a trustee.
for single member funds:
- the member is the sole director of the trustee company
- the member is related to the other director of the trustee company
(and there are only two directors of that company)
- the member is not an employee of the other director of the trustee
company (and there are two directos of that company)
- the member is one of only tow trustees, of whom one is the member
and the other is a relative of the member, or
- the member is one of ony two trustss and the member in not an
an employee of the other trustee, and
- no trustee of the fund received any remuneration for their services as
trustee.
ELECTING TO BE REGULATED
An election that the SIS Act is to apply to the fund was lodged with the ATO within 60 days of establising the fund.
TAX FILE NUMBER
The fund has its own tax file number
AUSTRALIAN BUSINESS NUMBER
The fund has its own Australian business number.
TRUSTEE DECLARATIONS
- each new trustee appointed after 30 June 2007 has singed a declaration
in the approved form stating that they understand their duties as trustees.
- the declaration will be retained for at least 10 years.
- the declaration is available on request by ATO or fund's auditor.
SEPARATE BANK ACCOUNT
A separate bank account has been opened so that money belonging to the fund can be kept separate from accounts of the members, the trustees and related employers(employer-sponsors).
This is very imporant to prevent the fund contravening in SIS Act rules and also assists trustees in preserving and protecting their retirement income.
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Copyright - 2009 MJC & CO. Pty Ltd
The information contained in this site is general and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Users should not act or fail to act on the basis of information contained herein.
