What Is A Self Managed Superannuation Fund (SMSF)?
An SMSF, (sometimes referred to as DIY Fund) is a superannuation fund with fewer than five members, all of whom are usually family or business related.

All Trustees must be members and vice versa up to a maximum of 4 with the exception of a single member fund. If you only want a single member fund then you must have a second Trustee (all Funds must have a minimum of 2 Trustees), or a corporate trustee.

What Are The Advantages Of An SMSF?
SMSF’s give members unique control of their investments (within the legal framework). Because of this, members feel more comfortable about having their money in superannuation. SMSF’s are generally very cost effective, and present opportunities for more meaningful integration of super into a member’s total investment portfolio and retirement planning.

Who Should Have An SMSF?

• SMSF’s are more cost effective when their assets reach about $250,000, so investors aiming to reach this target in a short timeframe should consider setting one up.

• Investors looking for control over their Fund’s assets who are prepared to work at managing their investments.

• Executives or professionals with superannuation choice.

• Retirees wishing to start a pension.

• Family groups wanting to take advantage of estate planning.

What Can My SMSF Invest In?
To some extent rules, but mostly guidelines are laid down in the relevant legislation. The funds must be invested with a view to providing for the member’s retirement.

Ask yourself – “Would a reasonable person make this investment with superannuation money?” Provided the answer is yes and all other regulations are complied with then you can proceed.

Can I have A Pension Through My SMSF?
Yes. SMSF’s can pay pensions.

What Do I Have To Do On A Regular Basis To Run My Own Fund?
This depends entirely on how actively you wish to trade your investments. As your administrator Envoy Super will take care of the rest of your paperwork, making the entire process as easy and hassle-free as possible.

The Trustees are responsible for running the Fund and making and actioning all investment decisions. As administrators we mainly get involved at the end of the financial year when we request copies of all of your Fund’s statements and transactions.

However, we do answer any queries you may have during the year in relation to superannuation and what you can and cannot do with your Fund. We would encourage you to check with us first.

The consequences of breaking the rules are dire.

As Administrators we ensure that your fund’s paperwork is in order should your fund be audited by the ATO.

On an annual basis we collate your funds financial information (which you send to us) and prepare financial statements and any applicable returns.

Our fee also includes surcharge reporting PAYG reporting, and any rollover/ETP paperwork (if required).

We do not advise on where/how to invest your super fund money but we can explain the investment rules. To help ensure your fund complies with the legislation we do have a number of contacts – financial planners or stockbrokers who can assist you in this area if required.

How Do I Set Up My Own SMSF?
Firstly do you have sufficient funds to make it viable? We recommend a minimum of $250,000.

To set up a fund you would need to complete our application form and forward a deposit of $330 to our office. We would then instruct the solicitors to draw up the documents.

We forward these documents to you for signing which you then return to us. We then apply for all necessary ATO registrations. Once these have been received your fund can begin operating.

If you want to rollover funds from another institution, we can assist with these once ATO registrations are finalized.