Video transcript – What’s involved with an SMSF
So you’re thinking about starting your own self-managed super fund. That’s great - but are you aware of what’s really involved?
Let’s take a quick look at a typical self-managed super fund.
When you first set up, you need to:
- decide on fund members and trustees
- establish the trust and trust deed
- set up a bank account
- register with the ATO
- create your investment strategy, and
- include a plan for when your SMSF ends.
There’s more to consider once set up, including:
- rolling over of existing super
- organising employer contributions
- accepting contributions within limits
- making investments without breaking rules
- regularly reviewing the investment strategy, and
- documenting and maintaining records for up to 10 years.
Then, each year you need to:
- value assets
- prepare accounts and financial statements
- appoint a registered self-managed super fund auditor
- lodge the annual return
- pay the self-managed super fund levy, and
- any tax that’s due.
When you start making payments, you need to:
- decide if any assets need to be sold
- ensure minimum payments are met each year
- and you may also need to
- appoint an actuary
- withhold tax, and
- give payment summaries to members, as well as the ATO.
Finally, when the fund is finished, you need to:
- get a final audit, and
- lodge your final return
- plus, you’ll also need to
- pay any outstanding tax, and
- pay out or roll over all of the assets.
As you can see, there is a lot involved. Before you decide to start a self-managed super fund, you need to consider whether you can manage everything, or whether you are prepared to pay self-managed super fund professionals to help. But remember: even if you have professionals help, SMSF trustees are ultimately responsible for their fund.
You may want to seek some professional advice to help you decide if a self-managed super fund is right for you.
For more SMSF information, take a look at our other videos - or visit the ATO website at ato.gov.au