• Transcripts

    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

      Last modified: 12 Nov 2015QC 39855