The first step in considering an SMSF is to do your research. It’s important that you are aware of the benefits and costs of an SMSF as well as your responsibilities as trustee to ensure you make the right decision on whether an SMSF is right for you.
Before getting started, we would recommend reading the following topics:
- What are SMSFs?
- Can anyone have an SMSF?
- What are the benefits of an SMSF?
- If an SMSF is right for me?
In order for us to set-up your SMSF and investment account you will
need to complete an application providing us the following details:
- A name for your fund and (if applicable) a name for the company you’re
setting up to be the trustee of your fund
- For all members, trustees and/or directors:
- Legal Name (including middle
names) – this must be the same as their name on official documentation such
as passports, drivers licence, etc.
- Date of birth
- Place of birth (town and state
if within Australia or Country only if outside of Australia)
- Tax File Number
- Contact details (phone number
and email address)
- Street Address (where the person
normally lives, not a PO Box or their work address)
Receive and sign the establishment documents
Once Heffron have received your application, we
will start setting up the fund. You will receive a fund establishment pack by
post for you to review and sign.
The establishment pack includes all documents
needed to establish your SMSF. It comes clearly marked explaining what you
need to do and shows where you need to sign and date. We aim to have the
fund establishment pack issued in less than four business days from the time
we receive all correct information from you.
Heffron reviews executed documents and register
the fund with the ATO. Once we receive the signed documents back,
Heffron will conduct a final review of the executed documents to make sure
they have been signed, dated and witnessed in all the correct places.
Once we’ve done this, we’ll register the fund
with the ATO on your behalf. The ATO will allocate a tax file number (TFN)
and an Australian Business Number (ABN) to your fund. This may take up to 28
days, however in our experience it is generally quicker.
Once Heffron has established your SMSF, you can then start depositing
money into your fund, including rolling over your existing super balance and
redirecting any employer contributions to your SMSF.
Rollover your existing super
When you first set up an SMSF you will likely have money in another
superannuation fund that you want to transfer to your SMSF. This type of
transfer is called a "rollover."
If you're going to close your old super account and move it all to
your SMSF, you can complete an ATO rollover form and send it to your old
super fund. If you have more than one super fund, you will need to complete a
separate form for each fund.
If you want to leave some money in your old super account, you will
need to contact your old fund and ask them for the forms to transfer only a
portion of your balance to your new SMSF.
Redirect employer contributions to your SMSF
If your employer is going to contribute to your SMSF, you’ll need to
give them two documents:
- A completed Superannuation (Super) Standard Choice Form. If your fund was set-up by
Heffron this was included in your Welcome Pack. If you join a new employer after
your SMSF has already been established, simply complete another form and
provide it to your new employer.
- A document confirming the fund
is recognised by the Australian Taxation Office as a regulated fund. You can
locate and print a copy of your fund's status by searching your fund ABN or
name in the Super Fund Lookup Service.
One of the things you will need in order to complete the Superannuation
(Super) Standard Choice form is your fund's "Electronic Service
Address" (ESA). This is like an electronic post box for your fund. When an
employer makes a super contribution for you, they are required to send a
message to your fund’s electronic post box that tells you or your
administrator who it is for, what sort of contribution it is, how much it is
and who it is from. While your fund is being looked after by Heffron, your ESA
the great things about partnering with Heffron is that we collect most of the
information we need directly from your investment providers without any involvement
from you. We collect data feeds for investments like bank accounts and
trading accounts so you don't need to collect bank statements or portfolio
reports and send them to us. We may have to ask you questions from time to
time but much of the administrative burden is removed from you.
need to contact us if:
- You set up a new investment – such as buying a property. We
will do what we can to streamline the exchange of information between us and
your other investments to minimise the effort required from you.
- You take out insurance – we will need a copy of
the policy and details of the premiums you're going to pay.
- You want to do something like start a pension,
pay out some of your super in another way, pay out super for another member
who has died etc.
these things result in additional administration costs – see our service page to understand what
affects the administration costs for your fund.