How to set up an SMSF with Heffron

Before you do anything...

At a minimum we recommend you consider the following before you start setting up your SMSF:

• Check with your lender if planning to borrow to invest in property – Confirm you will be able to set up a special type of loan called a Limited Recourse Borrowing Arrangement (LRBA) within your fund when the time comes. Not all lenders can provide LRBAs and different lenders have different rules for SMSFs – for example, some will only lend to SMSFs that have a corporate trustee.

• GST Registration – Consider whether your fund should be registered for GST. This usually depends on the types of investments you plan to make.

• Consider your insurances – If you are unsure about insurance in your SMSF or want to retain your current insurance you will need to leave some money inside your existing industry / retail fund.

SMSF set up steps

Below we have outlined the steps you will need to take to start your SMSF, including the decisions you’ll need to have made and the documentation you may be required to have ready to progress to ATO registration.

We have included approximate timings for each step.

Step 1. You Apply

To set up your SMSF, you will need to complete this application and provide the following details. Be sure to have them ready before you commence: 

• Your Fund Name

• You will need to have decided on your Trustee structure – either corporate or individual trustee

• If you select a corporate trustee, you’ll also need:

  • A name for the company (check if your preferred name is available here Check Company Name Availability);

  • A Director ID for each director (you can apply here).

• GST Registration – decide whether your fund should be registered for GST. This usually depends on the types of investments you plan to make.

Step 2. You complete your identity check

We will send you a text message with a link to complete an identity check. Consent forms will also be sent to you via our e-signing platform.

Once you’ve successfully verified your identity and signed the forms, we will get started on setting up your SMSF.

Learn more about how we protect our clients identity here.

Step 3. We prepare your Fund Establishment Pack

We aim to post the Fund Establishment pack to you within five business days. The pack includes all the documents needed to establish your SMSF, with clear instructions showing where you need to sign, date, and (if required) have the documents witnessed.

Step 4. You receive your Pack to review, sign, and return

Take the time to carefully review your Fund Establishment Pack. Follow the instructions provided, sign and date where required, and return the completed documents to us. This step is essential before we can proceed with registering your SMSF with the ATO.

Step 5. We review the signed documents

After you return the signed documents, Heffron will review them to ensure everything has been correctly completed and reach out if anything is missing or incorrect.

Step 6. We apply for the ABN and TFN

Once everything is ready, we apply for the Australian Business Number (ABN) and Tax File Number (TFN) on behalf of your SMSF.

The ATO may take up to 56 calendar days (around 8 weeks) to issue an ABN and TFN for a new SMSF. We’ll contact you as soon as these have been issued.

Step 7. We let you know when your Fund is complying

The next step is for the Fund to be recorded as 'Complying' on Super Fund Lookup. This usually takes around 5 business days, but if the ATO undertakes a risk assessment it can extend to several weeks.

One common trigger for these checks is outstanding tax returns for members or related companies. If this applies, lodging these returns promptly may help avoid delays.

We’ll keep monitoring the complying status and let you know once the status is updated.  

Note: Until the SMSF is complying, the Fund CANNOT set up a bank account, members CANNOT roll over funds, and employers CANNOT contribute via SuperStream. 

It’s important NOT to commit to any financial arrangements for your SMSF until it is complying. For example, avoid signing contracts or making binding commitments if you are planning on purchasing property in the SMSF. 

Step 8. We send back your original signed documents

We’ll make sure you have everything you need in a binder for safekeeping. Now you’re ready to get started with your SMSF!

Set up a bank account for your fund

Your SMSF needs its own bank account – it can’t share your personal account or an account you have for any other structure like a family trust.

All assets for the SMSF, including its bank account, need to be in the right name. For an SMSF called the Smith Superannuation Fund where the trustee is Smith Super Pty Ltd, the name of the account would be:

Smith Super Pty Ltd ATF Smith Superannuation Fund

(“ATF” stands for “as trustee for”)

You might need a certified copy of your SMSF trust deed to open its first bank account – Heffron will provide you with one if the original was posted to us (rather than emailed) when we set up your fund.

Let Heffron know as soon as you’ve set up a bank account for your new SMSF as we will need to tell the ATO on your behalf. This has to happen before you transfer your existing super into your new SMSF. If your bank can provide what’s known as a “data feed”, we will also set that up so all the transaction information is automatically sent to our systems. This saves you a lot of hassle when it comes to tax time!

Legally an SMSF can hold any kind of bank account but there are some tips to be aware of:

• Remember that our pricing includes lower administration fees for “Streamlined” funds that use particular investments because they provide great data feeds and make our job easier. Learn more about our SMSF Administration service for Trustees.

• If your SMSF will be investing via an investment platform, these sometimes come with bank accounts already – it’s worth checking this before setting up another one,

• If your SMSF will be receiving employer contributions, the bank account needs to be what’s known as “New Payments Platform” (or NPP) enabled. The easiest way to check is whether the account can make and receive a payment via Osko, PayID or PayTo, and

• Check you can arrange direct debit payments from your SMSF’s bank account. This is how you’ll pay your Heffron fees and we can also facilitate tax payments for you if your account can support direct debits.

The last two points are sometimes a problem for bank accounts attached to an investment platform – it’s worth checking first before you assume you won’t need an external account.

Finally, once your SMSF bank account has been opened, it’s natural to want to start making deposits into it. But before you do, it’s worth bearing in mind:

• A transfer from your personal account (or your business account etc) into the SMSF’s bank account will likely be considered a contribution to super. That means it will count towards your contribution caps.

• If your SMSF has any assets by 30 June (even a tiny balance in the bank account), it will need to prepare financial statements, have them audited and lodge an annual return with the ATO. 

• If your SMSF has no assets by 30 June you can lodge an RNN (Return Not Necessary)
  
  

How to rollover your existing super  

If you have super already and want to transfer it to your new SMSF you can:  

• Request the rollover via myGov, or

• Request the rollover directly with your other super fund. 

But there’s one really important thing to understand about rollovers. If you make the request via myGov, you’ll only have the option to transfer all of your super in that fund to your SMSF. The old super fund will automatically close your account and you’ll lose your insurance. If you only want to transfer some of the super in your old fund into the SMSF, you’ll need to contact the old fund directly.

For more information, download our Guide 'Transferring existing super into your SMSF'.

Important: 

• A full rollover will close your existing super account and cancel any insurance you may hold in that fund.

• Balances shown in myGov may not be up to date, but the full balance at the time of the request will be transferred.

• If you intend to claim a tax deduction for personal contributions, you must lodge the deduction notice with your current fund before transferring. Your fund cannot process this claim once your super has been rolled over. 
  
  

How to redirect employer contributions to your SMSF  

If you want your employer to contribute directly to your SMSF, you’ll need to provide them with: 

• The Superannuation Standard Choice Form – this form tells your employer where to pay your super contributions and gives them all the information they need about your SMSF.

• A document confirming your fund is regulated by the ATO. You can print a copy of your fund's status by searching your fund’s ABN or name on  Super Fund Lookup.  

You will also need to provide your employer with the 'Electronic Service Address' (ESA) for your Fund. If you're a Heffron client, the ESA for your SMSF will be: 

Start contributing to your SMSF

There are different types of contributions, rules about who can make each type and when, and limits on how much can be contributed each financial year. These change regularly so make sure you know the rules that apply to you each year.