An SMSF (self-managed super fund) can be both a beneficial and cumbersome path to go down. If you don’t know what you’re doing then you could end up doing more work than you need to, so it’s best to make sure you’re on top of the ins and outs of an SMSF in Eaglemont. An SMSF is essentially – like the name suggests – a super fund that you manage yourself. That is, you’re the trustee of the fund, in comparison to other super funds. Today we’ll be having a look at some of the key terms you’ll need to know in relation to an Eaglemont SMSF and how they can be useful.
1. The trustee
Unlike standard industry super funds – where the company is responsible for handling your accounts – an SMSF is handled by either an individual trustee or corporate trustee. An individual trustee must have a minimum of two members and a maximum of four, in which all members must be trustees.
Whereas a corporate trustee is where a company is established to act as the legal trustee of the fund and can have anywhere from a single member to four. All company directors must be members of the fund and vice versa. The members cannot be members of a different fund however – unless they’re related. Corporate trustees do incur ASIC fees to set up whereas individual trustees do not and are also cheaper to maintain in the long run.
SuperStream is the industry standard method used for sending super fund information. It is used by businesses to pay employees. A standard format is used so all appropriate databases (ATO, super fund, employer records etc) have access to it. This means that even if you have multiple super funds, only a single transaction is necessary. Each transaction is identifiable through a unique reference code
3. Electronic service address
For SuperStream data to come through, you’re going to need an electronic service address for your SMSF in Eaglemont. This is a necessity for your SMSF. It is essentially a digital profile for your SMSF that acts as the URL or IP address of a messaging provider. You can acquire an electronic service address through your tax agent, SMSF messaging provider/administrator, bank or accountant at little to no cost.
When it comes to SMSF’s there are minimum requirements that must be met when it comes to contributions. Some of the things you should consider when accepting contributions are:
- The type of contribution. A mandated employer contribution would be an example of one that you could accept.
- Do you have the member’s TFN?
- Their age. Non-mandated contributions from members that are over 75-years of age cannot be accepted.
- Assets usually cannot be accepted from a member – though there are sometimes exceptions to this rule.
Whilst members are not required by law to provide their TFN to your fund, not doing so can result in a myriad of problems such as having to pay extra tax on their account and not being able to accept contributions on their behalf.
Mandated employer contributions are contributions that are required by law to be made by the employer, whereas non-mandated contributions are extra contributions that are not legally required to be made. These can be contributions from anyone, not just the employer, such as contributions made by the trustee into their own fund.
A rollover is when super is transferred between funds by a member. This could be the entirety of the funds or just a portion. Whenever a rollover is requested, it will be checked that the person requesting the rollover is a member of your fund. Because of this, you should always keep all personal information up to date to avoid any red flags being raised.
When making a rollover yourself, you must fill out the appropriate forms – either the Rollover benefits statement or Death benefit rollover statement– and give them to the receiving fund along with the payment or at least within seven days of. You must also keep a copy for yourself for a minimum of five years and give a copy to the member within 30 days.
Looking for Eaglemont SMSF advice?
Silverdale Consulting Group are SMSF experts in the Eaglemont area and are ready to help you take your super fund to the next level. With years of combined experience, our fully qualified consultants are well equipped to assist you with setting up an SMSF or assist you with any help or advice you may need along the journey.