Setting up an SMSF: Key Steps, Trustee Structures & Compliance essentials

BY INVITED INDUSTRY EXPERT RICK S.  | SMSF Accountant & Taxation Specialist

Setting up a Self-Managed Super Fund (SMSF) involves several stages — from initial decision-making to implementation and ongoing maintenance. The process requires careful planning, professional advice, and a clear understanding of legal, tax, and SMSF compliance obligations.

A. Decision-Making Phase

Before setting up an SMSF, it is essential to assess your readiness and purpose.

1. Self-Assessment Questions

Ask yourself these questions:

a. Why do I want to establish an SMSF?

b. Who will be the main person responsible for managing the fund as a trustee?

c. Who will be the members, and is our relationship likely to remain stable over time?

d. Do I have a clear investment strategy and long-term goals aligned with SMSF rules?

These reflections help determine whether the SMSF structure is not only appealing but suitable and sustainable.

2. Consult with Professionals

SMSFs don’t have to be complicated when you have guidance from qualified advisors. In the decision phase, you’ll typically speak with:

• Accountant – to explain regulatory responsibilities of SMSF trustees, help decide on the fund structure (individual or corporate trustee), and outline tax and compliance obligations.

• Financial Planner – to design an investment plan with clear short-term and long-term strategies aligned with your goals and risk tolerance.

• Lawyer – to draft or review the trust deed, ensure it reflects your requirements, and prepare related legal documents such as binding death benefit nominations or estate clauses linked to your SMSF.

  
  

Depending on your future investment intentions, you may also consult:

• Property professionals — if considering real estate in your SMSF

• An SMSF lending specialist — to assess borrowing capacity before you start the setup.

  
  

B. Action Phase

Once the decision is made, the SMSF setup process begins:

Establish the Fund

Your accountant or solicitor will prepare the trust deed, which must be signed by all members and trustees (or directors of the corporate trustee). The accountant will also apply for an ABN and TFN to officially register your fund with the ATO.

Open a Bank Account

The SMSF needs its own dedicated bank account. During the bank’s verification (KYC) process, you’ll usually need to provide:· Identification for all members or directors· The signed and executed trust deed· An ASIC extract (if a corporate trustee is used)· The ATO confirmation of ABN and TFN registration.

Transfer Existing Super (Rollover)

You’ll need to request a rollover from your existing super fund to your new SMSF. This is done by completing your previous fund’s transfer form. The existing fund will contact your accountant or solicitor for the electronic transfer code of the new SMSF.

Start Investing

Once funds are received, you can begin investing according to your approved investment strategy.

Property Investment (Optional)

If you intend to invest in property using borrowings, you must set up a bare trust under a Limited Recourse Borrowing Arrangement (LRBA). This structure legally separates the investment property and its related loan from the rest of the SMSF assets, protecting other retirement funds from potential losses if the property value declines. Although the property and loan are held in another entity’s name, they remain part of the SMSF for tax purposes.

C. Ongoing Maintenance Phase

Running an SMSF comes with ongoing responsibilities:

Maintain Compliance

Ensure all SMSF activities comply with ATO regulations and that no superannuation money is accessed or transferred unlawfully.

Annual Audit and Tax Lodgement

Each year, your accountant will prepare the fund’s financial statements and arrange an independent audit before lodging the annual return with the ATO.

Regular Review

Review your SMSF investment strategy regularly with your financial planner to ensure it continues to meet your goals and remains compliant with superannuation laws.

Comments

Setting up an SMSF means meeting rules, structure and responsibilities but with the right accounting, legal and financial experts supporting you, the journey becomes straightforward and managed.

In fact, setting up the SMSF is often the easy part. What matters most is taking the time upfront to understand the bigger picture: why you want an SMSF, how you plan to invest, and whether the strategy genuinely aligns with your circumstances and long-term goals.

When your strategy, structure and support team are aligned, an SMSF becomes more than a super fund — it becomes a powerful vehicle to take control of your wealth, invest with intention, and turn long-term goals into tangible outcomes.

To explore how our team can assist you, please contact SMSF Intelligence for an introduction.

ABOUT THE AUTHOR:

Rick S. serves as the Principal of a leading Sydney-based accounting and SMSF advisory practice. Rick brings more than 15 years of public practice experience supporting multinational organisations, high-net-worth individuals and family enterprises. Ready to connect with the right expert?

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DISCLAIMER:  The views and opinions expressed in this article are those of the guest expert and do not necessarily reflect the views of the SMSF Intelligence team, its owners, or its representatives and partners. No guarantee is given as to the accuracy, completeness, or timeliness of the content, and we do not accept any liability for loss or damage arising from reliance on the information contained in this article or any linked materials. This article is published for general information and educational purposes only and should not be considered financial, legal, tax, or investment advice. It has been prepared without taking into account your personal objectives, financial situation, or needs. Before making any decisions based on this content, you should consider its appropriateness in light of your circumstances and seek advice from a qualified professional. We do not provide financial, taxation, or legal advice. Hashtags: #SMSF #SMSFSetup #SelfManagedSuperFund #SMSFCompliance