Question 1

What is a Self-Managed Super Fund (SMSF)?

Accepted Answer

An SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)is a private superannuation fund you manage yourself, either alone or with up to five other members. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)are also members, making all investment decisions and ensuring compliance with Australian superannuation laws, including the Superannuation Industry (Supervision) Act 1993 (SIS Act) and ATO regulations.

Question 2

Who can be a trustee of an SMSF?

Accepted Answer

All members of an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)must be trustees,(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf) or directors of a corporate trustee. Trustees must be over 18, not disqualified (e.g., due to bankruptcy or criminal convictions), and must accept legal responsibility for compliance with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and superannuation law.

Question 3

Is it difficult to set up an SMSF in Australia?

Accepted Answer

Setting up an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)involves preparing a compliant trust deed, appointing trustees,(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf) registering for an ABN and TFN, opening a separate bank account, and establishing an investment strategy.(https://www.smsfintelligence.com.au/post/compliant-smsf-investment-strategy) Professional advice from SMSF accountants or administrators is highly recommended to ensure full regulatory compliance.

Question 4

Can I have an SMSF if I already have an industry super fund?

Accepted Answer

Yes. You can maintain an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)alongside an industry or retail fund. However, each fund has separate fees, insurance, and compliance obligations. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)must ensure contributions and rollovers comply with caps and that records are accurate for ATO reporting purposes.

Question 5

How long does it take to set up an SMSF?

Accepted Answer

Typically, establishing an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)takes a few weeks or perhaps a few months.  Time is needed to prepare the trust deed, register the fund with the ATO, open a separate bank account, and arrange rollovers or contributions. Using a professional adviser can streamline the process and reduce errors.

Question 6

Do I need an accountant to run my SMSF?

Accepted Answer

You are not legally required to use an accountant, but professional guidance ensures compliance with tax, reporting, and investment laws. Accountants or SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)specialists can assist with audits, annual returns, and legal obligations to minimise risk of penalties or fund disqualification.

Question 7

How many members can an SMSF have?

Accepted Answer

An SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)can have one to six members, all of whom must also be trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)(or directors of a corporate trustee). Each member shares equal legal responsibility for compliance with the Superannuation Industry (Supervision) Act 1993 (SIS Act), superannuation law, and fund rules in the trust deed.

Question 8

What is a corporate trustee and why use one?

Accepted Answer

A corporate trustee (https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs)is a company acting as the trustee (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)instead of individuals. It provides greater flexibility for membership changes, clearer legal separation of personal and fund assets, and potential protection from personal liability. It must comply with ASIC registration and corporate law.

Question 9

What is an SMSF trust deed?

Accepted Answer

The trust deed is a legal document establishing your SMSF,(https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia) defining trustee (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)powers, member benefits, investment rules, and administrative procedures. All fund actions, payments, and decisions must comply with both the deed and superannuation law to maintain the fund’s compliant status.

Question 10

Do I need a separate bank account for my SMSF?

Accepted Answer

Yes. A separate bank account ensures all SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)money is distinct from personal finances, supporting compliance with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and ATO rules. It is required for all contributions, investment income, expenses, and audits, and protects the fund’s assets.

Question 11

What is the minimum number of members an SMSF must have?

Accepted Answer

An SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)must have at least one member if it is a single-member fund, or up to six members for multi-member funds. In both cases, all members (https://www.smsfintelligence.com.au/post/how-many-members-can-i-have-in-an-smsf)must be trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)or directors of the corporate trustee, unless disqualified.

Question 12

Can an SMSF have only one trustee?

Accepted Answer

A single-member SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)cannot operate with only one individual trustee. If an SMSF has one member and individual trustees,(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf) there must be two trustees. Alternatively, a corporate trustee (https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs)structure can operate with a sole director.

Question 13

What is the difference between an individual trustee and a corporate trustee?

Accepted Answer

An individual trustee (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)structure requires each member to be a trustee in their personal capacity. A corporate trustee uses a company as trustee, with members as directors. A difference i(https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs)s that corporate trustees generally provide more flexibility, continuity, and clearer asset ownership.

Question 14

Can children be members of an SMSF?

Accepted Answer

Yes, but only if they are at least 18 years old or, if under 18, they must have a parent or legal guardian act as trustee (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)on their behalf. Members must not be disqualified persons under the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Question 15

Can a company be a member of an SMSF?

Accepted Answer

No. Only individuals can be members of an SMSF. However, a company can act as a corporate trustee (https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs)of the SMSF, with its directors being the members of the fund.

Question 16

Can I set up an SMSF if I have no super balance yet?

Accepted Answer

Yes, technically you can register an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)with the ATO even with no superannuation balance. However, funds must be contributed or rolled over soon after setup, and small balances may not justify ongoing fees or compliance costs.

Question 17

Who is disqualified from being an SMSF trustee?

Accepted Answer

People disqualified include those who have been convicted of dishonesty offences, insolvent under administration, disqualified by the ATO or APRA, or previously involved with a non-compliant super fund. Trustees m(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)ust sign a declaration confirming eligibility.

Question 18

Can non-residents be members of an SMSF?

Accepted Answer

Non-residents (https://www.smsfintelligence.com.au/post/smsf-residency-rules-that-trustees-must-know)can technically remain members, but if central management and control shifts overseas or the active member test fails, the fund may lose its complying status. Professional advice is essential for SMSFs (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)with overseas members.

Question 19

Do all trustees need to sign the trust deed?

Accepted Answer

Yes. The trust deed must be signed and dated by all trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)at establishment, and any later changes must also be formally executed. This document governs fund operations and must always remain up to date with legislation.

Question 20

What is the role of the trust deed in SMSF setup?

Accepted Answer

The trust deed is the legal foundation of the SMSF.(https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia) It sets out trustee (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)powers, membership rules, contribution and benefit arrangements, and dispute resolution. Trustees must ensure all actions comply with both the deed and superannuation law.

Question 21

How do I register an SMSF with the ATO?

Accepted Answer

Once the trust deed is executed and trustees appointed, the SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)must apply for an Australian Business Number (ABN), Tax File Number (TFN), and elect to be a regulated fund with the ATO. This registration enables concessional tax treatment.

Question 22

Do I need an accountant to set up an SMSF?

Accepted Answer

It is possible to establish an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)without professional help, but most trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)engage an accountant or SMSF specialist. This ensures the deed, registrations, and compliance requirements are correctly set up to avoid costly mistakes or penalties.

Question 23

Can I set up an SMSF online?

Accepted Answer

Yes, many administrators and accountants offer online SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)establishment services, including trust deed execution and ATO registration. However, trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)remain legally responsible, so it is critical to understand obligations, even if setup is streamlined through an online provider.

Question 24

What is the difference between an SMSF and a retail super fund?

Accepted Answer

A retail super fund is managed by a professional trustee company for many members, while an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)is self-managed by up to six members. SMSFs offer more (https://www.smsfintelligence.com.au/post/benefits-of-smsf-vs-retail-super-funds-understanding-the-advantages-of-a-self-managed-super-fund)control but come with higher compliance responsibility and personal legal liability.

Question 25

Can family members pool their super in one SMSF?

Accepted Answer

Yes. SMSFs allow up to six (https://www.smsfintelligence.com.au/post/how-many-members-can-i-have-in-an-smsf)family members to pool their super into one fund. This can reduce costs and allow joint investments, but all members share trustee (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)duties and risks equally, regardless of balance size.

Question 26

Can spouses be in the same SMSF?

Accepted Answer

Yes. Spouses commonly operate SMSFs (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)together, pooling their balances for greater investment options. Both must act as trustees or directors,(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf) sharing legal responsibility for compliance, regardless of which spouse contributes more financially to the fund.

Question 27

Can SMSF members have different balances?

Accepted Answer

Yes. Member balances may differ depending on contributions and investment allocations. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)must ensure accurate record-keeping and segregation of accounts within the SMSF,(https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia) as each member’s benefits must be reported separately to the ATO.

Question 28

What is the role of an SMSF trustee?

Accepted Answer

Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)are legally responsible for managing the fund in accordance with super laws, the trust deed, and the sole purpose test.(https://www.smsfintelligence.com.au/post/sole-purpose-test-in-smsfs-explained-what-trustees-need-to-know) Duties include record-keeping, investment decisions, arranging audits, lodging returns, and ensuring retirement benefits are paid correctly.

Question 29

Can I pay myself a fee as an SMSF trustee?

Accepted Answer

Generally, trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)cannot be paid for carrying out their trustee duties. However, if a trustee provides services to the SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)fund in a professional capacity (e.g., as an accountant or lawyer) and charges arm’s length fees, payment may be permitted.

Question 30

Do SMSFs have to follow the Corporations Act?

Accepted Answer

Yes, in part. If the SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)has a corporate trustee,(https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs) the company must comply with the Corporations Act 2001, including director duties. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)must also follow the Superannuation Industry (Supervision) Act 1993 (SIS Act) and ATO regulations.

Question 31

Do I need an auditor before registering my SMSF?

Accepted Answer

No. An auditor is not required at registration, but every SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)must appoint an approved SMSF auditor annually (https://www.smsfintelligence.com.au/post/smsf-annual-compliance)before the annual return is lodged. This ensures compliance is independently verified and reported to the ATO.

Question 32

Can I be a trustee if I don’t live in Australia?

Accepted Answer

Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)can live overseas, but if the central management and control of the SMSF is not ordinarily in Australia, the fund may become non-compliant. The active member test m(https://www.smsfintelligence.com.au/post/smsf-residency-rules-that-trustees-must-know)ay also fail if no contributions are made.

Question 33

What is a trustee declaration?

Accepted Answer

All new trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)(or directors) must sign the ATO Trustee Declaration within 21 days of appointment, confirming they understand their responsibilities under super law. Failure to complete and retain this declaration can result in ATO penalties.

Question 34

Can I change from an individual trustee to a corporate trustee later?

Accepted Answer

Yes. Many SMSFs(https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia) begin with individual trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)and later switch to a corporate trustee structure.(https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs) This requires changes to the trust deed, asset ownership records, ASIC company registration, and notification to the ATO.

Question 35

What records must be kept when setting up an SMSF?

Accepted Answer

Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)must keep copies of the trust deed, trustee consents, signed declarations, minutes of meetings, registrations, and bank account records. Many documents must be retained for 5 to 10 years to satisfy audit and ATO requirements.

Question 36

Can SMSFs have more than one trustee structure?

Accepted Answer

Yes, an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)can operate under either an individual trustee or a corporate trustee (https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs)structure, but not both at the same time. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)may change structures later by updating the trust deed, asset titles, ASIC registration, and ATO records.

Question 37

What is the cost to set up an SMSF?

Accepted Answer

Setup costs vary with complexity, perhaps ranging from $1,000 to $5,000, covering the trust deed, company registration (if a corporate trustee)(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf), ATO registrations, and professional advice. Ongoing annual costs must also be considered to ensure the fund remains cost-effective.

Question 38

Can I register my SMSF without an ABN?

Accepted Answer

No. An SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)must have both a Tax File Number (TFN) and an Australian Business Number (ABN) to be regulated by the ATO and receive concessional (https://www.smsfintelligence.com.au/post/what-are-concessional-contributions-in-smsfs)tax treatment. Registration must be completed before contributions or rollovers can be accepted.

Question 39

Can I choose the name of my SMSF?

Accepted Answer

Yes. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)can choose a unique fund name when establishing the SMSF.(https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia) The name must be clearly stated in the trust deed and on all bank accounts and investment records to demonstrate legal ownership by the fund.

Question 40

Can I set up an SMSF without other members?

Accepted Answer

Yes, a single-member SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)is permitted. For individual trustee (https://www.smsfintelligence.com.au/post/corporate-trustee-vs-individual-trustee-in-smsfs)structures, there must be two trustees (the member and another individual). Alternatively, a corporate trustee structure allows one director who is also the sole member of the fund.

Question 41

Do SMSFs need to be registered with ASIC?

Accepted Answer

Only if the SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)has a corporate trustee,(https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf) as the company must be registered with ASIC and pay annual review fees. SMSFs with individual trustees do not register directly with ASIC, but still register with the ATO.

Question 42

Can SMSF trustees live in different states?

Accepted Answer

Yes. Trustees (https://www.smsfintelligence.com.au/post/who-and-what-is-a-trustee-in-an-smsf)and members can reside in different states or territories in Australia. Location does not affect compliance, provided the central management and control (https://www.smsfintelligence.com.au/post/smsf-residency-rules-that-trustees-must-know)of the fund remains in Australia and all decisions are properly documented.

Question 43

Can SMSFs use an overseas bank account?

Accepted Answer

No. An SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)must use an Australian bank account to accept contributions, receive rollovers, pay expenses, and manage investments. Using an overseas account would breach compliance (https://www.smsfintelligence.com.au/post/smsf-annual-compliance)rules and may risk the fund’s regulated status.

Question 44

Do SMSFs need to be registered with APRA?

Accepted Answer

No. SMSFs (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)are regulated solely by the Australian Taxation Office (ATO). APRA (https://www.apra.gov.au/)regulates large industry and retail super funds with more than six members. SMSFs fall outside APRA’s jurisdiction unless they become non-complying funds.

Question 45

Can SMSFs operate without a trust deed?

Accepted Answer

No. A trust deed is a legal requirement for all SMSFs.(https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia) It establishes the rules of the fund and its existence. Without a valid deed, the fund cannot be considered an SMSF under the SIS Act.

Question 46

Do all members need to contribute money when the SMSF is set up?

Accepted Answer

Not necessarily. Some members may roll over existing balances while others may make new contributions. However, all members must have an account balance once the fund is operating, and records must accurately reflect each member’s entitlements.

Question 47

Can I establish an SMSF without rolling over my super?

Accepted Answer

Yes, you can establish the SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)first and then arrange contributions or rollovers later. However, without money inside the fund, it cannot make investments or pay expenses.(https://www.smsfintelligence.com.au/post/understanding-smsf-expenses) A rollover or contribution is usually required soon after setup.

Question 48

What happens if an SMSF is not registered correctly?

Accepted Answer

If an SMSF (https://www.smsfintelligence.com.au/post/what-is-an-smsf-understanding-self-managed-super-funds-in-australia)fails to register with the ATO as regulated, it will not receive concessional (https://www.smsfintelligence.com.au/post/what-are-concessional-contributions-in-smsfs)tax treatment and may face penalties. Contributions cannot be accepted until the fund is fully registered and compliant.

Question 49

Can I change SMSF members after setup?

Accepted Answer

Yes. Adding or removing members requires updating the trust deed, notifying the ATO within 28 days, updating bank accounts, asset records, and possibly ASIC if a corporate trustee is involved. Legal documentation must be properly prepared and retained.

Question 50

What documents are required to establish an SMSF?

Accepted Answer

Key documents include the trust deed, trustee declarations, consents to act, proof of identity for trustees and members, ATO registration forms, and if applicable, ASIC incorporation documents for a corporate trustee. All must be retained for compliance purposes.

Question 51

Can I establish more than one SMSF?

Question 52

How do I know if an SMSF is right for me?

Question 53

Can I run an SMSF with friends instead of family?

Question 54

What is the first step in setting up an SMSF?

Question 55

Can SMSF trustees be removed?

Question 56

What happens if an SMSF has no members?

Question 57

Can an SMSF exist without a corporate trustee?

Question 58

Can SMSFs be set up as partnerships?

Question 59

What is the role of the ATO when I set up an SMSF?

Frequently Asked Questions