SMSF Basics – Self Managed Super Regulation, Structure of a Fund, Sole Purpose

Super Basics -SMSF Basics - Self Managed Super Regulation, Structure of a Fund, Sole Purpose

SMSF Basics – Regulation, Structure, Sole Purpose

Self Managed Super Funds are Regulated by an Act of Parliament, have a defined structure, and are governed by the Sole Purpose Test.

An SMSF is created under the “SIS” Act full name is – Superannuation Industry (Supervision) Act 1993 (or “SISA”) and can be in two main forms

  • Multiple member SMSF

–      2- 4 members

  • Single member SMSF – 2 possibilities

–      2 trustees (you and one other non employee)

–      Or have a Corporate trustee with you as sole director

NO member can be an employee of another (unless family)

NO Trustee can be paid for services

An important part of the law is to recognize and abide by the “Sole Purpose Test” – that an SMSF is established  to pay Retirement Benefits – the purpose of this is to ensure the super assets/money are preserved and protected for retirement, and in the meantime both managed and invested wisely.

This means there are some restrictions on investments in related party assets, assets that can be acquired from related parties, and restrictions on personal use of fund assets.

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Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
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