SMSF Basics – How does an SMSF compare to other super funds and are there different types?

How does an SMSF compare to other super funds and are there different types?

How does an SMSF compare to other super funds and are there different types?

The difference between a self managed superannuation fund and other types of superannuation funds is that members are also trustees, or directors of a corporate trustee. This means they control the investments of the fund, the payment of their benefits and are ultimately responsible for the ongoing compliance of the fund.

There are two main different types of SMSFs, based on structure, that is, whether there will be a corporate (special super company) or individual trustees. Another difference is the number of trustees, single member or multiple, up to four trustees/members.

Corporate Trustee:

  • Four or less members
  • Each member also a director of the company who is the trustee itself
  • No member an employee of another member unless related
  • Corporate trustee, nor any director is paid for services related to the fund

Individual Trustee:

  • Four or less members
  • Each member is a trustee
  • No member an employee of another member unless related
  • No trustee is paid for services related to the fund

Single Member Funds come in Two Forms:

  • With corporate trustee, member must be sole director of the corporate trustee, or one of two directors either related or not an employee of each other
  • Two individual trustees, one a member and the other either related or any other person who does not employ them

See ATO: Setting up a self-managed super fund – or NAT 71923 Pg 6-7

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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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