There are a number of steps to set up an SMSF.

Choose an SMSF trustee structure

You must understand the requirements for your SMSF depending on the trustee structure you choose. Your structure needs to suit all members’ circumstances.

Appoint trustees

You must understand and comply with your responsibilities when appointing trustees to avoid penalties for you personally and for your fund.

Create a trust deed

Prepare a trust deed outlining the rules and conditions under which your SMSF will operate.

Check your SMSF is an Australian super fund

To be a complying super fund and receive tax concessions, your SMSF needs to be an Australian super fund at all times during the financial year.

Hold assets

You need to understand how to assign assets during the set-up phase as your fund needs to hold initial assets to give legal effect to the trust. You must understand the requirement for the legal ownership of assets to be in the fund’s name.

Register your SMSF

You must register your fund on the Australian Business Register to be an ATO-regulated SMSF.  

Set up your SMSF bank account

You need to set up a unique bank account for your fund that will keep all money and assets separate from any personal or business finances.

Get an electronic service address

You need an electronic service address (ESA) to process rollovers and receive employer super contributions.

Create an investment strategy

Before you start making investments, you must have an investment strategy to achieve your fund’s objectives. To create and manage the investment strategy you must understand the investment requirements.

Plan for the future

It’s important to protect fund members and their future from the unexpected. You should consider insurance for your members, and putting death benefit nominations in place.

Prepare an exit plan

Having a plan for when to wind up your SMSF will make it easier for you later, especially if the unexpected occurs.