A fund isn’t legally established until it has assets.

This formal holding of assets allows trustees to officially register the SMSF and open a bank account.

You can then build on these assets by having members make contributions to the fund – usually by transferring money or assets.

When setting up your SMSF, a small nominal amount (such as $10) can be held with the trust deed to legally establish the fund. This is useful if a rollover, transfer or contribution is expected from a member in the near future but not yet confirmed. The nominal amount is regarded as a contribution and must be allocated to a member.