What’s involved with an SMSF?

Before you decide to establish your own Self Managed Super Fund, make sure you truly understand what is involved. The Australian Tax Office shares a series of great videos that help you better understand how Self Managed Super Funds work. Below we share with you their video titled “What’s involved with an SMSF?” and a transcript below

Transcript of ATO video

‘SMSF – What’s involved with an SMSF’ VIDEO TRANSCRIPT

What is involved with an SMSF

So you’re thinking about starting your own self managed super fund. That’s great – but are you aware of what’s really involved?

Let’s take a quick look at a typical self managed super fund.
When you first set up you need to
• Decide on fund members and trustees;
• Establish the trust and trust deed;
• Set up a bank account,
• Register with the ATO,
• create your Investment strategy,
• and include a plan for when your SMSF ends

There’s more to consider once set up including
• Rolling over of existing super;
• Organising employer contributions;
• Accepting contributions within limits
• Making investments without breaking rules;
• Regularly reviewing the investment strategy; and
• Documenting and maintaining records for up to 10 years.

Then, each year you need to
• Value assets;
• Prepare accounts & financial statements,
• Appoint a registered Self Managed Super Fund auditor;
• Lodge the annual return,
• Pay the Self Managed Super Fund levy; and
• Any tax that’s due.

When you start making payments, you need to
• Decide if any assets need to be sold;
• Ensure minimum payments are met each year;
and you may also need to
• Appoint an actuary;
• Withhold tax; and
• Give payment summaries to members as well as the ATO.

Finally, when the fund is finished you need to
• Get a final audit; and
• lodge your final return;
plus you’ll also need to
• Pay any outstanding tax; and
• Payout or rollover all of the assets.

As you can see, there is a lot involved. Before you decide to start a self managed super fund you need to consider whether you can manage everything or whether you are prepared to pay Self Managed Super Fund professionals to help. But remember, even if you have professionals help, SMSF trustees are ultimately responsible for their fund.

You may want to seek some professional advice to help you decide if a self managed super fund is right for you

For more SMSF information take a look at our other videos – or visit the ATO website at

The Independent Financial Advisor

About The Independent Financial Advisor

My name is Tim Mackay and I am The Independent Financial Advisor. I advise pre-retirees and retirees on how to manage their family's wealth and to fund their dream retirement.

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