Super funds

Super funds 2018-06-14T01:27:41+00:00

Frequently asked questions and useful information

You can find answers to some of the most frequently asked questions about registering a company, forming a trust, setting up a super fund, placing an order with us and more below. If you can't find an answer to your question, contact us. We'll be happy to help.

What are the SIS act conditions for a self-managed super fund (SMSF)? 2018-06-04T10:13:59+00:00

Firstly, the SIS Act is short for Superannuation Industry (Supervision) Act 1993. It is the legislation that governs superannuation in Australia.

For a superannuation fund to qualify as ’self-managed’, the following conditions must be met:

1.    The fund must have less than 5 members.

2.    Each individual trustee must also be a member of the fund.

3.    Each director of a corporate trustee must also be a member of the fund.

4.    Each member of the fund must be either:

  • a trustee of the fund, OR
  • a director of the body corporate, if the trustee of the fund is a body corporate.

5.    No member of the fund is an employee of another member of the fund, unless they are related.

6.    No trustee can receive any remuneration from the fund or from any person for any duties or services as trustee.

There are some exceptions to 2 and 3 above regarding sole member funds.

A superannuation fund with only one member is a self-managed super fund if and only if:

1.    If the trustee is a body corporate:

  • the member is the only director of the body corporate, OR
  • the member is 1 of only 2 directors of the body corporate, and both directors are related to each other, OR
  • the member is 1 of only 2 directors of the body corporate, and the member is not an employee of the other director.

AND

2.    If the trustees of the fund are individuals:

  • the member is 1 of only 2 trustees, of whom one is the member and the other is a relative of the member, OR
  • the member is 1 of only 2 trustees, and the member is not an employee of the other trustee.

AND

3.    No trustee of the fund receives any payment from the fund or from any person for any duties/services performed by the trustee in relation to the fund.

All above information has been sourced from the Superannuation Industry (Supervision) Act 1993 Sect 17A – Definition of self managed superannuation fund.

What are the advantages of a self-managed super fund? 2018-06-04T10:21:25+00:00

Some of the advantages people see in running their own super fund are:

  • they can have greater investment freedom
  • they feel their money is safer being invested by them as trustees
  • they can actively participate in the management of the fund
  • there are reduced formal reporting requirements; and
  • they may have more flexible retirement planning and estate planning options available. 
Can a member be less than 18 years old? 2018-06-04T10:28:49+00:00

Yes, a member can be under 18 in a fund with individual trustees.
If the underage member does not have a nominated legal personal representative, a parent or guardian must act as trustee of the fund on their behalf.

Can members of a fund be non-Australian residents? 2018-06-04T10:26:00+00:00

Yes, however there may be severe tax consequences if all fund members reside overseas for an extended period.
We recommend seeking professional advice prior to establishing the fund if this will be your situation.

Can I have a corporate trustee and a member that is not yet 18? 2018-06-04T10:30:08+00:00

No. The SIS Act requires that all directors of a corporate trustee be members in the fund.
Since a person under 18 cannot be a director in an Australian company, they therefore cannot be a member of a fund with a corporate trustee.

Does my SMSF have to pay Stamp Duty? 2018-06-14T01:55:34+00:00

Stamp duty on superannuation fund deeds is only required in Northern Territory and Tasmania. This table illustrates all stamp duty details.

In Tasmania, the stamping of deeds carries a duty fee of $20 for the original deed, with no extra fee for counterpart deeds (extra copies).

In the Northern Territory, the duty fee is the same as Tasmania ($20) however a further charge of $5 per counterpart is charged.

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