Before you establish a new DIY Superannuation also called Self-managed super fund(SMSF), you absolutely need to make sure that you understand what you’re taking on. It is important that you need to be aware of the roles and responsibilities of being a DIY Super trustee, and you need to be sure that you are suited to running a SMSF.
You should carefully consider your financial objectives to ensure that a DIY option will help you achieve your goals. Having enough super in your current superfund should also be considered to ensure that DIY is a cost effective option for you. A common figure from ASIC is $200,000, however lower amounts can be considered if combining balances.
Key considerations for DIY Superannuation trustees?
Investment Strategy
- Trustees must have a written investment strategy for their fund and consider the following;
- Circumstances of the fund
- Establish the investment objectives
- Consider risk associated with the investments
- Establish asset allocation
- Consider the funds liquidity requirements to pay benefits
- The trustees are required to invest in accordance with their strategy and review this on a regular basis.
Administrative obligations & SMSF (DIY Super)reporting requirements
- Trustees must sign a trustee declaration
- Keep records for 10 years
- Keep funds investments separate from personal investments
- Prepare and keep accurate accounting and administrative records
- Lodge the fund income tax and regulatory return to ATO
- Appoint an auditor – fund must be audited by an approved auditor.
At SuperHelp, we assist trustees with majority of fund administrative obligations and reporting requirements to ensure all legislative requirements are met.
For all of your enquiries, please contact SuperHelp on 1300 736 453.