SMSF Registration
An SMSF must be established as a trust, which involves creating a trust deed and appointing trustees.
Step 2: Obtaining a Trust ABN and TFN.
Once the SMSF is established, you need to apply for an Australian Business Number (ABN) and a Tax File Number (TFN) for the trust. These are essential for the fund's tax obligations and for identifying the SMSF in all dealings with the Australian Taxation Office (ATO).
Step 3: Opening a Bank Account.
An SMSF must have a bank account in its name to manage its operations, including accepting contributions and paying expenses. This account should be separate from the personal accounts of the trustees.
Step 4: Registering with the ATO.
You must register the SMSF with the ATO within 60 days of establishing the trust. This process involves completing an online application through the ATO's Business Portal. The application requires details about the fund, trustees, and members, fund's intended structure and investment strategy.
Step 5: Developing an Investment Strategy.
An SMSF must have a written investment strategy that outlines how the fund will achieve its investment objectives. This strategy should consider factors such as risk, return, diversification, and liquidity. The trustees are responsible for regularly reviewing and updating the investment strategy to ensure it remains appropriate for the fund's circumstances.
Step 6: Appointing an Approved Auditor
The SMSF must appoint an approved auditor to audit annually the fund's financial statements and ensure compliance with superannuation laws and the auditor must be registered with the Australian Securities and Investments Commission (ASIC).
Step 7: Ensuring Compliance.
Trustees of an SMSF are required to comply with various regulatory obligations, including:
Annual return to be file with ATO, which includes information about the fund's income, expenses, and investments.
