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Setup FAQ

The  SMSF setup questions frequently asked by our clients have been listed as below, please feel free to contact us if you have any other questions.

What conditions do you need to meet to set up a SMSF?

  1. It has less than 5 members;
  2. For an individual trustee structure SMSF, each individual trustee is a member unless it is a sole member;
  3. For a corporate trustee structure SMSF, each director of a corporate trustee is a member;
  4. No member is  an employee of another member of the fund – unless they are relatives;
  5. No trustee can be remunerated for their services as a trustee.

Can a fund member not a permanent resident or citizen?

Yes. Temporary visas holders, such as students, 457 visa workers, all can set up a SMSF as long as they are tax residents of Australia.

Can a fund member be a non-tax resident?

Yes, however it may lose the complying status if all members are non-tax resident.

Who applies TFN and ABN for a SMSF and how long does it ?

If you set up a SMSF with iCare Super, we will apply TFN and ABN for your fund.

How long does it take to obtain SMSF’s TFN and ABN?

It can take 4 hours if all your personal or business taxation matters are up to date with ATO. Otherwise it may take 4 weeks or be rejected by ATO.

Does ATO select SMSFs to review the setup process after lodging TFN/ABN application?

Yes. If ATO believe the trustees of the SMSF has other outstanding matters with ATO, such as overdue personal or business returns, normally ATO will select the fund for an audit or review. If SMSF trustees can not pass the audit or review, ATO may cancel the TFN/ABN or make it status “withheld” that the members will not be able to roll over from other funds or get their employer contributions paid to their SMSF bank account.

Can a child be a member?

Yes, a child who is under 18 can be a member but he/she can not be the trustee of the fund. The child’s parents or legal personal representatives need to also the trustee of fund.

What are the rules for a single member SMSF?

  1. If it is a corporate trustees SMSF:
    1. the member is the sole director; or
    2. the member is the one of only two directors who are relatives; or
    3. the member is one of only two directors and he/she is not an employee of  the other director
  2. If it is an individual trustee structure SMSF, the member is:
    1. one of only two individual trustees who are relatives (can employ each other); or
    2. one of only two individual trustees, and he/she is not an employee of the other trustee.

Does iCare Super have a setup team or outsource the setup work?

Yes, we have a dedicated SMSF setup team. More that 99% funds set up by us can be up and running in a few hours. We do not outsource and your setup questions will be answered promptly.

 

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