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SMSF FAQ

What is SMSF?

What is superannuation?

Superannuation, also called ‘super’, is the money set aside for your retirement.By the law, your employer must pay 9% of your salary into a super fund. This is called the Superannuation Guarantee. You also can make your own contributions to your super fund.

What is a self-managed superannuation fund?

A self-managed superannuation fund (SMSF), also known as DIY Super, is a trust established for 1-4 members to operate as a super fund. Members are normally family-related and they are also the trustees (or the directors of the trustee company) who are responsible for all aspects of running the fund.

How much is needed to set up a SMSF?

There is no minimum required to set up a self-managed super fund. ASIC and ATO suggest a minimum of $200,000 to set up a SMSF based on $1,700 running costs per year.iCare Super’s fixed low SMSF fees make the costs of running a self-managed super fund less significant and make the option economical for many.

What are the key benefits of having a SMSF?

Control and flexibility: you control your super money and make the decisions as to how your funds are invested and how the fund is to operate.Investment choice: compared with commercial super funds, your SMSF can invest in a large range of investments including cash, shares, bonds and property etc.Tax savings: the income including employer contributions are only taxed at 15% in your SMSF. Capital gains are only to be taxed at 10%. The investment income will be 100% tax free once your SMSF is in pension phase.Low cost: the costs of running your own SMSF may be much lower than retail or industry super funds. iCare super only charge $888 for the full annual administration services. If you have four members in your SMSF, each member only pays $222 on average. This is a huge cost saving!Assets protection: the assets of your SMSF are well protected even you declare bankruptcy! The reasonable amount of money you take out from your SMSF is also protected from legal claims.

Who can set up a SMSF?

Almost anyone can set up a SMSF. Check ATO’s publication “is self managed super right for you” to see some key questions to be asked before you set up a SMSF.

What steps are involved in setting up a SMSF?

The standard process for setting up a SMSFas below:

  1. Order trust deed and establish documents for your SMSF.
  2. Application for Tax file Number, Australian Business Number and Registration with the ATO as a complying SMSF
  3. Set up the bank accounts for your DIY super fund
  4. Set up life insurance / TPD/ salary continuance policies in the new DIY Super Fund name (if applicable)
  5. Advise contributing employers of the details of your new Super Fund
  6. Rollover existing superannuation benefits from retail or industry funds to your SMSF

How do I name my SMSF?

You can call your SMSF any name you like. It is quite common that members use their names to call their SMSF something like “Smith Super Fund” or “Smith Family Fund”.

Who can be a trustee of a SMSF?

The trustee can be either an individual or a trustee company. The member in your SMSF must be a trustee.

Can I set up a one member SMSF?

Yes, you can. You have two options.1. You can appoint a second trustee provided you are one of the trustees and both of you are not in an employment relationship (unless you are relatives).2. You set up a company as trustee and you are the sole director of the company.

How many members can be included in a SMSF?

Up to four. The member must be a trustee.

Can employer contributions be paid to my SMSF?

Yes. After you set up your own SMSF, you can advise you employer to transfer your super contributions into your won SMSF.

Does iCare Super help find our lost super?

Yes, we do. This is one of our standard procedures once you become our clients. We will notify you if we find any lost super and advise you how to get them back. Alternatively, you can find it by yourself by using SuperSeeker.

Can I transfer any assets or make contributions other than cash to my SMSF?

Yes, you can transfer your listed shares, trust units even commercial properties to your SMSF. Contact iCare Super to seek professional advices before you transfer any assets other than cash to your SMSF.

What investments can my SMSF invest in?

Your SMSF can invest a broad range of investments including cash, term deposits, listed shares, listed unit truts, managed investments, private unit trusts, direct property, artwork and other collectables. It is important to understand that there are certain regulatory limitations placed on SMSF.

Is my SMSF money safe with iCare Super?

Yes absolutely. We don’t handle your money in your SMSF. iCare Super only takes care of the administration, taxation and compliance work for your SMSF. You control your own money and you make your own decision on how and where to invest. All your bank account and investments are in the name of your SMSF.
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