What is a Self Managed Super Fund?
A Self Managed Super Fund is a superannuation vehicle which provides you with direct control of your retirement savings.
Did you know that the Self Managed Super Fund sector, is now the largest sector within the Australian superannuation industry? This is due to the fact that there is an increasing number of people wanting to have control of their fund – makes sense.
Controlling your own fund isn’t for everyone though. Therefore, it’s important to understand the basics surrounding it before you make your decision.
Members & Trustees – Who can they be?
An SMSF can have no more than four members at any one time and are generally, though not always, members of the same family.
A member cannot be an employee of another member, unless they are related.
In essence, an SMSF is like a trust and like any trust, is run by trustees.
There are two types of SMSF trustee structures:
- Individual trustee – The trustees work in their individual capacity
- Corporate trustee – A company is appointed as the trustee
In both cases, as a general rule, the members run the fund and all members are either trustees or directors themselves.
Did you know that trustees cannot be paid for carrying out their trustee duties? This is important to note.
Who can’t act as a Trustee?
In addition, some people can’t act as an individual trustee or a director of a corporate trustee of a super fund.
Someone who:
- has been convicted of an offence involving dishonest conduct
- has been subject to a civil penalty under the superannuation legislation
- is insolvent or under administration (an undischarged bankrupt)
- who has been disqualified from acting as a trustee of a superannuation fund by the ATO