Build your Self-Managed Super Fund deed


Self Managed Super Fund deed – fully updated for the Budget

Our Self Managed Super Fund deed complies with the 15 main changes to SMSF Deeds. This is under the Budget:

1.  Internally ‘rollback’ pensions to accumulation

2.  Segregate assets between accumulation and pension phases

3.  Reject contributions

4.  Refund contributions;

5.  Deal with excess transfer balance tax and excess non-concessional contributions

6.  Allow income streams and Account Based Pension (grandfathered)

7.  Specify guardians for incapacity and death

8.  Identify the Power of Attorney when living overseas for more than 2 years

9.  Resettle pensions with flexible timing without mingling with accumulation account

10.  Allow reversionary beneficiary nominations

11.  Provide for CGT relief

12.  Deal with segregated and unsegregated assets

13.  Cease or keep Transition to Retirement Income Streams

Self Managed Super Fund

SMSF Deed Updated for the 2017 Budget

14.  Calculate member balances, across different funds

15.  Calculate internal pension rollbacks to accumulation

These are all required to give maximum flexibility to your accountant and adviser.

What is a Self Managed Super Fund deed?

A Self Managed Super Fund Deed holds your retirement money. This is called superannuation. The SMSF gives you greater control.

The Australian government provides generous tax concessions from operating a ‘compliant’ self-managed superannuation fund. You comply if:

  • your fund has a maximum of 4 members. You can have 1, 2, 3 or 4 members.
  • each member is a trustee. Each trustee is a member.
  • Instead of having all the members, as trustees, you can have a company. This is called a corporate trustee. Each member must be a director of the company. Only members can be directors.
  • You can not have someone you employ as a member with you. This is unless they are related to you.
  • The trustee is a volunteer. You can’t take fees for performing the job of trustee.
  • All members and trustees should be Australian residents, otherwise, you face complexity.

Complies with new TRIS rules

The treatment of transition to retirement income streams and limited recourse borrowing arrangements passed on 15 June 2017: Treasury Laws Amendment (Fair & Sustainable Superannuation) Bill 2016. The 2016 Budget affects those with a TRIS or about to enter into an LRBA.

The 2016 Budget affect all TRISs from 1 July 2017. This is because the TRIS is no longer able to benefit from the exempt current pension income status. This is on the earnings supporting a TRIS.
If a pension started as a TRIS, the ECPI exemption never applies. This is even where the pensioner subsequently satisfied a condition of release with no cashing restrictions.

Our Self Managed Super Fund deed fully complies with the new rules.

Self Managed Super Fund complies with the latest Auditing Standards

Self-Managed Super Funds are audited every financial year. The auditor relies on Auditing and Assurance Standards Board’s (AUASB) Standards.

The new Standard identifies, clarifies and summarises the existing responsibilities which approved self-managed superannuation fund (SMSF) auditors use when conducting SMSF audit engagements. It also provides guidance to the auditor on matters which the auditor considers when planning, conducting and reporting on the financial and compliance engagement of an SMSF audit.

The 106-page standard is called the Guidance Statement GS 009 Auditing Self-Managed Superannuation Funds (GS 009).

The appendices to GS 009 includes an example engagement and representation letter, illustrative trust deed checklists and financial audit procedures, and illustrative examples of threats to the auditor’s independence.

Legal Consolidated’s Self-Managed Superannuation Deed is updated to fully comply with the Standard. Because you are building your SMSF at our website you also receive a signed letter on our law firm’s letterhead to confirm compliance with the Standard.

How do I register a Self-Managed Superannuation Fund?

Firstly, build the SMSF Deed on our website, print out and the trustee signs. Secondly, within 60 days register the SMSF with the ATO. You do this by merely applying for an Australian business number (ABN). Our covering letter, that comes with the SMSF Deed, gives you the link to the ATO website. It is free to get an ABN from the ATO. You also apply for a Tax File Number (TFN) from the ATO (as well).

Does my SMSF need an ABN

Currently, about half of the Self-Managed Super Fund deeds built on our website are for pension phase. These funds may have just passive investments. And there may only be investments via platforms. Nevertheless, all Australian compliant SMSF Deeds must have an ABN, at all times.

My company is a trustee of my SMSF. Does my company also need an ABN and TFN?

Most SMSF have a company as the trustee. If your company is only doing that one job – acting as trustee of the SMSF – then the company has neither an ABN or TFN. The trust needs the ABN and TFN, not the corporate trustee.

To update your SMSF Deed see here.

Because we are a law firm, you retain Legal Professional Privilege, the law firm’s PI insurance and receive legal advice.Self Managed Super Fund

Telephone us as you build the SMSF. We can help you answer the questions.

Adjunct Professor, Dr Brett Davies, CTA, AIAMA, BJuris, LLB, LLM, MBA, SJD
Legal Consolidated Barristers and Solicitors
National taxation and superannuation law firm
Mobile: 0477 796 959
National: 1800 141 612
Skype: brettkennethdavies