SMSF – Product Disclosure Statement
Why do I need a Product Disclosure Statement for my Self-managed Super fund?
It is for the protection of the SMSF trustees as individuals
Originally when the legislation passed to require a Product Disclosure Statement for a SMSF many lawyers couldn’t understand their value.
However, now it would be a brave lawyer who says you don’t need one.
This is because the SMSF PDS protects the Trustees as individuals. The SMSF PDS also protects the financial adviser, accountant, auditor, lawyer and other professionals that help you look after the SMSF.
What do I get when I build this SMSF PDS?
Because you are building your SMSF Product Disclosure Statement directly at a law firm’s website you:
-
- 1. retain Legal Professional Privilege
- 2. benefit from our law firm’s Professional Indemnity Insurance
- 3. receive legal advice
Upon building the SMSF PDS, you receive as a PDF:
-
- Updated SMSF Product Disclosure Statement (compliant for both accumulation and pension phases)
- Minutes for the SMSF Trustee to accept the SMSF Product Disclosure Statement
- Letter on our law firm’s letterhead confirming the above. Signed by a partner of the law firm.
There is a tax requirement to keep your SMSF compliant. The Australian federal government provides generous tax concessions that come from operating a ‘compliant’ self-managed superannuation fund (SMSF). However, it must be compliant. To be compliant:
- Your SMSF fund must only ever have a maximum of 4 members at one time. You can have 1, 2, 3 or 4 members.
- Each SMSF member must be a trustee. Each SMSF trustee must be a member. (Unless you have an SMSF company as trustee or unless there are minors as SMSF members.)
- Instead of having all the SMSF members, as trustees, you can have an SMSF company. This is called an SMSF corporate trustee. Each SMSF member is a director of the SMSF company. Only SMSF members are the directors of the Special Purpose Company.
- You cannot have someone you employ as an SMSF member with you. This is unless that employee is ‘related’ to you.
- The SMSF trustee is a volunteer – an SMSF trustee can never draw a salary or fees for performing the job of SMSF trustee.
- All SMSF members and SMSF trustees should be Australian residents, otherwise you face complexity.
Click here for all the documents you can build online at our law firm.
Adj Professor, Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
Legal Consolidated Barristers and Solicitors
National: 1800 14 1 612
Mobile: 0477 796 959
Email: [email protected]
Why do I need a Product Disclosure Statement for my Self-managed Super fund?
It is for the protection of the trustees as individuals
Originally when the legislation passed to require a Product Disclosure Statement for a SMSF many lawyers couldn’t understand their value.
However, now it would be a brave lawyer who says you don’t need one.
This is because the PDS protects the Trustees as individuals. The PDS also protects the financial adviser, accountant, auditor, lawyer and other professionals that help you look after the SMSF.
What do I get when I build this document?
Because you are building your document directly at a law firm’s website you:
- Retain Legal Professional Privilege
- Benefit from our law firm’s Professional Indemnity Insurance
- Receive legal advice
Upon building this document, you receive as a PDF:
- Updated Product Disclosure Statement (compliant for both accumulation and pension phases)
- Minutes for the Trustee to accept the Product Disclosure Statement
- Letter on our law firm’s letterhead confirming the above. Signed by a partner of the law firm.
There is a tax requirement to keep your SMSF compliant
The Australian federal government provides generous tax concessions that come from operating a ‘compliant’ self-managed superannuation fund (SMSF). However, it must be compliant. To be compliant:
- Your fund must only ever have a maximum of 4 members at one time. You can have 1, 2, 3 or 4 members.
- Each member must be a trustee. Each trustee must be a member. (Unless you have a company as trustee or unless there are minors as members.)
- 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 cannot have someone you employ as a member with you. This is unless that employee is related to you.
- The trustee is a volunteer – a trustee can never draw a salary or fees for performing the job of trustee.
- All members and trustees should be Australian residents, otherwise you face complexity.
Click here for all the documents you can build online at our law firm.
Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD Legal Consolidated Barristers and Solicitors Toll free: 1800 14 16 12 Mobile: 04777-96959 Email: [email protected] Skype: brettkennethdavies