There are many issues to consider when determining whether to set up an SMSF with individuals or a corporate trustee. We generally recommend corporate trustees.
Under the superannuation legislation, there are restrictions on who can be the trustees of SMSFs.
| Sole member fund | Two to six member funds | |
|---|---|---|
| Individual trustees | The member must be one of the trustees. The member must not be an 'employee' of the other trustee unless they are related. |
Each individual trustee must be a member of the fund. No member of the fund can be an 'employee' of another member of the fund unless they are related. |
| Corporate trustees | The member must be: (a) the sole director; or (b) one of two directors and the member must not be an 'employee' of the other director unless they are related. |
Each director of the corporate trustee must be a member of the fund. No member of the fund can be an 'employee' of another member of the fund unless they are related. |
There are exceptions to these rules that apply in limited situations (such as when members lose capacity, when a member dies or when members are under 18 years old).
The requirements in relation to stamping a deed establishing a SMSF vary from state to state. The only jurisdiction in Australia that requires stamping is the Northern Territory ($20 nominal duty plus $5 for each copy of the SMSF trust deed). None of the other jurisdictions require new SMSF trust deeds to be stamped.
Setting up a self-managed superannuation fund (SMSF) is a significant step in taking control of retirement savings. CGW Structures makes the process straightforward and compliant, providing all the essential documents and support you need to establish and manage your SMSF effectively.
Our SMSF deeds are drafted to include all the latest amendments to the Superannuation Industry (Supervision) (SIS) legislation, ensuring your fund remains compliant with current laws and regulations. We understand the importance of flexibility in SMSF management, which is why our deeds include features that many others omit, such as reversionary pension clauses and provisions for ongoing binding death benefit nominations. These tools give trustees and members greater control over how benefits are managed and distributed, both now and in the future.
In addition to the trust deed, our SMSF establishment package includes a Product Disclosure Statement (PDS) specifically designed for your fund. This ensures you meet your disclosure obligations and provides clear, relevant information to members about the operation and features of the SMSF.
CGW Structures also supplies all the supporting documents you need, including trustee declarations, minutes, application forms and registers. Our templates are regularly reviewed and updated to reflect legislative changes and best practice, so you can be assured your SMSF is set up on a solid foundation.
While CGW Structures does not provide legal advice, you can gain access to accredited superannuation lawyers at our allied law firm, Cooper Grace Ward, for more complex matters and tailored advice.
For efficient, compliant and flexible SMSF establishment services, contact the CGW Structures team today.
