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Australian residents have many options in terms
of how they hold their superannuation assets.
For example, they can use a public offer commercial
fund, a corporate fund, an industry fund or a
government fund if they are eligible to contribute.
However they can also run their own super fund.
This option is known as a self-managed superannuation
fund (SMSF) or Do-it-yourself (DIY) fund.
SMSFs have the same role as
any other super funds; the main difference is
that the members of the fund are also the trustees.
They control the investment of their contributions
and the payment of their benefits.
For your fund to be an SMSF
it needs to meet several requirements under the
super laws.
The requirements are different
depending on whether your fund has one of the
following:
- a corporate trustee;
- individual trustees; or
- a single member.
If your fund has individual
trustees, it's an SMSF if all of the following
apply:
- it has four or less members;
- each member is a trustee;
- no member is an employee
of another member, unless they're related;
- no trustee is paid for
their duties or services as a trustee.
If your fund has a corporate
trustee, it's an SMSF if all of the following
apply:
- it has four or less members;
- each member of the fund
is a director of the company;
- each director of the corporate
trustee is a member of the fund;
- no member is an employee
of another member, unless they're related;
- the corporate trustee is
not paid for its services as a trustee; and
- no director of the corporate
trustee is paid for their duties or services
as director in relation to the fund.
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