When you set up an SMSF, you become a trustee of the fund (or a director of a company that is a trustee). In either case, you will be responsible for managing it according to its trust deed and the laws and rules that apply to SMSFs.
Note that investments made in a superannuation fund are governed by complex rules and regulations. For instance, you need to manage your fund’s investments in the best interests of fund members and in accordance with the law, which means the SMSF’s investments must be separate from the personal and business affairs of fund members, including your own.
As a trustee, you will also have a number of administrative obligations – for example, you will need to arrange an annual audit of your fund, keep appropriate records and report to us on the fund’s operation.
SMSFs are not for everyone and you should think carefully before deciding to set one up. It is a major financial decision and you need to have the time and skills to manage it correctly. There may be better options for your super savings, which will depend on your personal situation and financial goals. If you are interested in finding out whether a SMSF could help you reach your financial and retirement goals sooner, please contact us for an obligation-free chat.