SMSF FAQS

What is the advantage of having a corporate trustee instead of individual trustees in a superannuation fund?
With individual trustees, the sole purpose of the fund must be to provide old age pensions. With a Corporate Trustee the fund has the flexibility of lump sum or pension payments.

What is a SMSF or Self Managed Superannuation Fund?
This the terminology use to describe an personal Australian retirement fund which is regulated by the Australian Taxation Office (ATO). It is a retirement saving vehicle where the control of the investments decisions are made by the members of the fund.

What is a member?
Members are the people who contribute money to the fund for investment purposes and upon retirement, the member receives the financial benefits from the fund. In most cases (except for single member funds) the members are also the trustees of the fund.

Are there different types of SMSF's available?
There are only two types of funds. Single member funds and multiple member funds. It's pretty obvious, that single member funds only have one member, while the multiple member funds can have up to 4 members.

Single Member Funds - why are they different?
Like multiple member funds, the sole member must also be the trustee. However, there is a requirement for an additional trustee (either individual or company). Trustees of the fund do not receive benefits from the fund and in the case of an individual becoming the second trustee, it will usually be a family member.

If there is a company as the additional trustee, the member of the fund must be the sole director of that company or be related to another director of the trustee company. Under no circumstances can the other person be an employee of the director/member.

If you any other questions about SMSF's please contact our office on 1300 722 796 or by email.