Table of contents. What is a Self Managed Superannuation Fund (SMSF)? p.4. How does an SMSF work? p.4

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2 Is an SMSF for you? How do they work? What s the process? What are your obligations? If you ve got questions about starting an SMSF, we ve got the straightforward answers. Make an informed decision when it comes to setting up your own Self Managed Super Fund and take advantage of your Rogerson Kenny SMSF Starter Kit. A Self Managed Superannuation Fund (SMSF) is a structure that is designed to hold and grow your retirement or death benefit savings. The decision to move into your own super fund needs to be carefully considered and it is recommended that before making this decision that advice be sought from appropriately qualified professionals. The SMSF Professionals Association of Australia (SPAA) is the peak industry body for SMSF professionals. I d encourage you to only use professionals who have been accredited as an SMSF Specialist Advisor TM (SSA TM ). For more information, please visit A SMSF is governed by the Superannuation Industry (Supervision) Act 1993 (SIS Act) and is regulated by the Australian Taxation Office (ATO). SMSFs are the largest and fastest growing sector in the $1.4 trillion superannuation industry. At the present time, there are approx. 450,000 SMSFs with almost 1 million members. The total current value of SMSF assets is $439 billion. This SMSF Starter Kit should enable you to understand what a SMSF is, what the requirements are to keep the SMSF operating, the costs to set one up, along with a few tips and hints. Rogerson Kenny SMSF accountants are an independent accounting firm. We can assist you with the set up, yearly administration, audit and ongoing income tax requirements together with structure advice, strategy and planning of your SMSF. We work for you and are paid by you. We don t accept commissions or referral fees, so you have peace of mind that our work is for your benefit. I hope you enjoy this SMSF Starter Kit. MARK ROGERSON Director RKS Nominees Pty. Ltd. trading as Rogerson Kenny SMSF Accountants Mark Rogerson is a CPA and a accredited SMSF Specialist Advisor TM (SSA TM ) phone: mark.rogerson@rogersonkenny.com.au Rogerson Kenny SMSF Accountants are SMSF specialist accountants, working for you, our clients. We also specialise in business and tax accounting, so we are a perfect fit for anyone with a stand-alone SMSF or with a business and a SMSF. Operating since the early 1970s we have a solid reputation of providing our clients with good advice and service. We don t accept commissions or incentives from any other entity giving you peace of mind that we are truly independent. 2

3 Table of contents What is a Self Managed Superannuation Fund (SMSF)? p.4 How does an SMSF work? p.4 What are the Advantages and Disadvantages and considerations of having a Self Managed Super Fund? p.6 What is involved in Setting up a SMSF? p.7 Trustee Eligibility p.8 Trustee Obligations p.9 Setting up a Self Managed Super Fund with Rogerson Kenny SMSF Accountants p.10 The Trust Deed p.12 What does the typical structure of an SMSF look like? p.13 What can a SMSF Invest in? Investment Rules / Restrictions p.15 Investment Strategy p.17 Investment Checklist p.17 New Establishment Form p.18 3

4 WHAT IS A SELF MANAGED SUPERANNUATION FUND (SMSF)? A superannuation fund is a SMSF if it meets the following conditions: It has less than 5 members; Each individual trustee of the fund is a member; Each member of the fund is a trustee; No member of the fund is an employee of another member of the fund, unless those members are related; No trustee of the fund receives any remuneration for his or her services as a trustee A SMSF can also have a company as trustee (known as a corporate trustee) if: AT A GLANCE: SMSF ADVANTAGES Increased control over investments Increased capital gains tax discounts Assets generally more protected in Super Fund Imputation Credits can offset tax liability Improved retirement planning A tax rate of 15% on income and contributions (or 0% when in pension mode) Business and residential real estate property may be purchased (conditions apply) Each director of the company is a member of the fund; Each member of the fund is a director of the company; and The fund has less than 5 members, no member is an employee of another fund (unless related) and the trustee does not receive remuneration for their services as a trustee A SMSF is a trust and by trust law, there are certain steps you must follow to set your SMSF up correctly. A trust is an arrangement where a person or company (being the trustee) hold the assets (the trust property) in trust for the benefit of others (being the beneficiaries). A SMSF is a special strain of trust, set up for the sole purpose of providing retirement benefits to its members (who are the beneficiaries). A SMSF has the sole purpose of providing benefits to members in retirement or to their beneficiaries on death. As all members are trustees, members control the entire running of the SMSF, thus where the Self Managed term comes from. You (as the trustee) manage the investments, make decisions, it s the trustee responsibility to ensure compliance with relevant legislation. It is not a set an forget. However, Rogerson Kenny SMSF Accountants can play a major role in assisting you (and do with the majority of our SMSF clients) in the day to day running of the SMSF. HOW DOES AN SMSF WORK? A SMSF is established much the same way as a normal trust. A trust deed is required, trustees are appointed, members apply and are confirmed, ABN, TFN and GST (if necessary) are applied for with the ATO, an investment strategy and death benefit nomination forms are completed, an accountant and auditor are appointed and then the fund is ready to open a bank account. Once the bank account is open, fund s from other super funds (industry / retail) can be rolled in to the new SMSF. This works by completing the rollover form, then once approved, a cheque is sent to the trustees of the SMSF, who bank it and are then free to invest in allowable assets. The SMSFs bank account is the hub of all activity. Rollovers and contributions (personal, employer, etc) come in, pensions and expenses are paid out. Assets are purchased from there and investment earnings are banked. The most common investments in SMSFs are: Listed shares Property (business real property and residential property) Managed Funds Term deposits Cash Unlisted shares or units other investments 4

5 There is an annual requirement to have the SMSF audited and a tax return lodged. The Australian Taxation Office (ATO) is the regulator of SMSFs and pass the responsibility of auditing each SMSF to approved auditors, who will report to the ATO and trustees any breaches of the SIS Act. a visual example of a smsf: MEMBER 1 Member Balance $$ MEMBER 2 Member Balance $$ MEMBER 3 Member Balance $$ MEMBER 4 Member Balance $$ BENEFITS PAYMENTS Pensions ETPs Lump Sum INVESTMENTS Shares Property Managed Funds other CONTRIBUTIONS Members Employers INVESTMENT EARNINGS Dividends Interest Rent Capital Growth ROLLOVERS Industry Retail Other Funds SMSF PAY EXPENSES Tax Professional Fees Filing Fees Other Expenses Contributions and Rollovers are directly added to a members balance Benefit payments are directly taken from a members balance Investment earnings and expenses are allocated on a pro rata basis, based on the percentage of funds a member holds Investments are held in the name of the Trustee(s) for the benefit of the Self Managed Super Fund The bank account is the hub of the Self Managed Super Fund You can run a SMSF with anybody (except and employer / employee, unless they are a relative). Friends, cousins, siblings, etc, can join a SMSF together. Member money is tracked seperately, yet the funds can be pooled together to buy a large asset *PLEASE NOTE: A SMSF can have between 1 and 4 members 5

6 WHAT ARE THE ADVANTAGES AND DISADVANTAGES AND CONSIDERATIONS OF HAVING A SELF MANAGED SUPER FUND? Advantages: Greater Investment Choice you can basically invest in any asset (provided certain acquisition and related party rules are met). Disadvantages: Trustee Responsibility even if you enlist the help of professionals, ultimately you are responsible for everything that happens Full Control the buck stops with you, you make the decisions Expertise and time required you need to keep records, keep up to speed with regulations and generally have a finger on the pulse Typically cheaper Fees (if you have more than $300,000 in super). This should not be your main reason for establishing a SMSF though Fees if you have less than $300,000, a SMSF may be cost prohibitive Tax Planning great tax efficiency, for instance if you are in pension mode, you actually receive franking credits back! Estate Planning you will not be able to achieve anywhere near the level of detail and flexibility with your super in any other super product (industry / retail fund) MANY AUSTRALIANS ARE SEEING THE BENEFITS. According to the latest ATO figures, approximately new funds are set up in Australia every year (that s around 3000 a month). SOURCE: Self-managed super fund statistical report June 2012 DID YOU KNOW? SMSF s are a particularly good tax-planning tool when acquiring business real estate property - many business owners use SMSFs to assist them in the purchase of their own business premises. a few questions to ask yourself if a smsf is right for you: Do you have a good knowledge of investments and the time and skill to implement this? Do you need flexibility with investments and the ability to take control of your whole portfolio? Are you ok with the extra responsibility? Have you compared the costs and benefits with running your own super fund with other options? Are you a high net worth individual or do you own your own business? Will the benefits outweigh the costs? These are some questions you need to ask yourself. It is best to seek professional advice before you make any decisions. 6

7 WHAT IS INVOLVED IN SETTING UP A SMSF? Firstly you need to enlist the help of a professional. I d be sceptical of anyone offering to set up a fund for free or offering to set one up so you can then buy a property or some other asset off them. When I say professional I mean an independent professional an accountant or financial planner who is a SMSF Specialist Advisor TM. elect to set up a smsf a) Usually $300,000 + desirable (but by no means essential and in fact, there are many reasons to establish a SMSF with a low balance) b) You need to understand the responsibility you are taking on c) You will need some investment knowledge you can have a single member fund This is quite common decide on the appropriate smsf structure a) Either individual trustees or corporate trustees (you may need advice on this) obtain a trust deed a) Don t get the cheapest one! b) Make sure you understand it c) Appoint the trustees registrations a) Request an TFN, ABN and GST if appropriate b) Trustee Company will have to be registered with ASIC (if you elect to have one) membership a) Obtain applications and confirm membership appoint professionals a) Accountant b) Auditor c) Financial Planner (if appropriate) bank account a) Open the bank account for the SMSF (this is the hub of the SMSF) roll money in* a) Apply to have money rolled in from industry / retail super funds. You will need to wait for the TFN and ABN to be issued and for the ATO to have record of your membership. The fund will also need to appear on the site *A QUICK NOTE: When considering rolling money out of an industry or retail (or any other) super fund, you need to consider the insurance you hold. Often it is an automatic life insurance cover which may be forfeited when your funds are rolled out. Please seek professional advice regarding this. 7

8 TRUSTEE ELIGIBILITY In most cases all members of a SMSF must be a trustee or a director of the trustee company. Anyone 18 years and over and not under a legal disability (ie. Mental impairment or bankruptcy) can be a trustee unless they are a disqualified person. A PERSON IS DISQUALIFIED IF ANY OF THE FOLLOWING APPLY: A PERSON HAS BEEN CONVICTED OF AN OFFENCE INVOLVING DISHONESTY A PERSON HAS BEEN SUBJECT TO A CIVIL PENALTY ORDER UNDER THE SUPER LAWS A PERSON IS CONSIDERED INSOLVENT UNDER ADMINISTRATION A PERSON IN A UNDISCHARGED BANKRUPT HAS BEEN DISQUALIFIED BY A REGULATOR A COMPANY CAN'T BE TRUSTEE OF THE SELF MANAGED SUPER FUND IF ANY OF THE FOLLOWING APPLY: AN OFFICER OF THE COMPANY IS A DISQUALIFIED PERSON ACTION HAS COMMENCED TO WIND UP THE COMPANY A RECEIVER OR LIQUIDATOR HAS BEEN APPOINTED TO THE COMPANY Members under the age of 18 are under a legal disability and cannot be trustees of a super fund. A parent or guardian of a minor who does not have a legal personal representative can act as a trustee on the minor s behalf. having a resident fund Your SMSF must be a resident regulated super fund at all times during the income year to receive tax concessions and to maintain the funds complying status. There are certain conditions the SMSF must meet to be an Australian Superannuation Fund, otherwise the fund may be taxed at non complying rates (46.5% of all assets and 46.5% of earnings for the year). 8

9 TRUSTEE OBLIGATIONS SMSF Trustees (or directors of the trustee company) have the ultimate responsibility of the actions of the fund. At all times a trustee must act honestly, prudently and in the best interests of the SMSF members (which in most cases are the same people). Civil and Criminal penalties can be imposed under superannuation laws for breaches of relevant legislation, the funds governing rules (trust deed) and of course the terms indicated above. When running a SMSF, trustees must meet the following requirements: sign a trustee declaration in the approved ato form keep the ownership of fund assets separate from personal and other entity assets *please see note at the end of this section adhere to the trust deed of the smsf (all deeds are different and you need to understand your trust deed) meet the sole purpose test. The Sole Purpose Test has core an ancillary purposes, but in the main, the core purpose of the SMSF is to provide benefits for the retirement of members or to their dependants on death formulate and maintain an investment strategy do not breach any superannuation laws do not lend money to related parties, relatives or members meet lodgement and payment obligations keep money in the smsf Until a condition of release has been met (do not access it early) be careful when acquiring assets off a member or related party seek professional advice do not exceed contribution limits. Excess contributions tax may apply keep in house assets under 5% of the value of the fund *OWNERSHIP OF FUND ASSETS: One of your responsibilities as a trustee is to ensure the assets of the fund are protected and held separately from your own funds and assets. The assets need to be clearly shown as owned by the SMSF. This is to protect the SMSFs assets in the event of a creditor dispute or action and to prevent costly legal action to prove who owns them. It is therefore a good idea to use a trustee company instead of individual trustees for this reason. It is just as important that the trustee company isn t a trading company or a trustee for another trust for this ownership reason as well. 9

10 SETTING UP A SELF MANAGED SUPER FUND WITH ROGERSON KENNY SMSF ACCOUNTANTS for a fee of $1,800 + gst what do you receive? At Rogerson Kenny SMSF Accountants we provide all of the below documents for execution by the directors of the trustee company and the members of the SMSF. We handle all of your registrations and will assist with your Rollovers and the establishment of the SMSF Bank Account. This includes meetings, phone calls and s. We hold your hand every step of the way. Our clients enjoy the benefit of being able to pick up the phone and speak to an experienced person the same person who they always deal with, who knows them, their family and their circumstances. 1. a smsf strategist trust deed (in triplicate) This provides the governing rules to operate your own SMSF. It has explanatory notes throughout, making it easy for the trustees and members to understand. 2. a product disclosure statement Explaining to the members the features, benefits and associated risks with the SMSF 3. ato publication entitled super what you need to know Providing an excellent guide to trustees on what can and cannot be done in a SMSF. 4. trustee declaration 5. provide a copy of the ato s Request to transfer the whole balance of superannuation benefits between funds form. This form allows for the rollover of an entire superannuation benefit to another superannuation fund. 6. provide a copy of the ato s Choosing a Super Fund form which allows a member and a members employer to execute and have super contributions paid into the super fund of your choice. 7. establishment minutes, notices and application forms: a) Trustee minutes to appoint trustees, execute the trust deed and attend to other matters to make the fund operational b) Consent for Company to act as trustee of the fund c) Appointment of director of the trustee company d) Applications for membership e) Notice of appointment as trustee and acceptance as fund members f ) Trustee Notification to Member Choice of Superannuation Fund g) Notification to Contributing employer for a contributing employer to be registered by the fund. h) Application to rollover benefits i) Investment Strategy j) Along with many other documents that may be handy in the future including: contributions; investments; estate planning; benefits and reserves. 10

11 8. incorporate a trustee company, strategist sole purpose smsf trustee company 9. certificate of registration of a company 10. the constitution of the strategist sole purpose smsf trustee company (in triplicate) 11. application for an abn, tfn and gst (if necessary) with the ato 12. registrations with asic 13. appoint rogerson kenny smsf accountants as tax agents 14. appoint an approved auditor 11

12 THE TRUST DEED The Trust Deed is the book of rules for the super fund. It sets out what can and can t be done (keeping in line with the Superannuation Industry (Supervision) Act 1993 (SIS Act)). The trust deed can be more onerous and restrictive that the SIS Act, but not less. A trust deed should be easy to read and understand and should set out some of the basics being: a product disclosure statement purpose of the fund appointing the trustee becoming a regulated super fund trustee operations, obligations and powers members application form, who may be a member, termination of a member, accounts estate planning death benefit nomination forms etc contributions how they can be made and acceptance pensions and benefits how and when benefits can be paid and to who investments investment strategy, how assets can be invested, authorised investments earnings how calculated and allocated it should also mention... reserves, insurance, insolvency, compliance, changes to the fund, winding up the fund PREPARING AN INVESTMENT STRATEGY Before the fund starts to make investments, the trustees are required to prepare an investment strategy. An investment strategy can be for the fund as a whole, or for each member (depending on the risk tolerances of fund members). An investment strategy is a document that sets out how you plan to achieve the fund s or member s investment objectives. There is no prescribed format for an investment strategy (unless your trust deed says so), but it must reflect the purpose and circumstances of the fund and its members. An investment strategy is a fluid document that should be updated whenever circumstances in the fund change. The investment strategy should consider such things as diversification of assets, liquidity of the fund s assets, insurance, the ability of the fund to meet the needs of members (ie. Ability to pay a pension). 12

13 WHAT DOES THE TYPICAL STRUCTURE OF AN SMSF LOOK LIKE? The most common structure is to have individuals as trustees of the SMSF. The superior structure is to have a company as trustee. The SMSF is really like a trust, whereby you need a trustee to make the decisions for the best interests of the members (keeping in mind relevant legislation)! individual trustee structure: TRUSTEE: T. Smith AS TRUSTEES FOR TRUSTEE: J. Jones SMSF EXAMPLE SUPERANNUATION FUND Member: T. Smith Member: J.Jones The Super Fund lodges a tax return, has a TFN & ABN, prepares financials etc This is the operating entity, with the bank account etc Monies come in by way of contribution investment income and out by way of expenses, benefits paid and capital loses A SMSF is required to have a trustee. This SMSF trustee can be two or more individual persons (maximum of 4) or a company (known as a corporate trustee). A SMSF can have up to 4 members and as little as 1 member. If individual trustees are opted for, if there is more than 1 member then all members will be trustees. However, in a single member fund a second trustee is required, who does not have to be a member of the fund (so you need to find someone you trust, who will be a joint trustee of your SMSF and know all your business).if a corporate trustee is used, all members are directors and a single member fund can have just the one director. It is widely accepted by professionals and the ATO that a corporate trustee is superior. We highly recommend this structure (vs individual trustees) and here are some of the reasons why: Continuous Succession - the corporate entity cannot die, thus has an indefinite life span. Greater Administrative Efficiency Greater flexibility to pay lump sums or pensions Greater estate planning flexibility Greater asset protection Sole member SMSFs just need the one director, where if individual trustees are used, you need to find someone else - you must have two individual trustees. 13

14 corporate trustee structure: EXAMPLE SUPERANNUATION FUND Director: T. Smith Director: J.Jones Trustee Company does not have a bank account, nor does it lodge a tax return or have any activity. It is purely the trustee of the Self Managed Super Fund, making decisions on it s behalf. Assets are purchased in the name of the company, as trustee for the Self Managed Super Fund. AS TRUSTEE FOR SMSF EXAMPLE SUPERANNUATION FUND Member: T. Smith Member: J.Jones The Super Fund lodges a tax return, has a TFN & ABN, prepares financials etc This is the operating entity, with the bank account etc Monies come in by way of contribution investment income and out by way of expenses, benefits paid and capital loses We regularly see SMSFs with individual trustees (who we have acquired as clients after they have been established) in the form of a husband and wife, who have all the assets in both their names as trustees for the SMSF. This is perfectly correct, as it is a two member fund with two individual trustees (husband and wife), however there are some shortcomings. As is required, all assets must be held in the name of the trustee(s) in trust for the SMSF. Often, the husband pre deceases the wife. When this happens in an individual trustee structure, the wife must find someone else to be a trustee with her (as a single member fund with an individual trustee structure, must have a minimum of two trustees) and all the investments need to be changed to reflect the new trustee (and remove the husband) and thus ownership of assets. Can you imagine the administrative task and the fees attached with accountants or solicitors writing to every investments share registry to request this change or changing the title of a property? From experience, the pain we see people go through to get this up to speed, would be eased considerably, if a corporate trustee was in place to begin with. Simply, the husband would be removed as director. No assets need to be changed, as they are purchased in the name of the company (instead of individual names) and thus everything can continue on as a single member fund with the same member the sole director of the trustee company of the SMSF. 14

15 WHAT CAN A SMSF INVEST IN? SMSF members can invest in a way that is often unavailable in most other super funds. You can hold direct property, listed and unlisted shares, artwork and other exotic or not-so-common investments. The Sole Purpose (or core purpose) of your SMSF must be to provide retirement benefits to the members of the fund on retirement or benefits to a deceased members dependants or estate. Any investment made or general decision made in the fund that doesn t pass this broad Sole Purpose Test will breach the SIS Act and may result in the SMSF being non compliant. A Sole Purpose Test breach is a fairly broad brush and isn t applied often, but it sets the framework for a trustees mindset when investing and carrying out operations in the SMSF. INVESTMENT RULES / RESTRICTIONS Investment rules for SMSFs are in place and regulated by the ATO to limit the risks that SMSF fund members are exposed to, to maintain / maximise retirement savings. The rules also aim to ensure that SMSFs make investment decisions with the sole purpose of generating retirement benefits for members (rather than providing current day support, eg. for a failing business). Basically a SMSF can invest in any asset, subject to the below requirements being met, which cover the type of asset, the way or from who, the asset is purchased, how the asset is funded and the impact the asset has on the SMSFs investment strategy. loans or financial help to members or a member s relative You can t lend money or provide direct or indirect financial help from your SMSF, to a member, or a member s relative. borrowings You can borrow money in very limited circumstances: a) borrowing money for a maximum of 90 days to meet benefit payments due to members or to meet and outstanding surcharge liability. The borrowings can t exceed 10% of your fund s total assets b) borrowing money for a maximum of seven days to cover the settlement of security transactions if the borrowing does not exceed 10% of your fund s total assets. You can only borrow to settle security transactions if at the time the transaction was entered into it was likely that the borrowing would not be needed c) Borrowing using a Limited Recourse Borrowing Arrangement click here for more details. This borrowing is commonly used to buy property or shares. acquisition of assets from a related party: You can t acquire assets for your SMSF from a related party of your SMSF. However, like everything, there are exceptions to the rule, where: a) the asset is a listed security (eg. shares or units on an approved stock exchange) and the asset is acquired at market value b) the asset is business real property and acquired at market value c) the asset is an in house asset, but the level of your SMSFs in house assets does not exceed 5% of the total assets of the SMSF, or is an asset specifically excluded from being an in house asset. A related party of your SMSF covers all members of your SMSF and associated, and all standard employer-sponsors of your SMSF and their associates. An associate of a particular member of an SMSF includes the following: a) every other member of your fund b) the relatives of each member c) the business partners of each member d) any spouse or child of those business partners, any company a member (or the members and / or their associates) controls or influences and any trust the member (or the members and / or their associates) controls. 15

16 Associates of a standard employer-sponsors include business partners and companies or trusts the employer controls (either alone or with other associated), or companies and trusts that control the employer. A standard employer-sponsor is an employer who contributes to a super fund for the benefit of a member, under an arrangement between the employer and the trustee of a SMSF. THE FIGURES DON T LIE SMSF trustees control around a third of all superannuation money held by Australians. This is up from 10% just a decade ago. SOURCE: Self-managed super fund statistical report June 2012 Business real property generally relates to land and buildings used wholly and exclusively in a business. If a business real property is used in a primary production business, such as a farm, it can still meet the test of being used wholly and exclusively in a business, if an area of land, no more than two hectares, contains a dwelling that is used for private or domestic purposes. However, the main use of the whole property can t be for domestic or private purposes. in house assets: An in house asset is a loan to, or an investment in a related party of your SMSF, or an investment in a related trust of your SMSF. An asset of your SMSF that is leased to a related party is also an in house asset. In general, as a trustee you are restricted from lending to, investing in or leasing to a related party of your SMSF more than 5% of your SMSFs total assets. There are some exceptions, including business real property that is subject to a lease between your SMSF and a related party of your SMSF. There is a limited exemption for certain investments in related non geared trusts or companies Investments need to be made and maintained at arm s length. Any time your SMSF makes an investment, it needs to be made and maintained on a strict commercial basis. This is referred to as an investment at arm s length. The purchase and sale price of fund assets should always reflect a true market value for the asset. Income from assets held by your fund should always reflect a true market rate of return. investing in business real property: You need to make sure the level of investment in business real property still meets the investment strategy of your SMSF, including diversification of assets, liquidity and maximisation of member returns in your SMSF. 16

17 INVESTMENT STRATEGY You need to prepare and implement an investment strategy for your SMSF and review it regularly. The investment strategy needs to reflect the purpose and circumstances of your SMSF and consider the following: Investing in a way to maximise member returns taking into account the risk associated with the investment Diversification and the benefits of investment across a number of asset classes (eg. shares, property and fixed deposits) in a long term investment strategy The ability of your fund to pay benefits as members retire and pay other costs incurred by your fund The needs of members (eg. age, income level, employment pattern and retirement needs). Insurance of members needs to be considered. MAKE SUPER FAST DECISIONS SMSF members have flexible options- they can instantly change their investments and/ or the asset allocation of their portfolios. The investment strategy should set out your investment objectives and detail the investment methods you ll adopt to achieve these objectives. You need to make sure all investment decisions are made according to the investment strategy of your SMSF. Please seek professional assistance if in doubt. You should view your SMSF investment strategy as a fluid document. INVESTMENT CHECKLIST: Make sure the SMSF complies with the sole purpose test at all times while the SMSF is in existence, including when investing fund assets and paying benefits upon retirement of members. Make sure you develop an investment strategy that you regularly review Ensure your investment strategy takes into account the retirement goals of members Take into consideration the risks involved in certain investments Take into consideration what bills your SMSF has to pay and allow enough cash to meet these expenses (it is also good practice to have at least 2-3 years of cash for the payment of a pension) Consider diversifying your SMSFs investments Have a separate bank account for your SMSF Make sure that your SMSFs ownership of its investments is assured. Make sure the assets are in the correct name of the fund Make investment decisions that will provide for your retirement Don t mix your SMSF money / assets with other money Don t have the SMSF assets in another entities name Don t provide financial assistance to members or relatives members SMSF assets are not for your or a related parties personal use 17

18 NEW SMSF APPLICATION FORM section a - new fund & establishment with corporate trustee Q1. Proposed Name of SMSF Q2. Primary Contact Person Family Name: Given Names: Postal Address Street: Suburb: Postcode: State: Contact Details Work: Home: Fax: Mobile: section b - trustee details Q3. Would you like to use an existing company? (please tick) yes (go to Question 5) no (go to Question 4) Q4. Corporate Trustee New Company Registered Address Proposed Name of Company: Street: Suburb: Postcode: State: go to question 6 Q5. Corporate Trustee Existing Company Company Name: A.C.N: A.B.N: T.F.N: Registered Address Street: Suburb: Postcode: State: 18

19 Q6. Director Details Director 1 Full Name: TFN DOB (dd/mm/yy) Place of Birth: Director 2 (if applicable) Full Name: TFN DOB (dd/mm/yy) Place of Birth: Director 3 (if applicable) Full Name: TFN DOB (dd/mm/yy) Place of Birth: Director 4 (if applicable) Full Name: TFN DOB (dd/mm/yy) Place of Birth: section c - smsf member details Q7. SMSF Member Details Member 1 Mr Mrs Miss Ms Other: Full Name: TFN DOB (dd/mm/yy) gender: male female Occupation: Mobile: Residential Address Street: Suburb: Postcode: State: Trustee/Director Member Both 19

20 Member 2 (if applicable) Mr Mrs Miss Ms Other: Full Name: TFN DOB (dd/mm/yy) gender: male female Occupation: Mobile: Residential Address Street: Suburb: Postcode: State: Trustee/Director Member Both Member 3 (if applicable) Mr Mrs Miss Ms Other: Full Name: TFN DOB (dd/mm/yy) gender: male female Occupation: Mobile: Residential Address Street: Suburb: Postcode: State: Trustee/Director Member Both 20

21 Member 4 (if applicable) Mr Mrs Miss Ms Other: Full Name: TFN DOB (dd/mm/yy) gender: male female Occupation: Mobile: Residential Address Street: Suburb: Postcode: State: Trustee/Director Member Both section d - establishment of bank account I/We instruct Rogerson Kenny to establish a Macquarie Cash Management Trust account for the Superannuation Fund No Yes (Further documentation will be required, we will contact you in due course) section e - client agreement Agreement - by signing ths form, I agree: I/We agree that RKS Nominees Pty Ltd may collect, use and store my/our personal information for the process of processing my/our application and to provide ongoing services. This complies with the relevant laws as well as in accordance with Rogerson Kenny Privacy Policy, a copy of which can be provided on my/our request. Such information may include but is not limited to Tax File Numbers, Bank Account details, Driver s Licence and Passport information. I/we also understand that I/we can request in writing this personal information that Rogerson Kenny holds on me/us. I/We hereby declare that the above infomration is true and correct at the time of completing this application form. In the case of a new SMSF, I/we instruct Rogerson Kenny to provide the necessary documentation in order to establish the SMSF, Corporate Trustee and agree to the fees specified. I/We ackowledge and agree that Rogerson Kenny is appointed as the administrator of my/our SMSF as at the date of this signed application form. I/We agree to have our information given to Macquarie Equities Limited ABN for the establishment of a Bank Account if I/we have so indicated I/We ackowledge that Rogerson Kenny will register the fund with the Australian Taxation Office for the purpose of acquiring an Australian Business Number and Tax File Number (where applicable). I/We agree to the release of information between Rogerson Kenny and my/our listed adviser as set out in Section F of this application form 21

22 Please Sign below: Member / Director 1 Name: Signature Date: Member / Director 2 (if applicable) Name: Signature Date: Member / Director 3 (if applicable) Name: Signature Date: Member / Director 4 (if applicable) Name: Signature Date: section f - adviser use only Adviser Details Adviser Name: AFSL Number License Number Company Name: Company ABN: Postal Address Street: Suburb: Postcode: State: please return your completed form: by post to: Rogerson Kenny PO Box 323, MOUNT WAVERLEY VIC 3149 scan and to: mark.rogerson@rogersonkenny.com.au payment details - new smsf establishment only amount: $1, gst = $ = total $ 1, EFT Payments made by EFT: RKS NOMINEES PTY LTD Bank: Commonwealth Bank of Australia Branch: Mt Waverley VIC Australia BSB: Account: CHQ Please enclose cheque made payable to RKS NOMINEES PTY LTD 22

23 notes: disclaimer: The information provided is general information only and therefore does not constitute financial advice and should not be relied upon as financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice which takes account of your particular objectives, financial requirements or needs, you should consider seeking independent financial advice from a licensed financial advisor before making a financial decision. If you would like further information regarding this booklet or any of the services mentioned, please contact Mark Rogerson of Rogerson Kenny SMSF Accountants. We offer an obligation and cost free initial interview. mark rogerson address: Suite 13, 241 Blackburn Road, Mount Waverley, Victoria, Australia, 3149 postal: PO Box 323, Mount Waverley, Victoria, Australia, 3149 phone: Fax : mark.rogerson@rogersonkenny.com.au Copyright Rogerson Kenny 2012