From one to four. (Please note that it is proposed but not yet legislated to increase the maximum number of members to six.)
Fund set up starts from $550 for individual trustees, and $1650 for corporate trustees.
ONGOING COSTS = $259 annual ATO SIS levy + annual administration and audit costs from $1,280.
ASIC and the ATO recommend a minimum balance of $200,000 for a SMSF to be cost effective. But some funds below that balance may still work out in your favour. Your fund costs will depend on how much financial advice, investment management and accounting fees you pay for, compared to how much your fees would be in your existing retail or industry fund.
How much you can contribute to your super fund is called your contribution cap. It varies depending on your age and whether your contributions are tax deductible.
If you’re over 65, you must meet a work test to be eligible to contribute to super and be employed during the financial year before you make the contribution. Employment must be 40 hours in a consecutive period of no more than 30 days.
Yes. SMSFs can borrow under certain arrangements, which might suit major asset acquisition such as property.
Yes. Residential property can be bought from an unrelated party, and commercial property from related or unrelated parties.
No. SMSF assets must be maintained on an arm’s length basis – they can’t be used by trustees, members or related parties.
Yes. But there are risks in using a company for multiple purposes.
Under SMSF regulations, there can’t be any overlap between SMSF funds and other company funds. If your company had financial or legal difficulties through its other trading activities, your SMSF assets could be at risk. If your SMSF is sued (e.g. a tradie on your SMSF rental property has an accident), the rest of your company assets may be at risk.
You can register a special purpose SMSF company that only acts as trustee of a SMSF (with a reduced annual ASIC company fee).
If you have met your preservation age and are still working, you might be able to access your super through a transition to retirement pension. This type of pension has strict limits on minimum and maximum withdrawals in a financial year.
Before you take any benefits from your super fund, talk to a super specialist about tax, documentation and cashing conditions.
Yes. But when you retire, your intention to retire must be genuine.