Frequently Asked Questions
- Is a Self Managed super fund hard to set up?
There is some paperwork involved in setting up a fund, but we can walk you through it and set up the fund in a way that suits your needs. We make sure your fund is compliant and make this as easy as we can for you.
An SMSF has the following requirements for setup:
- SMSF’s need a trust deed
- SMSF’s must have trustee/s to make decisions for the fund. These can be individual trustees or corporate. There are different benefits to either alternative.
- Minutes are required for all decisions made for the fund, ie. Appointment of members and trustees.
- The fund must complete an investment strategy
- It needs to be registered with the ATO and ABR.
- A bank account will need to be set up
- An exit strategy must be prepared
Let Blue Chip Super do this for you
- Can I pay for life insurance from my super fund?
Most SMSF’s allow you to pay for life, TPD and income protection insurance out of your SMSF. This saves you from budgeting this into your everyday expenses and still having the cover you need. It may also mean you can choose a higher level of cover that you want but couldn’t afford in your day to day costs.
A specialist insurance advisor can assist in finding the best policies to suit your individual needs.
- Is running a SMSF difficult?
What you need to do if you have an SMSF
Essentially you need to ensure your fund remains compliant with all relevant laws.
SMSF’s must do a tax return each year. You need to ensure your SMSF accountant has documentation for all transactions made within that financial year. At Blue Chip Super we find our clients find it easy to send through the documents as they receive them so that when it comes to tax time we already have all of the information and it’s hassle free.
Your fund must have trustees which can be individuals or a company (a corporate trustee). If you choose to have a corporate trustee you will need to keep your company details up to date. Payment of ASIC company fees can come straight out of your super fund bank account, so it’s not an additional cost to you. Blue Chip Super can look after all of this administration for you and also arrange the payments at no extra cost so you don’t need to worry about a thing.
SMSF’s are highly regulated. They get audited annually with every tax return. Auditors will ensure that the super fund is being used for the sole purpose of retirement. BCS uses an independent auditor and the cost is included in your monthly fee.
Our staff can advise you on the opportunities of an SMSF and also the restrictions to ensure your fund is compliant.
- When can I take money out of my super
This is referred to a "condition of release".
In short, they are:
- Retirement and over preservation age (55-60yrs depending on when you were born)
- Attaining Age 65
- Server financial hardship
- Compassionate grounds (determined by APRA)
- Pensions including Transition to Retirement
The list above is not exhaustive but illustrates the main conditions. Most have to meet technical definitions. Care and advice should be taken.
- What is Transition to Retirement?
What is Transition to Retirement?
The government has allowed us to ease into retirement. Transition to Retirement Pension allows you to take up to 10% of your fund balance as a pension throughout the year, all whilst you are still working.
Whilst appealing, it may not be for everyone as it instigates drawdown from your super sooner. Advice on this type of strategy should be sought.
- Can I purchase property with my SMSF?
Of course. Recently the government changed legislation which allows super funds to borrow. Naturally there are some rules and restrictions around the use of custodian or bare trusts but it is certainly achievable.
Advice should be sought with this type of strategy, in particular the funds cashflow needs to be able to support the strategy.