Things to consider

How much super do I need to set up an SMSF?

There is no minimum amount, however very low balances may not be cost effective and could trigger a review by the ATO preventing your SMSF from becoming registered.

It is recommended you compare your current super fund fees to the ongoing costs of an SMSF before making a decision. An SMSF enables you to combine your super balance with your partner / spouse

Where can I get advice on setting up an SMSF?

Stake Super cannot and does not provide advice on whether an SMSF is suitable for you.
If you would like to receive personalised financial advice we recommend you seek out a licensed financial adviser to provide this advice.

You can search for an SMSF Specialist Advisor (Profession: Financial Planner) via the SMSF Association here: https://smsfconnect.com/find-a-specialist

Can I set up an SMSF if I live overseas?

No, if you are currently living overseas, it is unlikely you will be able to set up an SMSF as the fund needs to be established in Australia and the ‘central management and control’ also needs to be in Australia. 

More information is available on the ATO website here: Check if your fund is an Australian super fund

If you are a current Australian resident and may move overseas for an extended period of more than 2 years, this may also impact your ability to remain a member and trustee of your SMSF. Seek specialist advice if you are in this situation.

Who can be a member of my SMSF?

An SMSF may have up to six members.
The majority of SMSFs have one or two members, where the two members are a couple.
The only key restriction is that one member of an SMSF cannot be an employee of another, unless those members are related.

Does each SMSF member have their own accounts and investments?

Each member has their own account balance however accounts and investments are pooled within the SMSF.

Where can I learn more about being a trustee of an SMSF?

The SMSF Association has some great content on their SMSF Connect website including a free learning course for SMSF trustees: https://smsfconnect.com/understanding-smsfs
The ATO also lists approved SMSF education courses on its website here.

Individual vs company trustee for SMSF - which is best?

A special purpose company trustee is generally considered the best option compared to two individual trustees.

Key reasons to use a special purpose trustee company:

- An SMSF can be set up with a single individual as the sole member;
- A company trustee provides stronger legal support for the electronic signing of SMSF trust deeds (Individual trustees rely on inconsistent laws which are different across each State);
- A company trustee ensures all investments are legally separate from those of the members;
- An SMSF with a company trustee can add/remove members of the fund without having to change the name on the investments (which can involve a lot time / paperwork / fees)

What documents are needed to set up an SMSF?

The following documents are required when setting up your SMSF:

- SMSF trust deed (also known as a ‘Deed of Establishment’);
- Trustee resolutions to establish the SMSF;
- Trustee consents to act;
- Membership applications;
- ATO trustee declarations;
Where you are setting up an SMSF with a corporate trust, you will also need:
- A special purpose trustee company constitution; and
- Member resolutions for the trustee company.

These items are not essential at the time of setting up an SMSF, but are required to be put in place as part of the running of an SMSF:

- SMSF investment strategy; and
- Appointment of auditor minutes.

Do I need a lawyer to organise an SMSF trust deed?

Only lawyers can draft legal documents such as an SMSF trust deed. Stake Super has engaged a specialist SMSF document provider that provides full legal sign off and regular updates on all of their documents.

What name can my SMSF have?

There are no major restrictions on SMSF names and unlike company names they do not need to be unique.
From a practical perspective, we recommend the following when naming your SMSF:

- The name is short - less than 18 characters total;
- The name contains the word “Fund”;
- Use “super fund” rather than “superannuation fund”;
- The name contains or relates to your family name / surname;
- The name is not overly long, complex, offensive or will in any way trigger your SMSF registration to be reviewed by the ATO.

Do I need to have a personal account with Stake before setting up an SMSF?

No, you do not need a personal account with Stake in order to set up an SMSF. However, you will need to provide personal details to create a profile to which the SMSF account will be linked. The operations team will walk you through the process at the appropriate stage of onboarding.

Is there a minimum cash balance I must retain?

No, however you need to ensure you retain enough cash to cover any fees, insurance premiums and taxes payable.