As with other aspects of Self Managed Super Funds there are rules around who can be a Trustee or Director of your SMSF. Above all else, you must be able to satisfy these conditions before proceeding (or incurring any costs) with an SMSF.
As with other aspects of Self Managed Super Funds there are rules around who can be a Trustee or Director of your SMSF. Above all else, you must be able to satisfy these conditions before proceeding (or incurring any costs) with an SMSF.
“Highly recommend Wealth Seekers to anyone that is looking at Self Managed Super Fund. Adrian and Ryan were very professional and went above and beyond when required. They made a complex process very simple for us and gave us solid sound advice pertaining to our situation.” – Dale Heath
“Highly recommend Wealth Seekers to anyone that is looking at Self Managed Super Fund. Adrian and Ryan were very professional and went above and beyond when required. They made a complex process very simple for us and gave us solid sound advice pertaining to our situation.” – Dale Heath
Who can be an SMSF Trustee?
Running an SMSF is complex by definition – you are taking charge of your retirement future. The rules, structures and decisions are going to be more complex than handing over everything to an industry or retail superannuation fund and that’s one reason an SMSF is not for everyone. For those that want greater control over their superannuation, running your own SMSF can be very rewarding.
However, there are some requirements you need to meet to be eligible to establish your own Self-Managed Superannuation Fund.
To be eligible to establish your own Self-Managed Superannuation Fund, you need to be:
- Older than 18 years of age
- Not an employee of another member unless they are related
- Have not been convicted of an offence involving dishonest conduct
- Have not been subject to a civil penalty under the superannuation legislation
- Not insolvent or under administration (an undischarged bankrupt)
- Have not been disqualified from acting as a trustee of a superannuation fund by the ATO.
You can combine your superannuation balance – which is popular with married couples, and you can also include family members, adult children, or anyone who meets eligibility requirements – though there are limitations on the number of members you can have in an SMSF.
Financial requirements
Ideally, a reasonable superannuation balance is needed if you want to achieve cost efficiences and/or invest in property, with the latter depending on the value of the property, your income, and your lender of choice.
- Superannuation balance, or combined of $200,000 or more
- Superannuation contributions, or combined contributions of $15,000 p.a. or more
Before you can use your super to invest in property
SMSF can be a very tax effective way of investing in property and understanding how can have a significant impact on your overall wealth. Before investing you will require the following:
- A Superannuation balance or a combined balance of over $200,000
- An investment strategy
- An established Self-Managed Superannuation Fund
- Super funds rolled over to your SMSF
- Pre-approval for a LRBA loan
- A clear understanding of what constitutes an SMSF compliant property
Establishing, investing in and running an SMSF in a compliant way does take some experience, ideally seeking the right professionals who are working together with one another to set up and achieve your fund’s objectives is highly recommended.
Want to know more about Self-Managed Super Funds?
Self-Managed Superannuation Funds (SMSF)
