1. Establish a superannuation trust deed. Possibly the most important document as without one you don't have a SMSF. The trust deed sets out the rules and objectives in relation to your fund. While your fund must be compliant with SIS rules it must also comply with the Deed.  This deed must be signed and dated.
   
   
2. Appoint a trustee. At the same time as establishing the trust deed, a trustee must also be appointed. The trustee can be either individuals or a company... preferably not a trading company.  The trustee must consent to their appointment in writing.
   
   
3. Trustee Declaration. The ATO have regulated that trustees or directors of a corporate trustee of a SMSF must sign a trustee declaration form within 21 days of their appointment.
   
   
4. Register the fund with the ATO. Every SMSF must elect to be regulated by the ATO within 60 days of being established. Practically this will be done immediately the set up paperwork is signed.  Furthermore each fund must obtain a Tax File Number, an Australian Business Number and register for GST (if applicable).
   
   
5. Determine an investment strategy. This should be determined at the commencement of the fund and reviewed at least annually. Investments must be made in accordance with this strategy.
   
   
6. Open up a bank account. Every SMSF needs a bank account to be able to accept contributions. This account must be in the trustee and super funds names. Do not bank super fund money into a personal account. Until the bank account is opened the fund does not exist.
   
   
7. Accept member contributions. The members must also advise their tax file numbers in order for a fund to accept super contributions.
   
   
8. Roll over existing benefits. This cannot be done until the fund is recognised as established by the ATO.
   
   
9. Life insurance. Consider the needs of members and review their life insurance requirements on commencement and annually.
   
   
10. Appoint an Auditor.  An SMSF must undergo an annual audit by an independent, approved auditor, which examines the fund’s financial statements and assesses the trustee’s overall compliance with the superannuation legislation.  The auditor is effectively the policeman overseeing the privatisation of the regulators.
    
    

Finally also consider as part of your planning to put in place enduring power of attorney for that just in case situation.

For more information talk to Terry Dewing on 9526 1211 or email Terry.