SMSF or self-manged super fund represents a legal tax structure that gives you more control over your super. Its sole purpose is to provide for your retirement and it enables you to manage your funds while controlling and keeping track of your money and investments.
This super fund give you more flexibility when it comes to planning and making investments both before and after your retirement. You are in charge of everything so it is essential to be familiar with the laws and understand your legal responsibilities. It is important to know that SMSF must have at least two members but it can’t have more than four members. As a member of the fund you also have the role of a trustee. Each trustee is responsible for running the fund and controls the tax strategies, assets, insurance options and ultimately is in charge of the whole retirement planning.
The setup process can sometimes be confusing so it is advisable to seek professional help form reputable SMSF providers who have the knowledge and expertise to handle and complete the whole procedure quickly and easily. The SMSF setup costs are the first thing that comes to mind when preparing to establish your super fund. Well, this depends on many factors and the expanses are of course different for individual and corporate members.
For individual trustees the SMSF setup costs are around $150, while the super fund that consists of corporate trustees can be established for $1000-$1200. The whole procedure includes various important steps. Since SMFS is a trust obtaining a trust deed is of course the first step. The trust deed is the foundation the sets out the rules and regulations for establishing and managing the fund. Your SMSF provider will make sure this important legal document is properly drafted and prepared. The next step is to provide a declaration that you understand your role and obligations as a member and trustee. Professional providers can submit this document to the ATO and this will cost you somewhere around $100-150$.
After all this is completed it is time to register your super fund with the Australian Tax Office (ATO) and get a ABN for it. Once this is done the next stage involves opening a new bank account for your SMSF. This is essential and keeps the retirement funds separate form your other finances. The SMSF providers can take care of all this and can also help you prepare a smart and safe investment strategy that complies with the specific super laws and regulations.
source: http://www.smsfwarehouse.com.au/smsf-setup/costs/