Self-managed super fund (SMSF) is a tool for people, to save for life after retirement. This fund is offered by Australian financial system. The main advantage of this fund is that it is managed by the trustees who are appointed at the time of smsf setup. The trustees of the fund are responsible for following laws and regulations of the fund as per government rules.

Steps that you need t follow for SMSF setup are

Establishing a trust: You need to establish a trust before you register with ATO. The trust should have trustees, assets, identifiable beneficiaries, and most importantly intention to create a trust.

Obtain the trust deed: The rules and conditions under which the SMSF will operate should be set which is known as trust deed. The set of rules should be prepared by a legal practitioner who understands the retirement laws. Care should be taken that the trustees should be given maximum control and flexibility.

Signing of declaration: The trustee or the director of the SMSF should sign a declaration stating that they understand the obligations, duties and responsibilities of a trustee or a director. The declaration should be according to the format given by the ATO and signed within 21 days of becoming a trustee.

Conduct election along with regulator: The election informs ATO that the SMSF will be subject to requirements of appropriate retirement rules. If the election process is not done within 21 days of setup, it will be treated as complying fund for taxation purposes and will be taxed at highest marginal tax rate.

Open a bank account: The trustee should open a cash account so that the fund can accept contributions, rollovers and earnings from investments. This account will be responsible to pay to all type of expenses.

These five steps are critical in setting up of a SMSF. You can browse online for more details.

Original Source: https://smsfaccountingservices./2019/03/13/5-critical-setups-for-smsf-setup/