A self-managed super fund (SMSF) is a type of trust. Its sole purpose must be to provide an income for its members upon retirement or to families in case of member’s death. The SMSF has its own tax file number and Australian Business Number (ABN) and requires a bank account of its own. The members of the fund transfer their contributions directly into the account, just like retail super fund.

SMSF setup is considered complete when a few members of the trust are appointed as the trustees. They are responsible for all the major decisions involving the funs. They decide where the investments should be made and when to withdraw and invest in other fields.

According to the standards set by the government, it is a must for companies to take up SMSF audit, once every year, from the time it has been established. The auditor should be an independent person, who is connected to the company or the trustees. The company needs to employ this auditor at least 45 days before the actual submission of its tax returns.

The main advantage of this fund is that the members of the fund control it, so chances of losing the money is very less and they make sure that they make the best decisions for themselves.

Everyone, who is 18 years of age and over, not under a legal disability, can be a trustee, the members of the trust should not be convicted, bankrupt or disqualified by the regulator.

If a person has any balance amount in the previous superannuation fund, the individual can request for a rollover and their funds would be transferred to the SMSF account that can be used for making other investments.

If any person wishes to make extra contributions to their superannuation funds, they are allowed to do so. It is very important for the trustee member to maintain all the rules and regulations of the fund so that will not be disqualified.

Source: https://smsf-setup..com/2019/08/things-to-know-before-investing-in-smsf.html