Frequently asked questions
What is a Self-Managed Superannuation Fund?
A Self-Managed Super Fund (SMSF) is a private superannuation fund that you manage yourself. Unlike retail or industry funds, members of an SMSF are also its trustees or director(s) of a corporate trustee, which means you are responsible for investment decisions and ensuring the fund complies with super and tax laws.
What structure should I choose for my SMSF?
An SMSF can have either individual trustees or a corporate trustee. Each option has different setup costs, legal requirements, and long-term benefits. The right structure depends on your circumstances and goals — we can help you choose the most suitable one.
What's the difference between a corporate trustee and individual trustees?
Corporate Trustee: A company acts as trustee, and each member is a director. This structure offers easier administration, greater asset protection, and flexibility when members change, however the cost is higher.
Individual Trustees: Each member is appointed as a trustee in their personal capacity. While cheaper to set up , it may involve more complexity if members join or leave the fund.
What Investments can I hold in my SMSF?
SMSFs can invest in a wide range of assets such as shares, managed funds, term deposits, property, physical gold, cryptocurrency and more. However, all investments must comply with superannuation laws and your fund’s investment strategy.
Can I use my personal bank account for my SMSF?
No. Your SMSF must have its own bank account to keep fund assets separate from personal or business assets. This is a key compliance requirement.
How much does it cost to set up a Self-Managed Super Fund ?
Safenest Super offers the following fees to set up a new SMSF:
$780 with individual trustees;
$1680 with a company trustee
Can my SMSF invest in property?
Yes, SMSFs can invest in both residential and commercial property, provided the investment meets the sole purpose test and complies with superannuation rules. Borrowing through an SMSF is also possible under strict arrangements.
What are the compliance requirements for an SMSF?
Key requirements include:
Preparing an investment strategy
Keeping accurate records and accounts
Lodging annual financial statements and tax returns
Undergoing an annual independent audit
Complying with contribution and withdrawal rules
Please refer to the ATO website below for further information https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf
What other fees are payable to the ATO and ASIC?
Self-Managed Super Funds are regulated by the ATO, thus every SMSF is required to pay an annual supervisory levy of $259 to the ATO, which is included in the yearly tax return.
If your SMSF operates through a special purpose trustee company, your fund is obligated to cover an annual company registration fee of $67 (for the 2025-26 financial year) to ASIC. This annual company registration fee is indexed each year on the 1st of July.
You might consider paying the ASIC fee for ten years at a discounted rate in advance. For example, the current ASIC fee for a ten-year advance payment for a special purpose company is $463. Please be aware that this fee is non-refundable, and companies are still required to complete their annual review each year to ensure information is correct.
For more details, please visit the ASIC link below: https://www.asic.gov.au/for-business-and-companies/companies/company-annual-review/pay-company-annual-review-fee-10-years-in-advance/
What is the cost of managing a Self-Managed Super Fund?
Depending on the investment type and transaction frequency, Safenest Super's fee starts from $1,750 (GST included) per year for a basic fund. This fee covers the preparation of annual financial reports, tax return lodgements, coordination with auditors, software costs, as well as providing technical assistance from a dedicated SMSF specialist. Please contact Safenest Super for a tailored quote for your SMSF.
What steps should I take if my SMSF requires borrowing for property investment?
Getting a loan for your SMSF is permitted in certain situations. One such situation involves limited recourse borrowing arrangements (LRBA). This necessitates the establishment of a bare trust along with a distinct standard company that acts as the corporate trustee for the bare trust. Considering the intricate nature and stringent regulations surrounding SMSFs, it is highly recommended to obtain professional advice from a licensed financial planner before undertaking an LRBA within an SMSF.
What's the tax rate for an SMSF?
If your SMSF is a complying super fund and still in accumulation phase or has commenced a transition to retirement pension, your fund must pay 15% concessional tax rate on their assessable income, such as assessable contributions, interest, dividends, distributions, rent and capital gains from assets owned for less than 12 months. Your SMSF will receive 1/3 discount capital gains if an asset is held for over 12 months, this brings the effective CGT to 10%.
If your SMSF is in full retirement pension phase, the tax rate is 0% on any income and realised capital gains. They are exempt current pension income (ECPI), which is tax free.
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