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How to set up/establish an SMSF    

Below are the four general steps or processes (both legally and personally) that should be followed in order to successfully establish your SMSF fund.


  1. Members and trustees.

Decide who will act as trustee, along with each nominee or member to be included (ensuring all members are eligible to be included) in the fund. A lawyer can facilitate this part of the process, in what is referred to as the trust deed. An SMSF can have up to four nominees, where a company can be handed the responsibility of administering the fund. Alternatively, another nominee included in the fund can be assigned the task. If you are assuming the responsibility of trustee, you must sign an official declaration stating that you understand what is required of you as the acting trustee of the SMSF fund.


2. Seek the right advice.

Before the trust deed is finalised, advice from financial professionals should be sought to make sure that you have the most tailored investment strategy. This is also a legal requirement. The investment strategy will be optimised to provide the best outcomes, in consideration of all stages of the SMSF lifecycle. This may also involve consultation with financial or legal professionals in advising you of the most appropriate trust structure


3. Fulfill various tax obligations.

The ATO will require certain processes to be completed before the SMSF, or trust, can be officially regulated. The basic processes that will satisfy the Australian Tax Office requirements are listed below, but are not limited to:

  • Registering an Australian Business Number
  • Obtaining a Tax File Number


There may be other considerations that need to be acknowledged and it is wise to seek the help of a tax professional in order to ensure that every tax related obligation is satisfied.


4. Create the trust by finalising the trust deed.

This step involves you registering to become an official member of the fund, in which you must also open up a bank account to hold assets in the fund’s name (contributions/benefits). All members must include their Tax File Numbers upon registering, while the bank account should be created in the fund’s name.

The benefits of establishing your own SMSF are vast, and seeking the right financial advice during these critical first steps is paramount. Also demonstrated is the essential need for the right financial management to assist during the life of the SMSF. This is to balance and make good on the requirements and intended outcomes of the fund itself, in regards to:

  • Maximising your returns and suiting your life needs, while
  • Remaining financially and legally viable/compliant.


Hiring the services of a financial advisor can give you piece of mind that beneficiaries now and in the future are getting the most out of the SMSF, allowing you to get on with the more important things in life.


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