My journey of setting up the SMSF

Here is how I set up SMSF (Self-Managed Super Fund) with the help of Softpost SMSF consultants.

1. Trust Deed and Corporate Trustee Setup:

   • Softpost SMSF consultants created the Trust Deed for my SMSF and established the Corporate Trustee for a fee of $799. In Corporate Trustee, Directors of the company have limited liability. The corporate structure provides a degree of protection, meaning that liabilities incurred by the SMSF are separate from personal assets. But in Individual Trustee, Trustees are personally liable for the SMSF’s liabilities. If the fund incurs a liability or a legal issue arises, the personal assets of the individual trustees could be at risk.

2. Lodging SMSF Application with ATO:

   • Softpost SMSF lodged SMSF application with the ATO (Australian Tax Office). The ATO then provided the ABN (Australian Business Number) for the SMSF and dispatched the TFN (Tax File Number) to my address.

3. Document Signing:

   • Then I signed necessary documents like the Trust Deed, minutes of directors, shareholder meeting minutes, and company constitution. These were uploaded to the Softpost site for record-keeping.

4. Obtaining Director IDs:

   • Since both I and my partner are directors of the Corporate Trustee company, I applied for Director Identification Numbers (DINs) at the Australian Business Registry Services (ABRS) website.

5. ATO Verification:

   • The ATO reviewed my SMSF application, contacted me for verification, and ensured I understood SMSF rules before approving the fund.

6. Bank Account Setup:

   • Once I had my SMSF's ABN, I went to the bank to open an account for the SMSF. However, the bank only opened the account after the ATO approved SMSF and its status was marked as "Complying" on the Super Fund Lookup website Superfund Lookup

7. Obtaining ESA (Electronic Service Address):

   • I requested Softpost SMSF consultants to provide the ESA, which is necessary for rollovers and making contributions.

8. Rollovers:

   • Once the ABN, ESA, and bank account were in place and SMSF fund was "Complying", I initiated the process of rolling over my existing superannuation into the SMSF using the myGov website. The rollover funds were deposited into the SMSF bank account after three business days.

9. Investing SMSF Funds:

   • I used part of the SMSF funds to invest in the stock market (through an account opened with Interactive Brokers) and used the remaining funds as a deposit to purchase a home through the SMSF.

This entire process took around 1 month! So be patient when setting up new SMSF! For any questions please contact me