Build an SMSF company that acts solely as the trustee of your Self-Managed Super Fund (SMSF). The constitution prohibits distributing income and property to shareholders. It is ‘safer’ for your SMSF to have a Special Purpose company. You save on ASIC’s annual charge.
We check your company registration. This is before it proceeds to ASIC.
Incorporating SMSF Company with ASIC is important.
When I started practising in superannuation law in the 1980s, the majority of SMSFs had just ‘dad’ as the trustee. In those days you only needed one trustee. Now all the members must be trustees, or all the members must be directors of the company. These days most superannuation lawyers, accountants and financial planners recommend a company as trustee of your SMSF. This is because:
You can’t mix SMSF assets with your other assets. A dedicated special purpose company has no other job. When ‘mum’ and ‘dad’ buy an asset for the SMSF, they may forget to add ‘as trustee for the SMSF’. There is a breach. In contrast, if you buy an asset in the name of the company and forget to put ‘at SMSF’, it is not a big issue.
For more legal advice telephone us. We are a law firm. We can help you answer the questions.
Adjunct Professor, Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
Legal Consolidated Barristers and Solicitors
Head Office: 39 Stirling Highway, Nedlands, WA
National Australia law firm
Mobile: 0477 796 959
National: 1800 141 612
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