Can a SMSF have just one member?
Yes you can have a Single member fund. The Trustee requirements are slightly different for a Single member fund.
A Single member fund can have a Corporate Trustee with either:
- A Sole Director who is the member of the fund, or
- Two directors, one of which is the member with the other Director being either related to the other director or not an employee of the other Director
Alternatively
A Single member fund can have two individuals as Trustees, provided the member is one of the Trustees with the other individual being either:
- A relation of the member, or,
A person who does not employ the member.
Who can be a Trustee?
Provided you are over age 18 and are not considered a “disqualified person” you are able to act as a trustee of a SMSF.
A disqualified person:
- Has been convicted of an offence involving dishonesty
- Is insolvent under administration (i.e. bankrupt), or
- Has, at any time, has been subject to a civil penalty order under the SISA.
What is a Self Managed Superannuation Fund (SMSF)?
A SMSF is a small trust set up with the primary purpose of providing retirement benefits to its members. A core difference from other Superannuation vehicles is that all the members must also be trustees. The maximum number of members is four (4).
The definition of a SMSF varies depending on whether the fund has:
- Individual Trustees
- A Corporate Trustee
- A Single member fund
A Fund with individual Trustees qualifies as a SMSF if:
- It has 4 or fewer members
- All the members are trustees
- No Trustee is remunerated for their duties or services as a Trustee, and
- No member is an employee of another member except where they are also related.
Where a fund has a Corporate Trustee, it is a SMSF if:
- It has 4 or fewer members
- All the members are Directors of the Corporate Trustee
- All the Directors of the Corporate Trustee are also members of the fund
- No member is an employee of another member except where they are also related
- No Director is remunerated for their duties or services as a Trustee, and
- The Corporate Trustee is not paid for services as Trustee.
We are an independent family owned business that has specialised in Self Managed Superannuation (SMSF) for more than 30 years..
Who should have a SMSF and How much money do you need for a SMSF?
If you are looking for control over your investments, a SMSF may be a suitable vehicle for you.
A SMSF can allow you to hold direct property within your Superannuation. (There are certain restrictions with property, so it is very important to seek advice before you enter into any purchase contracts for property.)
However a “set and forget” mentality for your fund’s investments will not, in the long term, maximise your Superannuation. It is necessary to periodically (and at least annually) review your fund investments. So you do need to be prepared to put in some effort to have a successful SMSF. Appointing a professional to administer your fund will take care most of the paperwork issues associated with having a SMSF and will leave you free to concentrate on the investment side of your fund.
SMSFs are more cost effective at asset levels of $100000 or greater. But if you intend to make contributions to quickly build up your accumulated Superannuation, you could still consider setting up your own SMSF.
How much Superannuation do you need to set up a SMSF?
There is no minimum requirement before you can set up a SMSF. However these types of funds become more cost effective with higher balances. There are many views of what the minimum should be before you proceed with your own fund; some suggest $100000, other views are for higher balances.
If your balance is quite small, you may find your fixed operating costs are too high and you will have difficulty in diversifying your fund’s assets. However if your current accumulated Superannuation is small but you intend shortly to make a significant contribution, it may still be worthwhile to set up a SMSF.
The Alan Skerritt Consultancy
Windsor Holdings Pty Ltd (ACN 010 018 041 ABN 12 862 040 559)
(Incorporated in Queensland) Trustee
What is a Self Managed Super Fund (SMSF)?
Can a SMSF have just one Member?
How much Superannuation do you need to set up a SMSF?
What contributions can be accepted by my SMSF?
Contribution Limits - concessional and non concessional contributions
Can my SMSF pay a pension when I retire?
Transition to Retirement Income Streams (TRIS's)
What tax will I pay on my pension?
Compliance issues with the Sole Purpose Test
Buying a property within your SMSF
Nothing in this website should be considered personal advice. The information is of a general nature and does not consider your personal needs and objectives or your financial situation.
