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5. The Process for Setting up A New SMSF

In most cases McMasters’ attends to these matters for the trustees, but technically they are still the responsibility of the trustees. This list is not in chronological order.

Determine who will be the members and who will be the trustees.
Execute a trust deed. A solicitor must prepare the deed. To execute the trust deed the trustees must sign and date the deed.
The member completes a member's application form.
If there is an employer sponsor, which is very rare, the employer sponsor signs the deed and completes an application to become an employer sponsor.
The employer contributes to the SMSF, the member contributes to the SMSF or existing benefits held in another fund are rolled over into the SMSF. The SMSF does not commence until one of these three events has occurred (since without trust property there cannot be a trust).
A tax file number request and an ABN application is lodged with the ATO and an application to register as a regulated fund is lodged with the ATO within60 days.
The trustees open a bank account in the name of the SMSF. This may be, for example, something like "Joe Smith as trustees of the Smith Superannuation FundThe trustees will need to provide a signed copy of the deed and pass a "100" point identity check. A corporate trustee will also have to show a copy of its constitution and prove the identity of its directors.
A register is created to record the minutes of meetings of the trustees. This is normally a ring binder that includes copies of the trust deed, and all other documents to run the SMSF and a copy of all trustee minutes and the accounts of the SMSF.
An administration system is created to record the financial position of the SMSF and the details of member's benefits. This need be nothing more than the correct completion of all cheque butts and the filing of all documents relating to the SMSF, eg the CHESS records for the purchases and sales of shares, and ideally include setting up on Banklink and possibly Praemium.
The trustees provide members with certain information regarding the SMSF.
The Trustee signs a statement saying he or she understands the duties of a SMSF trustee.