Thinking about having your own DIY superannuation fund?
If you are disenchanted with the investment returns that your public offer
superannuation fund is providing you can consider setting up your own Do-It-
Yourself superannuation fund.
As there are set up and ongoing administration costs to be met a DIY fund is considered
beneficial if you have, or in the short term will have, $150,000 in funds.
You may wish to transfer monies from your existing Public Offer Superannuation Funds
(POSF) into your own superannuation fund. Before doing so you should enquire with your
POSF as to the balance of your account and whether the balance can be transferred.
Some POSF’s do not permit this and at present legislation does not enforce this option.
You should also check any insurance cover that you hold with that POSF and ensure that
you can obtain similar insurance through your own Fund.
So what’s involved?
Firstly, you will need to complete an application form with your DKM accountant to ensure
all the correct information is provided. The DKM office then sends this form to it’s
superannuation administration service division which will oversee the preparation of all
the required documentation. You will also need a lawyer to draw up the trust deeds.
Ensure the law firm is familiar with the superannuation regulations so they cover all the
required inclusions and options available to date.
You need to ensure that there are no more than four members in the Fund and you
need to remember that all members will also be trustees of the Fund.
Once the documentation has been prepared then it is necessary for all of the trustees to
sign the papers.
The superannuation Administrator will then see to all the lodgement and stamp
duty requirements and return to you the final stamped trust deeds and details of
the Fund’s Tax File Number and Australian Business Number and Compliance
With the help of your financial advisor or superannuation Administrator you need to
formulate an investment st