Online SMSF

What is an SMSF?

A self-managed superannuation fund (SMSF) is a superannuation trust established for the primary purpose of delivering retirement benefits to the members.
Unlike retail, corporate or industry super funds, an SMSF is required to have less than 4 members and the members are also trustees, or directors in the case of a corporate trustee.
In an SMSF, the trustees operate the SMSF and also make all the investment decisions.

As a trustee of the SMSF you control how the SMSF is run. Along with the other trustees you’ll be responsible for managing the SMSF according to its trust deed and the laws and rules that apply to SMSFs. SMSFs are regulated by the ATO.

How much does an SMSF set up cost and what does it include?

The establishment fee to set up a RaboDirect Online SMSF is $695 and is due when you apply online. The establishment fee is paid by direct credit to RaboDirect.

The $695 establishment fee covers:

• Preparation of all the documents you need to set up your SMSF, including trust deeds
• Lodgement of your ABN and TFN application with the ATO
• Opening a RaboDirect High Interest Savings Account for your SMSF
• Lodging rollover requests with your existing superannuation fund(s)
• Delivering your trust deed and other relevant SMSF documentation in a folder for you to keep

The $695 establishment fee does not include set up of a company. There is a separate company set up fee of $840 payable if you wish to use a corporate trustee for your SMSF and do not have an existing company.

To find out more about all the services available as part of the RaboDirect Online SMSF, see ‘What you’ll pay’ under documents and fees.

What are the duties of an SMSF trustee?

Being a trustee of an SMSF is a big responsibility. You’ll be responsible for managing your SMSF according to its trust deed and the laws and rules that apply to SMSFs.  The ATO can prosecute you if you fail to comply with these rules. A summary of the responsibilities of an SMSF trustee is outlined below.

Why do I need to quote my TFN?

It is not compulsory to quote your TFN, however if a member has not provided their TFN, this will delay registration of the Fund and the ATO issuing the ABN and TFN. Your Fund may also have to pay additional tax on contributions and it may not be able to accept some member contributions. The member may also not be able to receive the super co-contribution. The TFN of each member of the Fund will also be shared with Cavendish to submit your application to the ATO, for inclusion in each member's Application for Membership of the Fund and for inclusion in the Fund's annual return and member contribution reporting (where you engage Cavendish to provide ongoing administration services for the Fund).

Responsibilities of an SMSF trustee:

• putting together the investment strategy for your SMSF and investing according to that strategy
• ensuring that an independent audit of your SMSF is conducted annually by an approved auditor
• lodging your SMSF annual return each year by the due date, providing all the information required and paying the supervisory levy
• keeping comprehensive records including:
  • minutes outlining investment decisions and how decisions are made
  • the transactions of your SMSF
  • reasons for decisions on the storage of collectables and personal use assets
  • annual operating statements and annual statements of your SMSF's financial position
  • who the trustees of your SMSF are and their consent to act as trustees (trustee declarations)
  • copies of returns and information provided to members
  • required income tax and deduction documentation (including any actuary certificates)

As an SMSF trustee you will need to run your fund in accordance with the following:

• your fund’s trust deed
• the provisions of the super laws, including
  • Superannuation Industry (Supervision) Act 1993 (SISA)
  • Superannuation Industry (Supervision)
• Regulations 1994 (SISR)
• the Income Tax Assessment Act 1997 (ITAA 1997)
• the Tax Administration Act 1953 (TAA 1953)
• the Corporations Act 2001
• other general rules, such as those imposed under other tax and trust laws.

To find out more about duties and responsibilities of being a trustee of an SMSF click here)

If I have a corporate trustee do I need to register my SMSF for GST?

Most SMSFs don’t need to register for GST because most SMSFs mainly make input-taxed supplies and GST is not charged (and cannot be claimed) on input-taxed supplies. Input-taxed supplies include financial supplies and supplies of residential premises by way of rent or sale.

However you may choose to register your SMSF for GST, as GST applies to taxable sales and you may be able to claim GST credits for certain purchases. Tax issues are complex and you should speak to your financial planner or accountant about the best set up for your SMSF.

I want to rollover my existing Super to my SMSF but I am not ready just yet. Can I rollover at a later stage?

Yes - you can rollover your existing Super at any time. Give us a call, we’ll send out the paperwork and get things moving for you.  

Can I make regular contributions into my RaboDirect account?

Yes - once your High Interest Savings Account is set up you’ll be able to make regular contributions to it. You or anyone else will be able to make contributions into the account using your BSB and account number.

How much money do I need to make running an SMSF worthwhile?

The ATO advises the average annual cost to run a medium-sized fund each year is $2000, they therefore recommend that you have at least $200,000 of Super to make an SMSF cost-effective.

Should I use an individual trustee or a corporate trustee to set up my SMSF?

You can choose either of the following to set up your SMSF:

• a corporate trustee; or
• individual trustees

A corporate trustee is an incorporated company that acts as a trustee for the fund. Generally, all directors of the company must be members of the fund and all members must be directors of the company.

If you already have a company, you may choose to use it as trustee or you can set up a new company when you set up your SMSF.

Your choice of trustee will make a difference to the way you administer your fund and the types of benefits it can pay. Make sure you seek professional advice before choosing your trustee structure.

To read more about corporate and individual trusts click here

Should I set up an individual or corporate trustee?

When setting up a SMSF with RaboDirect, you can choose to set up with either individual trustee(s) (i.e. natural persons)  or a corporate trustee (i.e. a company).

If you elect to set up with individual trustees, all members must also be trustees. If you are the only member, you must appoint another individual to be trustee with you (however they may not be your employer - except if you are related).

If you elect to set up with a corporate trustee, all members must be directors. If you are establishing a single member fund, the corporate trustee may have another director (however they may not be your employer - except if you are related). Usually, a company would be set up whose sole purpose would be to act as the corporate the trustee for the SMSF.

Some considerations for setting up an individual or corporate trustee:

• There is usually only a marginal difference in wording of the trust deed
• Its generally easier to change directors for a corporate trustee than an individual trustee
• It will generally cost more for to have a corporate trustee, as you will normally need to incorporate a new company
• Running a company requires ongoing company maintenance and reporting to ASIC and additional fees may apply
• Many SIS Act penalties are often greater for a corporate trustee in the event of a breach

How much does ongoing administration cost? Is it included in my $695 establishment  fee?

If you choose for Cavendish to take care of your ongoing SMSF administration you will pay a fee to directly to Cavendish for this service. The minimum fee payable to Cavendish is $2,000 for the first year and the monthly fee is $240 with an annual maximum of $2,880. You can set Cavendish up on your RaboDirect ‘payee list’ for this payment to be made automatically every month. Administration fees are not included in your $695 establishment fee.

How do I pay my $695 establishment fee?

You can pay your establishment fee electronically via internet banking to:

Account name: Rabobank Australia Ltd.
BSB: 142-201
Account number: 10000001-04

You must include your reference number in the transfer details for the transaction so we can identify your payment. You will receive your reference number once you submit your online application form. If you don’t have your reference number simply call our friendly Customer Experience Centre on 1800 445 445 and we’ll help you.

How long does it take to set up my SMSF?

We’ll do everything we can to get your SMSF set up as quickly as possible and we’ll keep you up to date every step of the way.

The ATO generally takes between 4-6 weeks to complete registration of your SMSF. If you have elected for RaboDirect to organise incorporation of a new company for a corporate trustee, this will take an additional 3-4 days.

Setting up the SMSF (and company where requested) will start once you have returned your correctly completed Set Up Pack to RaboDirect, so the sooner you return completed documents to us, the sooner we can send the documents to the ATO .

Can my financial planner/accountant set up my SMSF for me?

Yes. They can submit your application on your behalf and help you with the paperwork. You and your SMSF members will still need to sign the relevant documents. 

I want to set up my SMSF with a corporate trustee? Can you set up a company for me?

Yes. As part of your SMSF set up we can also set up a company to be your fund’s corporate trustee. You just need to tick ‘yes’ in the Company Details section of your online application form.  It will cost $840 to set up a new company and the fee is payable to Cavendish by cheque, an invoice will be provided in your Company Set Up Pack. This fee is separate to your RaboDirect Online SMSF establishment fee.

Why do I need a bank account for my SMSF?

You need a bank account in your SMSF’s name to:  

• Rollover any existing Super into your SMSF
• Make contributions to your SMSF
• Receive income from your SMSF investments
• Manage transactions for the SMSF and members
• Pay fees and expenses related to the fund

I already have a bank account. Can I use that for my SMSF?

No. The bank account must be in the name of your new SMSF. Your SMSF bank account must be kept separate to each member’s individual bank accounts to protect the assets of the SMSF. When you use RaboDirect Online SMSF we’ll automatically set up a RaboDirect High Interest Savings account for your SMSF.

How can I find out what interest rate my SMSF account will earn?

The rate applicable is the HISA variable rate. To view your current HISA rate online click here

Who is Cavendish?

Cavendish is our expert SMSF partner. They’re award winning SMSF specialists with over 20 years experience in superannuation. You can choose for Cavendish to look after your ongoing SMSF administration.  They’ll take care of your paperwork and make sure you comply with many of your obligations as a trustee. 

We have chosen to partner with Cavendish because we believe their administration service is the best in the market. Simply tick the ongoing administration box when you complete your online application and Cavendish will be in touch to walk you through how the service works.

I would like to look after my ongoing administration myself. Is that possible?

Yes. The great thing about RaboDirect Online SMSF is that you’re in control. You choose the providers you want to use.

How do I rollover my existing Super into my RaboDirect Online SMSF?

RaboDirect can arrange everything for you. All you need to do is tick the rollover box on your online application. We’ll organise the paperwork and get your Super rolled into your RaboDirect High Interest Savings Account once it’s established - simple. You can choose to rollover existing Super at anytime, all you need to do is contact your current Super provider and they’ll organise the rollover for you.

Do I have to keep all of my Super with RaboDirect Online SMSF?

No. The great thing about RaboDirect Online SMSF is that it gives you the control and flexibility to make investments outside RaboDirect.

What will I see when I login to my RaboDirect Online SMSF account?

When you login you will see your RaboDirect Online SMSF High Interest Savings Account (master account). Now that your account is open and you’re logged in, you have access to a PremiumSaver account, a range of term deposits and low fee wholesale managed funds.

How do I invest in managed funds and term deposits with RaboDirect Online SMSF?

It’s easy to invest online with RaboDirect Online SMSF. Login to your account with your Digipass at RaboDirect.com.au.  Simply select either managed funds or Term Deposits from the left hand navigation column. Click on the investment of your choice and follow the steps to start investing.

Where can I find more information about the managed funds available?

You’ll find all the information you need at RaboDirect.com.au. Our online fund selector is packed with useful information to help you search, sort, select, compare, research and buy your preferred managed funds. Go to RaboDirect Managed Funds.

Where can I find more information about the Term Deposits available?

Use our comparison table to find the best rate and term to suit your investment needs and see how we compare with other banks. Click here

Can I invest in shares with RaboDirect Online SMSF?

You will still need to place your trades through your preferred stock broker, but you can pay for share purchases and receive any dividend payments into your RaboDirect Online SMSF High Interest Savings Account.

How do I invest in investments with other providers?

It’s easy to settle investments with RaboDirect Online SMSF using the ‘pay anyone’ facility. Simply login with your Digipass at RaboDirect.com.au, and follow the prompts to set up a new Payee and make the payment. You can also set up regular weekly, monthly and quarterly automatic payments too.

What’s the difference between DIY Super HISA and RaboDirect Online SMSF?

The difference is RaboDirect Online SMSF is designed for people who have not yet set up an SMSF. If you have an existing SMSF there is no need to apply for another but you can still benefit from all the great products that RaboDirect offers. DIY Super HISA does not have a pay anyone facility and 3rd party payments cannot be made, money can only be moved in and out of the RaboDirect account via the linked account.