To knowingly act as a trustee, a trustee director or an office holder of a corporate trustee such as secretary , while being a disqualified person, is an offence. Have you ever been convicted of a dishonest offence, in any state, territory or a foreign country? Offences of a dishonest conduct are things such as fraud, theft, illegal activity or dealings. Have you ever been issued with a civil penalty order? Civil penalty orders are imposed when an individual contravenes a civil penalty provision this can be an order to pay a fine or serve jail time.
Although care has been exercised in compiling the information contained within, Modoras Pty. To the extent permissible by law, neither Modoras Pty. Who can be a member of an SMSF? Published by:. Published on:. Who can be a member? Becoming a member of an SMSF relies on a person meeting several personal and legal factors. Does a member have to be a trustee? In short, yes. Recent Searches You have no recent searches Requirements for SMSF trustees.
Who can be an SMSF member? Essentially anyone can be a member of an SMSF provided they: are not an employee of another member unless they are related to them, and are not a 'disqualified person'.
A disqualified person is someone who: is disqualified by the Australian Taxation Office or the Australian Prudential Regulation Authority from acting as trustee of a superannuation fund is an undischarged bankrupt, or has been convicted of an offence for dishonest conduct arising out of a law of the Commonwealth, State, Territory or foreign government, such as fraud.
The trustee options and eligibility rules. Who can be an individual trustee? You can be an individual trustee if you are a member of the fund and so long as you are not a 'disqualified person' and are not: a minor ie a child under 18 years of age where you will need a parent who may also be a member of the fund , a guardian or a Legal Personal Representative to act as trustee on your behalf, or a person with a mental or physical incapacity which prevents you from acting as trustee, where you will need another person who holds an 'enduring power of attorney' to act as trustee for you.
Which companies can be a corporate trustee? Most companies can be used as a corporate trustee provided: a director, executive, secretary or other 'responsible officer' is not a 'disqualified person' all directors are members, a receiver, official manager or provisional liquidator has not been appointed, or action has not commenced to wind-up the company.
What are the benefits of having a corporate trustee? A corporate trustee can offer a number of benefits including: Less cost and effort when membership changes. With individual trustees, the title to the fund's assets needs to be transferred into the new trustees' names when a member joins or leaves the fund.
Conversely, with a corporate trustee, the company holds legal title to all the fund's assets, so no transfer of names is required when members are added or removed.
Greater protection from litigation. There is usually no limit on the number of members that public super funds can have other than a small APRA fund explained later in this article.
Public fund members are also eligible for a government compensation scheme in the event of trustee misconduct or fraud.
SMSF members on the other hand must resolve their own disputes, using legal avenues if necessary. A super wrap is an account that is a hybrid of some of the characteristics of a public super fund and an SMSF.
Wrap accounts are the response of public funds to the growth of SMSFs. People with a super wrap are therefore not responsible for its ongoing administration and legal compliance.
SMSF members have access to a wider range of potential investment assets, such direct investment in residential or commercial property and collectables, which are not available to people with a super wrap. A small APRA fund allows investors to have greater control of their super investments than they can get with a typical public fund, without needing to become a trustee. An SMSF is a private super fund you manage yourself, giving you more control over how your retirement savings are invested.
However, setting up an SMSF is a big decision that comes with ongoing legal compliance responsibilities, which can be costly and time-consuming. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement PDS or seek personal financial advice before making any investment decisions.
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Learn more about SuperGuide. How does an SMSF work?
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