Private Self Managed Superannuation Fund

Introduction A Private Self Managed Superannuation Fund allows you the ultimate say on how your funds are invested or spent provided you keep within the legislative requirements. If an opportunity presents itself you can take it. It is essential that the fund is properly administered. We recommend that you only consider this type of fund where you have accumulations in excess or $150,000, which are likely to have significant growth in contributions, in order to recoup the costs of establishment and the administration costs. However the flexibility it offers can afford you opportunities that are not available in industry and financial market funds. In Australia, your employer is required to pay into your superannuation fund an amount equal to at least 9% of your ordinary earnings, and most employers will allow you to top that figure up from your pretax earnings subject to certain limits. With the tax incentive to make contributions it makes sense that this is one of the first things you should consider in building your family’s financial security. How It Works Establishing the Fund The trustee will be the trustee of the Fund which, under superannuation law, is a Self Managed Superannuation Fund regulated by the Australian Taxation Office. A person is not eligible for appointment as a trustee of a superannuation fund or as a director of a corporate trustee unless that person has consented in writing to the appointment and is not a disqualified person. Therefore, each person should sign the Consent and Declaration forms before the Trust Deed is executed. The trustees should then pass resolutions along the lines of the enclosed drafts before executing the Deed by signing and dating as indicated. The draft resolutions we provide may need to be changed in order to accurately record the actual resolutions that are passed. Important Features A member, or a member's employer, may contribute to the Fund, provided the Trustee agrees. Also, amounts may be transferred into the Fund from other complying superannuation funds. Amounts contributed and transferred in, are allocated to individual member’s accounts, where investment earnings are added and expenses (tax, administration fees etc.) are deducted. The accumulated balance represents the member's benefit which is payable when a member retires from the workforce, having reached the statutory preservation age, or commences a pension under the “Transition to Retirement” provisions. Benefits are also payable before retirement in the event of death or total permanent disablement, and, subject to certain conditions, on total temporary incapacity. ABN & TFN Application, and Election to be Regulated

We will apply for an Australian Business Number and a Tax File Number for the Fund (see copies of application enclosed). For a superannuation fund to be eligible for the tax concessions the Trustees must make an irrevocable election for the fund to be regulated under the Superannuation Industry (Supervision) Act 1993. This election is incorporated in the ABN & TFN Application. Investment Strategy The Trustees must formulate and document an investment strategy for the fund. This strategy would have regard to all of the circumstances of the fund from the perspective of risk, return, diversity and liquidity. We will assist you with the appropriate documentation and we will enclose a draft pro-forma as a starting point. Please note that we are prevented by law from providing any advice about any individual investments or investment strategies - this will be a function of your appointed financial advisers and accountants. Administration We will provide certain advice and assistance to the Trustee, and will undertake all the administrative and secretarial duties relating to the operation of the Fund, including record keeping and the preparation of the books of account and annual taxation returns. Working Account It is necessary to establish and maintain an appropriate bank account for the fund. We use a Cash Management Trust because of its administrative efficiency and functionality, interest calculated daily and paid quarterly on the entire account balance, and zero bank or account keeping fees. This account will be used to receive any transfers and contributions initially, pending reinvestment or asset purchase. Also, administration fees, taxes, charges, disbursements and other expenses will be drawn from it. Under Anti Money Laundering legislation, we may be required to verify the identification of account holders. Read more managed_Superannuation_Fund.html

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