SMSF - How to Create

SMSF - How to Create

To set up an SMSF, you need to first set up superannuation accounts, as per the section "Understanding the Super Section" "Superannuation Accounts".


Once you have established your Member's Superannuation Accounts, you will need to create the SMSF.


To create the SMSF:


1.   Click on the SMSF & Trust Module from the Module Menu.


2.   Click on the blue CREATE NEW SMSF button, which opens the Add SMSF Source screen.


3.   Enter the name of the SMSF.



4.   Click the blue ADD button.



When you click the blue ADD  button, a Transaction Account will automatically be created for the new SMSF.  You can check this by going to the Accounts module, and there will be an account there called "SMSF Cash Account".  This is the bank account for the SMSF, and all SMSF income will flow into this account, and all expenditure in relation to the SMSF will be funded from this account. 


You will need to enter the account balance for the SMSF.  This balance for the SMSF Cash Account will be either:

  • the value of the member's superannuation funds, if it is a new SMSF without any other assets, OR
  • if there are other assets held by the SMSF (such as an investment property or shares), the value of the SMSF Cash Account will be the difference between the total balance of the Member Superannuation balances and the value of the property / other investment assets.
Example 1 (if SMSF is new, with no assets held):
 
                  Fred's Super Fund Balance (Member Account):          $ 150,000
                  Wilma's Super Fund Balance (Member Account):        $  50,000
                  Total SMSF Cash Account Balance:                              $ 200,000

  Example 2 (SMSF exists, with investment property asset):

                  Fred's Super Fund Balance (Member Account):            $150,000
                  Wilma's Super Fund Balance (Member Account):          $  50,000
                  SMSF Balance:                                                                  $200,000

Assets and Liabilities in SMSF:

SMSF Investment Property                          $ 500,000
SMSF Loan on Investment Property            $-350,000
SMSF Managed Fund Investment                $   30,000
SMSF Cash Account                                      $   20,000

NET SMSF Assets                                          $ 200,000
         
At this stage there is no need to worry about the "Conditional Transfer" fields.


You will now need to link the SMSF to the relevant Superannuation Account AND the Pension Account in the Superannuation module.  


Link the SMSF to your Member Superannuation and Pension Accounts



To link the SMSF to your Superannuation Accounts

  1. Click on 'Super' in the Module Menu (to the left of your screen)
  2. Select the Member Superannuation account to be held within the SMSF entity
  3. You will now see the Associated SMSF entry field, third entry in the left-hand column (as shown above)
  4. Click on the dropdown menu and select the SMSF
  5. Click the blue UPDATE button to the bottom left of the screen  


You will also need to link the SMSF to any Pension accounts


  1. Click on 'Super' in the Module Menu (to the left of your screen)
  2. Select the Member Pension account to be held within the SMSF entity
  3. You will see the Associated SMSF entry field; third entry in the left-hand column (as shown below)
  4. Click on the dropdown menu and select the SMSF
  5. Click the blue UPDATE button to the bottom left of the screen to save.





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