Self Managed Superannuation Fund Definition
  • A self managed superannuation fund has less than five members;
  • Each individual trustee of the fund is a fund member;
  • Each member of the fund is a trustee;
  • No member of the fund is an employee of another member of the fund unless those members are related;
  • No trustee of the fund receives remuneration for his or her services as a trustee.

If the Trustee is a company;

  • Each director of the company is a member of the fund;
  • Each member of the fund is a director of the company; and
  • No member is an employee of another member (unless related);
  • The trustee does not receive remuneration for its services as a trustee.

A single member self managed superannuation fund may have a company as trustee if the member is;

  • The sole director of the trustee company; or
  • Be related to the other director of the trustee company and there are only two directors of that company; or
  • Not be an employee of the other director of the trustee company and there are two directors of that company.

If the single member fund trustee is not incorporated the fund must have two individuals as trustees where the non member trustee is:

  • Another person who is a relative of the member;
  • Any other person provided the member is not an employee of that person.

Generally anyone over the age of 18 can be a trustee of a superannuation fund except if they are a disqualified person.

An individual is a disqualified person if:

  • at any time the person has been convicted of an offence involving dishonesty, or
  • at any time the person has been subject to a civil penalty order under SIS, or
  • the person is an undischarged bankrupt.

A company would not be permitted to act as trustee if:

  • a responsible officer of that company is a disqualified person (a responsible person includes a director, secretary or executive officer); or
  • a receiver, official manager, or provisional liquidator has been appointed to the company; or
  • action has commenced to wind up the company

The requirements that all members be trustees ensures each member is fully involved in the decision making processes and proper management of the Fund, making sure of standards compliance, acting honestly and prudently in the best interests of all members while applying the same care, skill and diligence as if entrusted with the property of another.

As the Fund assets are beneficially the members and dependants, then who better to act as the Trustee than the members or a company controlled by the members?

Members of the same Fund may fit into different categories, that is, one member may be in accumulation mode while another is receiving a fund pension/s. One may be self employed while another is an employee.

Cavendish will assist on all matters pertaining to Trusteeship and provide all establishment documentation including Trust Deed, applications, minutes and negotiate the roll over of previous Fund assets.

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