A superannuation fund is a tax structure (like a company, trust or partnership) but one that has a specific purpose – it is designed to be used to save for retirement. An SMSF is simply a special type of superannuation fund. The difference between an SMSF and other types of superannuation funds is that generally, SMSF members (trustees) are also the people in charge of the fund. This means that if you choose to have an SMSF, you and your fellow trustees have complete control over how it is run, what investments are made and what other suppliers such as administrators, insurance companies etc. it uses.

Visit our Knowledge Centre to learn more about SMSFs.

For most Australians, superannuation is one of the largest assets we hold and naturally we want to control it. As a trustee of an SMSF you have full control over your SMSF.There are many benefits of an SMSF with the main ones being control, cost effectiveness, investment choice, tax benefits, borrowing and portability.

Visit the Knowledge Centre to learn more about the advantages of SMSFs.

SMSFs are just one example of a special type of legal entity known as a “trust” and all trusts have “trustees” (the people who are in charge). The trustees of your SMSF can be a group of individuals or you can set up a company to be the trustee. If you set up a company, the people in charge will be the directors of that company.

We recommend all SMSFs set up a company to be the trustee for many reasons but largely because it is simpler and gives you better protection and control when things in the SMSF change. Things can change for many reasons - a member might die, suffer from an illness like dementia or accident that means they are no longer allowed to make decisions or a new member might join. These are dealt with far more easily when the trustee is a company.

Learn more about the different trustee types in our  Knowledge Centre.

There is no specific amount you need to commence an SMSF, however, generally, the lower the balance of an SMSF the less cost effective they tend to be. SMSFs typically have a fixed administration cost meaning the larger the fund’s balance the less the fixed expenses are as a proportion of the fund. Remember the fund balance can be made up of total super savings of up to four members.

If your employer is going to contribute to your SMSF, you’ll need to give them two documents:

1. A completed "Superannuation (super) standard choice form". If your fund was set-up by Heffron this was included in your Welcome Pack. If you join a new employer after your SMSF has already been established, you can simply complete another form. To complete another form you will require your personal details and details of the super fund.
2. A document confirming the fund is recognised by the Australian Taxation Office as a "regulated" fund. You can locate and print a copy of your fund's status by searching your Fund's ABN or name in the Super Fund Lookup service.

Learn more about setting up an SMSF in our Knowledge Centre.

Trustees are the people who are legally in charge of the fund. Some people are specifically not allowed to be a trustee. This includes people who:

• have ever been convicted of an offence involving dishonesty
• have ever been subject to a civil penalty order imposed by superannuation law
• are considered insolvent under administration
• are an undischarged bankrupt
• have been disqualified by a regulator e.g. ATO or APRA

There are certain circumstances where you can’t be a trustee but someone else is allowed to do it for you. Under these circumstances, you can still have an SMSF. This is possible, if:

• You are under 18 and your parents are the trustee for you
• You are disabled and have someone who has been legally appointed to manage your affairs
• You have given someone an “enduring power of attorney” (a legal document that allows them to act on your behalf in a number of ways, including being the trustee of your SMSF).

Visit the Knowledge Centre to find more information for and about trustees.

Technically, yes. However just because you can, it doesn't mean it is a good idea to do so. Using a company for multiple purposes is fraught with risk.

There are stringent regulation requirements around self-managed super funds, there cannot be any overlap between SMSF funds and other company funds. In some situations, if your company gets into financial difficulty or is subject to litigation through its other trading activities your SMSF assets could be at risk. There are also potential issues associated with identifying the owner of the assets and with registering charges over your company.

For the cost of registering a new company, it is not worth the risk of endangering your complying SMSF status.

The best practice is to register it as a special purpose SMSF company. A special-purpose SMSF company is one that only acts as trustee of an SMSF.

When you first set up an SMSF you might have money in another superannuation fund that you want to transfer to your SMSF. This type of transfer is called a "rollover."

If you're going to close your old super account and move it all to your SMSF, you will be required to contact the institution and request a rollover/transfer from. The transfer can occur electronically to the nominated bank account or via cheque (if a rollover is sent by cheque Heffron will receive the rollover statement and cheque and forward the documents to the client)

You will be required to provide the following details:

• SMSF Name
• ABN Number
• USI Number- not applicable to SMSF'S (leave the section blank)
• SPIN Code- not applicable to SMSF'S (leave the section blank)
• Member Number - SMSF'S generally do not have a member number however should you wish to list a number in that section you can list number 1

Learn more about setting up an SMSF in our Knowledge Centre.

There is no legislative requirement to have the deed updated however we do recommend clients review their trust deed every 3 to 5 years.

Technical Support is any technical query relating to the super fund, some examples are:

• Compliance with law and legislation
• Strategy
• Contributions
• Investments

When you purchase Heffron's technical support package you get access to market leading SMSF experts who can clarify legislation, provide you with SMSF strategies or simply act as a sounding board.

SMSFs are required to receive employer superannuation contributions using the Government’s SuperStream Data and Payment Standard (the Standard). The Standard is part of the Government’s Stronger Super initiative and introduces a streamlined method of sending superannuation payments and associated information electronically.

To comply, every SMSF that receives employer contributions will need an Electronic Service Address (ESA) that is supplied to employers. To help you comply we have selected SMSF DataFlow, a free, open and portable SuperStream electronic messaging service as our preferred solution. The ESA for this service is: smsfdataflow

The investment will have to be compliants with the SIS act and permitted by the deed rules of the fund, in line with the overall investment strategy of the fund.

All investments by your SMSF must be made on a commercial 'arms-length' basis. The purchase and sale price of fund assets should always reflect true market value and the income from fund assets should always reflect a true market rate of return.

Generally: - you can't buy assets from, or lend money to, fund members or other related parties (there are some exceptions to this rule) - your fund can't borrow money

Rules about investing in SMSFs are available in our Knowledge Centre. Additional information can be found on the ATO website.

If you are going to contribute to your SMSF, you simply deposit the money in your fund's bank account. There are no forms to complete. You can arrange for your contributions to be made via regular payments or once-off amounts - whatever suits you best.

If you're going to claim a personal tax deduction for some or all of your contributions, just let Heffron know. We will complete the right ATO forms and send them to you. You'll need these before you lodge your personal tax return.

Learn more about contributions in our Knowledge Centre.

To add/remove a trustee or a member you will be required to complete our Changes to Fund Associates form. We will prepare the necessary documents that will need to be executed by the members of the super fund. More information can be found in the Document Services section.

Heffron's flagship online portal offers clients online lodgement tracking, access to fund information, digital documents, direct communication with Heffron staff and much more.

You can access Heffron's Online Portal Maestro by logging in here.

Visit our Knowledge Centre to learn more about Heffron's Online Portal Maestro.

Heffron administration is billed monthly via direct debit from your nominated cash account. All other Heffron services are billed at the time you purchase the product or service.

If you have any questions about billing, please contact Heffron to speak with our finance team.

One of the main reasons Heffron began using electronic signatures was to remove the long delays that inevitably occur when a large package of documents is posted and needs to be returned. We have the uncertain timelines of Australia Post and the documents never arrive in the pristine state in which they left our office. Further, we are subject to the “kitchen bench effect” which we are all guilty of, opening a pack of documents that require action and parking them on the kitchen bench until we find them months later!

Visit the Knowledge Centre to learn how to sign documents electronically.

A Limited Power of Attorney is a legal document that enables Heffron to undertake very specific functions relating to your SMSF on your behalf. Heffron's authority is very limited and does not include the ability to buy or sell investments on your behalf.

Visit Heffron IQ to learn more about Limited Power of Attorney.

Once Heffron has received your application, we will start setting up the fund. You will receive a fund establishment pack by post for you to review and sign. The establishment pack includes all documents needed to establish your SMSF. It comes clearly marked by explaining what you need to do and shows where you need to sign and date. We aim to have the fund establishment pack issued in less than four business days from the time we receive all correct information from you.

After receiving the signed documents, we will conduct a final review of the executed documents to make sure they have been signed, dated and witnessed in all the correct places.

If everything is correct we will register the fund with the ATO on your behalf. The ATO will allocate a tax file number (TFN) and an Australian Business Number (ABN) to your fund. This may take up to 28 days, however, in our experience, it is generally quicker.

You can contact Heffron at any point of this process to check on how the set up is progressing.

Transferring your fund to Heffron is quick and easy. You will need to complete a Heffron Transfer Form and return it to Heffron.

Learn more about transitioning to Heffron.

Our preference is for the payment to be made via credit/debit card when the application form is submitted. In certain circumstances we will allow for the payment to be taken out from the bank account when the fund has been established.

Please contact us if you have any queries.

A data feed is a secure electronic transmission of account transaction data from a financial institution directly into the SMSF Accounting Software. Data feeds allow Heffron to process your fund regularly and ensure your fund is always up to date. They also remove the administrative burden from you in providing all transactional data to Heffron directly.

Visit the Knowledge Centre to learn more about the benefits of data feeds. 

Heffron's preferred software platform is Class Super. We can provide you with Class access in order to view your investment portfolio. Contact Heffron to get access to your fund's financial information.