Can my wife and I combine our super? Who can set up an SMSF together?

Almost anyone can set up an SMSF together. SMSFs can have up to six members. Usually they are all in the same family and the most common combination is you and your spouse/partner or just you if you are single.

A few things to remember when you belong to an SMSF with other people: 

• All members are generally also trustees. That means you will be sharing the responsibilities of running an SMSF and all decision-making. In the extreme, you could stop each other making the investments you want to make with your superannuation money – while you can choose different investments within the same fund, you can’t operate completely independently. 
  
  
• If you want to change things later and have separate funds, someone will have to transfer out. That means assets will need to be sold or transferred to a new fund. This will potentially have capital gains tax and stamp duty consequences. 

Can I be in business with someone else in the fund? 

There is no rule against this and in fact it’s reasonably common. There is just one thing to be aware of : no member of the fund can be an employee of another member unless they are relatives. It’s acceptable if the two people are both directors of the company which owns the business but not if one is a director and the other isn't. This would only be permitted if the two people were relatives. It’s a good idea to get advice if you think your SMSF might not meet this rule. 

Can my children belong to my SMSF?

Absolutely – regardless of how old they are. If the child is under 18, however, they can’t be a trustee. Generally, their parent(s) would be trustees on their behalf. Conversely, if the child is over 18, they must be a trustee unless they’ve specifically agreed to have someone else do it in their place by granting them an enduring power of attorney.