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What are the conditions of a SMSF according to the SIS?Speaking generally, for an SMSF to be complying:
There are some limited exceptions to numbers 2 and 3 above. Can fund members be non-Australian residents?Yes fund members can be non Australian residents. However, there will likely be serious tax consequences if all members of the SMSF reside overseas for an extended time. Can a member be under a "legal disability" and still be a member?Yes a member can be under a "legal disability" (other than on account of them being younger than 18) as long as the legal personal representative of the disabled member is a fund trustee. If the trustee is a company, then the legal personal representative must be a director of that company. Can a member be less than 18 years old?Yes a person who is under 18 can be a member of an SMSF which has individual trustees. If the member does not have a legal personal representative, then the member's parent or guardian must be a trustee of the fund on behalf of the member. Can I have a corporate trustee and a member who is not 18 years of age?The law does not allow an under 18 member for a SMSF with a corporate trustee. This is because the Superannuation Industry (Supervision) Act 1993 (SIS Act) requires:
However, according to the SIS Act, if a member of a fund is under 18 and does not have a legal personal representative, then the minor may be a member provided that the parent or guardian of the minor is a trustee of the fund in place of the minor. What are the conditions of single member SMSF funds according to the SIS?Speaking generally, for an SMSF has only one member, then the SIS Act requires that:
Remember, the law says that trustees of an SMSF cannot receive payment from the SMSF for duties or services performed in relation to the SMSF. If the trustee is a company, then is it automatically the Principal Employer or Employer Sponsor?No it depends on what the relevant trust deed says. What happens if the nominee of a Death Benefit Nomination dies?If someone nominated to receive a death benefit dies before the nominator, then the nomination is cancelled and has no effect. What happens if the nominee of a Death Benefit Nomination dies at the same time (say, in a car accident) as the nominator?In these circumstances, the law says that the oldest person is taken to have died first. If more than two persons die simultaneously then they are taken to have died in the order from oldest to youngest. So, if the nomination:
What happens if all the trustees (directors of the trustee) die at the same time (say, in a car crash)?In these circumstances, the law says that the oldest person is taken to have died first. If more than two persons die simultaneously then they are taken to have died in the order from oldest to youngest. Concerning what happens if the trustees (directors of the trustee) have nominated each other in their death benefit nominations, then see the answer directly above. After a trustee dies, their legal personal representative may act as either a trustee of the fund or as a director of a body corporate that is the trustee of the fund. So if all the trustees (or directors of the trustee) die at the same time, then the SMSF remains an SMSF until the death benefits are paid. At this point, the legal personal representative must cease to be a trustee and the fund will have to satisfy the basic conditions in order to continue as a SMSF - that is other members must have joined and become trustees. Does the SMSF have to apply for an ABN?Yes. The SMSF will obtain an ABN as part of registering with the ATO and choosing to become a regulated superannuation fund. The trustee(s) needs to complete and sign the "Application to Register for the New Tax System - Superannuation Entities" form. This can be downloaded from http://www.ato.gov.au/
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