Step 1

A Self-Managed Superannuation Fund (or SMSF)

An SMSF

You can read about setting up an SMSF through Cleardocs here.

You can order an SMSF here.

Step 2

An up-to-date Cleardocs SMSF deed

The SMSF should have a Cleardocs deed to ensure that it works with the Cleardocs SMSF borrowing package.

1. The Cleardocs deed must be from on or after 7 July 2010 (that is, version 11 or later) – that date matters as the law about SMSF borrowing changed that day and the Cleardocs deed was updated to reflect that change.
2. If the SMSF does not have a Cleardocs deed, you must seek legal advice to ensure that the deed permits the trustee to enter into the limited recourse borrowing arrangement and satisfies the lender's requirements.

1. You can check whether the SMSF has a Cleardocs deed by asking the person who arranged the deed for you.
2. If the SMSF has a Cleardocs deed, then you can check which version it has by:

• logging in at Cleardocs;
• clicking the blue button "MySMSFs" in the second row of buttons at the top of the home page;
• finding the relevant SMSF in the list; and
• viewing the light blue "Version X of Y" button in the second column headed "Version".

You can read about updating the deed to a Cleardocs deed here.

You can arrange for the SMSF to up-date to the latest version of the Cleardocs deed here. You can do that:

• even if the SMSF does not have a Cleardocs deed; and
• if the SMSF has an old Cleardocs deed.

Step 3

The trustee of the SMSF

Some lenders require the SMSF to have a company as its trustee.

This is a requirement of the banks. Other lenders may not require it. You should check with the lender.

If the SMSF has individuals as its trustee, then:

• if you need a new company to be the trustee, you can read about using Cleardocs to register a company here; and
• you can read about using the Cleardocs SMSF Change of Trustee document package to replace the SMSF's individual trustees with a company trustee here. To use that document package, the SMSF must have a Cleardocs deed — any version is acceptable. You can read about changing the SMSF's deed to a Cleardocs deed here.

You can order the document package:

• to update the SMSF's deed to a Cleardocs deed here;
• to register a new company to be the trustee here; and
• to change the SMSF's trustee to a company here.

Step 4

The trustee of the Declaration of Custody Trust

Often, the lender requires the trustee of the Declaration of Custody Trust (also known as a "Bare Trust") to be a company – you should check with the lender.

Importantly, if you do need a corporate trustee for the Declaration of Custody Trust, then that company must be a different company from the one that is the SMSF trustee.

If you need a new company, you can read about using Cleardocs to register a company here.

You can order the document package to register a new company to be the trustee of the Declaration of Custody Trust here.

Step 5

The SMSF borrowing document package — including the Declaration of Custody Trust (or Bare Trust)

You need to arrange a Declaration of Custody Trust (or Bare Trust) and some related documents.

Cleardocs has two separate SMSF borrowing packages:

• one for borrowing from a bank; and
• one for borrowing from a related party.

These documents set out the borrowing arrangement between:

• the lender;
• the SMSF trustee(s); and
• the Custodian — that is, the trustee of the Declaration of Custody Trust.

You can read about the document package:

• for borrowing from a bank here; and
• for borrowing from a related party here.

You can order the document package:

• for borrowing from a bank here; and
• for borrowing from a related party here.