SMSF Borrowing guide
Thank you for considering using Cleardocs to arrange your SMSF borrowing documents.
By using Cleardocs to arrange your SMSF borrowing documents, you get the benefit of:
- ensuring your SMSF deed is compliant with current superannuation law;
- a complete supplement package to the lender's transaction documents;
- documents that are tailored to meet the requirements of your particular bank or lender; and
- documents that are signed off by our lawyers at Maddocks. Our relationship with Maddocks allows you to utilise the free legal helpline we arrange through Maddocks and to use extra services of Maddocks to adjust your borrowing documents to suit particular circumstances.
Step by step guide to SMSF borrowing You can use the information below to work out how to arrange the documents for SMSF borrowing through Cleardocs.
The table below explains the full requirements — in summary, here's what you need:
- Step 1: an SMSF;
- Step 2: the SMSF needs a deed with suitable borrowing provisions;
- Step 3: sometimes, the SMSF needs a company as its trustee — check with the lender;
- Step 4: usually, the Declaration of Custody Trust (also known as a Bare trust) for the SMSF borrowing needs a company as its trustee — check with the lender. That company must be a different company from the one that is the SMSF trustee — so you may need two companies; and
- Step 5: an SMSF borrowing document package which includes the Declaration of Custody Trust.
Step |
What do you need? |
Where is there more information? |
Solution: How to complete this step |
How much will it cost? |
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Step 1 |
A Self-Managed Superannuation Fund (or SMSF) |
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An SMSF |
You can read about setting up an SMSF through Cleardocs here. |
You can order an SMSF here. |
SMSF set up
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Step 2 |
An up-to-date Cleardocs SMSF deed |
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The SMSF should have a Cleardocs deed to ensure that it works with the Cleardocs SMSF borrowing package.
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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:
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SMSF deed update
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Step 3 |
The trustee of the SMSF |
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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:
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You can order the document package: |
SMSF deed update
Company registration
Change of SMSF Trustee
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Step 4 |
The trustee of the Declaration of Custody Trust |
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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. |
Company registration
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Step 5 |
The SMSF borrowing document package — including the Declaration of Custody Trust (or Bare Trust) |
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You need to arrange a Declaration of Custody Trust (or Bare Trust) and some related documents. Cleardocs has two separate SMSF borrowing packages:
These documents set out the borrowing arrangement between:
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You can read about the document package: |
You can order the document package: |
SMSF borrowing from a bank
SMSF borrowing from a related party
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Any questions?
If you have any questions:
- about how to use Cleardocs, contact the Cleardocs helpdesk on 1300 307 343.
- about legal issues, contact the Cleardocs helpdesk on 1300 307 343. If you need advice, we will arrange for you to speak to a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.
Thank you for using Cleardocs.