Welcome to Western Suburb Accountants !!


Frequently Asked Questions

Whether this is your first time working with WS Accountants, you might have a few questions about working with us. We have compiled a list of frequently asked questions to assist you.


What is an SMSF or Do-It-Yourself (DIY) superannuation fund?

DIY superannuation fund is an informal name for a Self-Managed Superannuation Fund (SMSF). Self Managed Super Fund is a superannuation fund that is regulated by the Australian Taxation Office (ATO) and all members of the fund must be trustees of the fund. There are exceptions to this rule, such as, a member who is a minor, or, one who is under legal disability. In such cases, regulatory provisions state that a member of the SMSF cannot be the trustee of the fund.

What is the definition of an SMSF Member?

A member is a person who has contributions made for them or who receives benefits from the fund. In retirement, a member has the option of receiving either lump-sum payment or a pension, or a combination of both.

What is the definition of an SMSF Trustee?

A trustee is a person or a legal entity (corporate trustee) responsible for ensuring the fund is properly managed as set out under the Superannuation Industry Supervision Act 1993 (SIS) and all other relevant laws are observed. A SMSF can also have a company as a trustee if each director of the company is a member of the fund. Note: anyone over the age of 18 can be a trustee of a superannuation fund unless they are a "disqualified person" under SISA. An individual is a "disqualified person" if: at any time, the person was convicted of an offense involving dishonesty; or at any time, the person has been subject to a civil penalty order under SISA; or the person is an insolvent under administration (e.g. an undischarged bankrupt). Please notify your service provider before you establish your fund if any applicant for the membership of the fund is a "disqualified person"!

How many different types of SMSF are there?

here are two types of regulated SMSFs. The most common type is usually called "More Than One Member Fund" or "Multiple Member Fund", with a corporate or non-corporate trustee; the other being a "Single Member Fund", again with a corporate or non-corporate trustee.

What are the advantages of an SMSF?

✓ SMSF gives members unique control of their investments within the legal framework
✓ Maximum tax payable on earnings is 15 percent
✓ The tax is payable in the year a gain is realised
✓ SMSFs allow control of the timing for asset disposal, meaning that realisation of gains can be deferred until such time that assets are supporting an Account Based Pension, when the income is taxed at 0%
✓ SMSF is a prerequisite for an Account Based Pension
✓ SMSFs can invest up to 100% of the fund's total assets in "Business Real Property"

Why is SMSF Planning Important?

because, SMSF are a great instrument for providing you withgreater control over your retirement funds.

Is establishment of a SMSF a tax-deductible expense (payable by the superannuation fund)?

No, establishment of an SMSF is an expense of a capital nature!

Can I add members after the fund is already setup? Or do they have to be named when you setup the fund?

You can add members after the fund is setup, however, the fund must have less than five members in total.

Does an SMSF operate like a regular super fund except that I have more control?

SMSF operates exactly as any other super fund, but you have 100% control over it, i.e. you as the Trustee are responsible for how the fund operates, how the money invested, types of investments etc.

Do I have to operate a company or small business before I can setup my SMSF?


Does SMSF have to be resident in Australia?

Resident SMSF receives concessional tax treatment (maximum tax payable on earning is 15%). A non-resident fund is subject to 47% tax on the fund assets.

Can I have my superannuation monies in more than one fund such as an SMSF, in some other types of a fund?

Yes. You can spread your superannuation between funds of your choosing.

Can SMSF invest in share market, derivatives or real estate??

Yes, subject to certain conditions.

What if I want to close down the SMSF?

You can wind down the SMSF and transfer you Super balance to a retail fund or another SMSF. Or you can transfer your SMSF to another administrator or accountant (we work hard to make sure you don’t). As you are the Trustees responsible for the SMSF, the choice how to administer the Fund and who to use as service provider rest with you.

Is my money safe?

Yes. We don’t handle your funds. As the Trustee of your Fund, you control your own funds and decide where to invest.