How does an SMSF work?
Super funds are established for the sole purpose of presenting financial benefits to contributors in retirement and their beneficiaries. All members have their own TFN (Tax File Number), ABN (Australian Business Number) and bank account, which lets them to receive rollovers & contributions, pay out pensions and make investments. All SMSF investments are controlled by trustees and made in the name of the fund. An SMSF fund requires a trustee as a trust. There are 2 kind of trustee structure options available:
Individual – each member is appointed as a trustee. Minimum of two trustees are required.
Corporate – a company acts as the trustee and each member is a director. This structure provids flexibility in membership and administration efficiencies, at the same time it also allows simpler registration and recording of assets.