How do I establish a self-managed superannuation fund?
First, you’ll need to seek advice from a financial advisor qualified to advise on superannuation matters. If they advise you to establish a self-managed superannuation fund (SMSF), you'll then need to create a trust deed. This is the legal document that sets out the rules for operating a SMSF and will outline whether the trustees will be individual members or a corporate trustee. Once completed, this document is submitted to the Australian Taxation Office (ATO), which will then grant the SMSF an Australian Business Number (ABN).
The trust deed must be prepared by a qualified legal professional to ensure that all legal obligations are met. Murfett Legal are experienced in preparing the required documentation and are always willing to assist you.
Can I put my super in a family trust?
Superannuation funds cannot be transferred directly into a family trust. Super funds are subject to specific legal and tax rules different from trusts. However, upon retirement or meeting a condition of release, you may draw from your super and then contribute to a trust, following legal and tax advice.
What kind of trust is appropriate for my needs?
Determining the appropriate type of trust depends on various factors, including your financial goals, family structure, and the nature of the assets involved.
The trust deed, which is the legal document outlining how the trust operates, plays a central role in defining the trust's structure and purpose.
Another consideration is the legal entity that will act as trustee. This could be an individual, such as a family member, or a corporate trustee, typically a private company. Each has its advantages and implications for control, liability, and succession planning.
We work with you to understand the specific nuances of your situation to ensure the trust setup aligns with your objectives and complies with legal requirements.
How are trusts taxed in Australia?
In Australia, trusts themselves are not typically taxed. Instead, beneficiaries of the trust are taxed on the income they receive from the trust, based on their individual tax rates. If income is retained in the trust, it is taxed at the top marginal tax rate. Special rules apply for minors and non-residents.
Does my trust need to lodge a tax return?
Yes, a trust usually needs to lodge an annual tax return, declaring all the income, deductions, and distributions. Even if there is no tax liability, the trust is required to file a return if it has a Tax File Number (TFN) or is registered with the ATO.
Is the ATO cracking down on trusts?
The ATO is increasingly scrutinising trusts to ensure compliance with tax laws. They focus on trusts that show signs of tax evasion, misuse for personal expenses, or incorrect distributions to beneficiaries. It's essential for trustees to maintain accurate records and ensure transparent and lawful management of trusts.
Can Murfett Legal assist with tax disputes?
Yes. As stated above, if you are the subject of a dispute with the ATO or are experiencing tax issues, we can help you.