SMSF - Minute to Appoint Administrator

Resolution to Appoint an Administrator

What is a SMSF?

A SMSF is a special purpose trust into which individuals and employers can pay a person’s superannuation. It has particular tax and asset protection status under Australian law that is designed to encourage people to save for their retirement. The fundamental rules that apply to a SMSF are no different to those that apply to large public offered or Government superannuation schemes. The essential difference is expressed in its name; self managed superannuation fund. It is an investment structure that is operated by its members.

A SMSF consists of 1 to 4 members, all of whom are trustees of the Fund or are directors of a company that acts as the trustee. Even though a SMSF is operated by its members, you may require assistance from an Accountant or Adviser for the administration of the Fund. You will also need to have the Fund’s financial accounts audited each year.

Why do I need these minutes?

It is best practice to formally appoint an administrator to manage your superannuation fund. These Minutes achieve that. They are in line with the ATO's desire for proper compliance.

What is an administrator?

An administrator is a company specialising in the administrative and compliance functions of a self managed superannuation fund.

Why would I appoint an administrator when I can run the fund myself?

Yes you could run a self managed superannuation fund all by yourself. However, the role and responsibilities of Trustees should not be taken on lightly. You should ensure you are aware of your role and responsibilities as a Trustee but to assist you in maintaining the Fund’s regulatory compliance, you may like to appoint a specialist SMSF administrator.

If you appoint a specialist administrator to take over then they should help to ensure that all the regulatory requirements of your fund are met. You should not have to worry about deadlines or forms, leaving you to concentrate on investment decisions and family matters.

WARNING

If you fail to keep a record of minutes the Tax Office may state your fund is non-complying. A non compliant fund is not entitled to any tax concessions and is taxed at the highest marginal tax rate.

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Fund Name
• The Name of your SMSF
• What is the purpose of this Minute?
• What is an administrator?
• Why would I appoint an administrator when I can run the fund myself?
• What will I get after I purchase this Minute?
• Do anything else after this Minute is completed?
• Who is allowed to prepare these Minutes?
Trustee Type
• Why do you need to know this?
Company Trustee
• What is an ACN?
• What if I don't know the company ACN?
• Who are the directors of the company?
• What if I have less or more than four directors?
Individual Trustees
• What is the minimum number of trustees?
• What if it is a single member fund?
• What if I have more than 4 members?
• What if I have more than 4 trustees?
Current Administrator
• Why do you want to know this?
Current Administrator Details
• Who is the outgoing administrator?
New Administrator
• Who is the new administrator?
• Who should I appoint as the administrator?
Meeting Place
• What is a meeting address?
• Does the meeting need to take place anywhere in particular?

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Fund Name

• The Name of your SMSF

  Please put down the name of your Self Managed Super Fund.
  
  For example:
  
  George Smith Superannuation Fund
  

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• What is the purpose of this Minute?

  The purpose of this Minute is to appoint an administrator for your Self Managed Superannuation Fund.

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• What is an administrator?

  An administrator is a company or person specialising in the administrative and compliance functions of a Self Managed Super Fund.
  
  They help you manage the fund and ensure that your fund complies with the superannuation regulations.

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• Why would I appoint an administrator when I can run the fund myself?

  Yes you could run a Self Managed Super Fund all by yourself. However, the role and responsibilities of Trustees should not be taken on lightly. You should ensure that each trustee is aware of their role and responsibility as Trustee. Indeed the law requires each trustee to sign a declaration in the approved form that they understand the duties of a self managed super fund trustee. The declaration must be signed within 21 days of becoming a trustee. It must also be kept for at least 10 years and be available if an officer of the ATO asks for it. Failure to sign and hold the declaration is a strict liability offence.
  
  An administrator appointed by you can assist in ensuring that you meet the minimum obligations for running your fund.
  
  Remember tax concessions are dependent on the fund being compliant with the superannuation principles.
  
  If you appoint a specialist administrator to take over then they should help to ensure that all the regulatory requirements of your fund are met. They can attend to the regulatory requirements such as deadlines or forms, leaving you to concentrate on investment decisions or other key matters.

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• What will I get after I purchase this Minute?

  You receive the formal Minutes appointing an administrator for your Self Managed Super Fund.
  
  All you then need to do is get the Trustee to sign the Minutes and put the Minutes in your file. This minute will provide evidence of the Trustee seeking to ensure that their fund complies with the usual and normal administration required of a self managed super fund.
  

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• Do anything else after this Minute is completed?

  You do not need to lodge these Minutes with any government body. All you need to do is get the Trustee to sign the Minutes and put the Minutes in your file. Then notify the administrator of the appointment and assist them with any issues.

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• Who is allowed to prepare these Minutes?

  Anyone is allowed to prepare these Minutes.
  
  However, the trustees of the Self Managed Super Fund approve (ie. sign) the Minutes.
  

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Trustee Type

• Why do you need to know this?

  You can have your company as Trustee of your Self Managed Super Fund. Or, you may have kept it simple and just had all the members as Trustees.
  
  It makes no difference to the Minutes.
  
  Just let us know by answering the question:
  
  "yes" I have a company
  "no" just us the members (humans are the trustees)

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Company Trustee

• What is an ACN?

  An ACN is an "Australian Company Number" this is a special unique number identifying the company.

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• What if I don't know the company ACN?

  You can do a free simple search at www.asic.gov.au by typing your company name.

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• Who are the directors of the company?

  The Directors are the people that control the company. Each Director of the company must also be a member of the Self Managed Super Fund. The number of Directors is limited to a maximum of four people.

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• What if I have less or more than four directors?

  If you have less than four directors then leave the other sections blank.
  
  If you have more than four directors you are no longer a Self Managed Super Fund. This minute is only suitable for Self Managed Super Funds. Other funds have separate rules.
  

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Individual Trustees

• What is the minimum number of trustees?

  You must have at least 2 trustees to oversee a Self Managed Super Fund.

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• What if it is a single member fund?

  There must still be at least 2 trustees. One of the Trustees is the member. Any person can be the other trustee provided that the person is not an employer of the member. If they are an employer they may be the other trustee only if they are a relative of the member.

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• What if I have more than 4 members?

  If you have more than 4 members then the fund is not a Self Managed Super Fund. Different regulatory requirements apply to other funds. This Minute is only suitable for Self Managed Super Fund.

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• What if I have more than 4 trustees?

  If you have more than 4 trustees then your fund is not a Self Managed Super Fund. Different regulatory requirements apply to other funds. This Minute is only suitable for Self Managed Super Fund.

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Current Administrator

• Why do you want to know this?

  Your new administrator can help to ensure that everything is being done right. So if you do have an administrator then select
  
  "yes" I do have an administrator
  
  If you don't have an administrator then select
  
  "no" I don't have an administrator
  
  This Minute has been written to comply with best practice. It lets the Australian Tax Office know that you are seeking to do everything correctly.

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Current Administrator Details

• Who is the outgoing administrator?

  This is the company who currently administers the Self Managed Super Fund.
  
  The new administrator will replace this company.
  

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New Administrator

• Who is the new administrator?

  This is the company you are appointing to manage your Self Managed Super Fund. Under your appointment they are to administer your Self Managed Super Fund and ensure that your fund complies with all the regulations.

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• Who should I appoint as the administrator?

  This is a personal decision. There are many factors to consider before deciding on who to appoint. Some matters you might want to consider are:
  
  * Is the company / person experienced in managing self managed funds?
  * Is the company / person reputable?
  * Is the company / person a member of a professional body?
  * What services does the company provide?
  * What will you still have to do?
  
  This list is not exhaustive. You should satisfy yourself that the business is capable of doing the job you want them to do.

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Meeting Place

• What is a meeting address?

  The meeting address is the actual address of where the trustees or directors meet to discuss the Minutes.
  
  This can be your office, your home, the office or home of another or a public place.
  

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• Does the meeting need to take place anywhere in particular?

  The meeting may be held in any location.
  This can even be held electronically with those attending being a great distance from each other.
  

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This document has been prepared by the law practice Law Central Legal