Self Managed Superannuation Fund, also known as DIY Super, where the fund is operated by the members themselves
The members are also trustees of the fund and have full control over all aspect, including the investments of the fund.
You should take an interest because after the primary home, for most Australians, their superannuation is the second most important asset.
Self managed superannuation funds, also known as a Do-It-Yourself (DIY) super funds are small family or one-member funds established by people who wants to take a hands on role in running their superannuation fund.
A self managed superannuation fund is like any other superannuation fund with the distinction that it is a small private fund. It is in effect your very own personal superannuation fund - and it is legal.
Is defined generally as follows:
- has less than 5 members
- each individual trustee is also a member of the fund
- no member of the fund is an employee of another member, unless those members are related
- no trustee of the fund receive any remuneration for services as a trustee
The Australian Taxation Office (ATO) has responsibility for overseeing and regulating self managed superannuation funds.
These funds are governed by some important rules. These funds must have less than five members and all members must also be trustees.
One-member funds must have two trustees. The second trustee must be a relative or a person who is not an employer of the member.
The trustee of a self managed superannuation fund is responsible for ensuring that the fund is properly managed and complies with all the requirements of the SIS Act and Regulations, and other statutory and legal obligations with regard to the operation of the superannuation fund.
Trustees of self managed superannuation funds must not (and not permitted under SIS Act to) receive remuneration for duties and services rendered to the fund.
These funds must be maintained solely for the purpose of providing benefits for members on their retirement.
The choice of fund takes effect on 1 July 2005. Most employees are eligible for choice and have the right to set up a self managed superannuation fund for their employer contributions.
