How does an SMSF work in Australia?

A SMSF, like any other legal structure, will require an ABN and a TFN. It can also be registered for GST depending on the circumstances.

Once an ABN and TFN have been obtained the SMSF will need to setup a new bank account in the name of the SMSF.

The members can then organise for their employer(s) to redirect their Superannuation Guarantee payments to their new SMSF bank account. It is also recommended that the member’s rollover their existing superannuation balances into the new SMSF.

When the SMSF bank account has sufficient cash funds available the members can then begin to invest their superannuation monies accordingly.