General Information

• Smaller Superannuation Funds (DIY Funds) are regulated by the Australian Taxation Office within the S.I.S. Act.
• Superannuation/Pension fund trust deeds arranged by Crea & Co Pty Ltd fully comply with Australian Taxation Office and S.I.S. Act requirements.
• You do not need to be in business to set up your own superannuation fund.
• You can roll your Superannuation Fund monies out of most funds into your own Superannuation Fund.
• You do not need a corporate trustee (i.e. Pty Ltd company) unless there is only one beneficiary of the Superannuation Fund and an acceptable other person is not available. The other person does not need to be a relative.
• The trustees of the Superannuation Fund are normally 2 individuals (usually husband and wife).
• There cannot be more than 4 members of the fund all of whom must be trustees of the fund.
• Normally it is not worthwhile setting up a DIY Super Fund unless there is about $100,000 in assets or more. This depends on the fees charged by your present Super Fund.

• With your DIY Super Fund there are no fees charged on your or your employer's regular superannuation contributions.

Example:
Contribution $500.00 per month being $6000.00 per year at a fee of 5% charged by a Fund Manager = $300.00, which will give a further savings as this fee will not be charged by Crea & Co for your own DIY Fund.

• You may have special circumstances or you may wish to control your own destiny even if you do not have a large amount of assets and still wish to establish your own DIY Fund.
• A Superannuation Fund/Pension Fund cannot borrow, which can limit what can be purchased, e.g. a property purchase may require borrowings. In some cases it is possible to still purchase the property. However, Crea & Co advice is essential as a breach of the superannuation regulations can result in severe penalties. E.g. a fund may purchase an investment property as tenants in common with you, providing the investment property is not used as security.
• Note a charge over the funds assets also is not allowed. There are two limited circumstances in which a DIY Fund can borrow being:
  1. Up to 10% of the fund's total assets may be borrowed to meet benefit payments due to members or to meet a surcharge liability up to a maximum of 90 days.
  2. To a maximum of 7 days to settle security transactions if the borrowing does not exceed 10% of fund total assets. However this can only be done when it is unlikely that the borrowings would have been required at the time the transaction was entered into.
• Funds cannot give a benefit or purchase assets from you or your relatives, other than in limited circumstances (business real property and listed shares and in house assets that do not result in the in house asset being more than 5% of the total fund assets.).
• The superannuation regulations can limit the type of your investments, however Crea & Co can give you adequate advice, e.g. investments only in speculative mining company exploration floats will not be permitted.
• Permitted dealings with you or your relatives must be done on an arms length (market value) basis, e.g. a business owned by you leasing a property from the super/pension fund. The general rule is no dealings with you, or your relatives, and the super fund is permitted. Loans to members or relatives or buying a holiday home in a Super Fund are not permitted. However your employer company can borrow up to 5% of the market value of the fund at the time the loan is taken.
• Mixing personal and Fund assets it must be clear which assets are the Super Fund's. Personal assets must not be mixed with Super Fund assets. Personal expenses can not be paid from the funds bank account.
• Keep proper records Trustees must keep some records for five years and others records for ten years.
• A Super Fund can not operate a business in the ordinary sense of business.
• Crea & Co can handle superannuation funds and pension funds anywhere in Australia.
• Crea & Co Pty Ltd has been in existence for over 30 years and have over 30 years experience in handling DIY Superannuation/Pension Funds. Crea & Co. are DIY Super/ Pension Fund specialists.
• Crea & Co's other services are available on a no obligation basis. There is no obligation to transfer your other accounting /taxation work to Crea & Co although Crea & Co will welcome this work as well. This provides a convenient one-stop service.
• WARNING: A breach of Government regulations could result in your fund assets and income being liable for severe penalties including tax at the higher rate of 48.5%, Trustees may also incur fines of up to $220,000 or even a jail term of up to five years.
• All decisions and responsibilities associated with running the fund are incurred by the Trustee. You are responsible for the fund meeting requirements on time, so that you must be keep up to date. Crea & Co's experience in compliance is a must for most Trustees.

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