Key Decisions to Make Before Setting Up Your SMSF

Setting up a Self-Managed Super Fund (SMSF) gives you more control over your retirement savings — but it also comes with important responsibilities. Before we prepare your SMSF structure and compliance documents, there are a few key decisions you’ll need to make.

Getting these right upfront ensures your fund is compliant, efficient, and ready for long-term success.

Before You Get Started

It’s important to understand what an SMSF is, who can have one, and the pros and cons before you decide to set one up.

We recommend reading through the following topics:

1. What Are SMSFs?

2. Am I Eligible to Set Up an SMSF?

3. Benefits of an SMSF

4. Risks & Disadvantages of SMSFs

5. Is an SMSF Right for You?

After reading these guides, you’ll have a clear picture of whether an SMSF suits your goals and be ready to move confidently into the setup stage.

1. Choose Your Trustee Structure

Every SMSF must appoint either individual trustees or a corporate trustee. The structure you choose determines how your SMSF operates, how assets are owned, and how easy the fund is to administer over time.

Option A — Individual Trustees

Each member becomes an individual trustee of the fund.

Key points:

• All members must be trustees.

• A single-member SMSF must have two trustees (the member + one other eligible trustee such as a spouse or adult child).

• Changes to membership (e.g., adding or removing members) require updating asset titles each time.

This structure can work for very simple two-person funds, but it becomes more complex over time.

Option B — Corporate Trustee (Preferred)

A company acts as trustee for the SMSF, and each member is a director of that company.

Why most SMSFs choose this option:

• Cleaner separation between personal and SMSF assets

• Only one director needed for a single-member SMSF

• Simpler administration when members join or leave

• Stronger asset-protection and estate-planning flexibility

• Preferred by auditors and industry professionals

If you choose this option, each director must have a Director ID before the company can be incorporated.

2. Decide How Many Members Your SMSF Will Have

SMSFs can have 1–6 members, but most funds have one or two.

Single-Member SMSF

You can operate a single-member fund by either:

• being the sole director of a corporate trustee, or

• appointing two individual trustees (you + another person)

Most single-member clients choose a sole-director corporate trustee for simplicity.

Two-Member SMSF

Common for couples. Both members act as trustees or directors and make decisions together.

Multi-Member SMSF (3–6 members)

Allows more family members but requires clear governance and strong alignment on investment decisions.

3. Check Eligibility and Trustee Responsibilities

This step must be completed early, ensuring you (and any other members) are permitted to be trustees.

You’re eligible if you:

• Are 18+ (or have a legal guardian/EPOA acting for a minor or person under disability)

• Are not an undischarged bankrupt

• Have not been convicted of a dishonesty offence

• Have not been disqualified by the ATO or a court

• Can act as a trustee/director and understand your responsibilities

Residency requirements

Your SMSF must meet the three residency rules to remain an Australian super fund, including keeping central management and control in Australia.

• Fund established in Australia: The SMSF must be set up in Australia and hold at least one asset here.

• Central Management & Control in Australia: High-level decisions must be made in Australia. Temporary overseas travel (generally up to 2 years) is fine if you intend to return.

• Active Member Test: More than 50% of the total balances of contributing members must belong to Australian residents.

If any trustee plans to live or work overseas for an extended period, you should discuss this with HelloLedger before proceeding.

Trustee responsibilities include:

• Acting in members’ best financial interests

• Keeping personal and SMSF assets separate

• Maintaining proper records

• Ensuring annual audit and compliance

• Managing investments responsibly

• Following your trust deed and the SIS Act

If you’re unsure, HelloLedger can help assess your eligibility before setup.

4. Director ID Requirements (if choosing corporate trustee)

If your SMSF will have a corporate trustee, every director must hold a Director ID issued by the Australian Business Registry Services (ABRS).

• Applying takes only a few minutes and you need the myID app.

• You must apply before the company can be set up.

• Your Director ID stays with you for life — you use the same ID for all companies you are a director of.

• If you’re already a company director for business or investment purposes, you may already have one.

• Once you receive your Director ID, provide it to HelloLedger so we can securely record it and complete your ASIC setup.

• HelloLedger will tell you exactly when to complete this step and provide simple instructions.

Apply for your Director ID via ABRS: https://www.abrs.gov.au/director-identification-number

Read our guide: What You Need to Know About Director ID for more tips.

5. Choose Your SMSF Name

Your fund must have a legal name. There are no strict rules — most clients use their surname or family name, such as:

• Martin Super Fund

• The Martin Family Super Fund

• LML Capital Super Fund

We’ll confirm your preferred name when completing your application.

If you’d like help choosing a suitable fund name, you can read our guide: Choosing a Name for Your SMSF.

6. Choose Your Corporate Trustee Name (If Using a Company)

If your SMSF will have a corporate trustee, you’ll also need to choose a name for the trustee company. This doesn’t need to match the SMSF name but keeping them similar can make administration easier.

• The company name must comply with ASIC rules and be unique.

• It must end with an allowed ASIC suffix, such as:

  • Pty Ltd

  • PTY LTD

  • Pty Limited

  • Proprietary Limited

• Avoid special characters and punctuation that may cause registration delays.

• Try to choose something simple, professional and consistent with your SMSF name.

• The corporate trustee name will appear on legal documents, bank accounts and investment titles.

  
  

Examples:

• Martin Super Pty Ltd

• Martin Family Superannuation Proprietary Limited

• LML SUPER PTY LTD

We’ll confirm your preferred company name when preparing your application and help you check ASIC availability.

7. Understand Your Investment Approach

You don’t need a detailed strategy yet — that happens after setup. However it helps to have a broad idea of the types of assets you expect to invest in. This ensures your documents and structure are set up correctly.

Common investment categories include:

• Cash and term deposits

• ASX-listed shares and ETFs

• Managed funds

• Property (residential or commercial)

• Precious metals

• Cryptocurrency (requires additional admin and audit work)

You’ll finalise your official investment strategy once the SMSF is established.

8. Think About Your Rollovers and Contributions

Consider how money will enter your SMSF:

• Will you roll over your existing super accounts?

• Will employer contributions be directed to the new SMSF?

• Do you plan to salary-sacrifice or make personal contributions?

Rollovers can only occur after the SMSF is established and appears on Super Fund Lookup, which typically takes a few weeks.

9. Confirm You Understand Ongoing Responsibilities

Running an SMSF is an ongoing commitment. Each year, trustees must:

• Keep accurate financial records

• Ensure contributions and payments meet ATO rules

• Complete an annual audit

• Lodge an SMSF annual return

• Maintain an investment strategy

• Act in accordance with the trust deed

• Keep up with changes to super law

HelloLedger handles administration, tax, and compliance — but trustees retain legal responsibility.

What Happens Next

Once you’re comfortable with these decisions, you’re ready to move on to the setup stage.

HelloLedger will prepare and manage all permitted tax and compliance documentation required to establish your SMSF, including:

• Trustee structure setup and governing rules (trust deed)

• Company incorporation documents (if using a corporate trustee)

• ABN, TFN and ATO registrations for your SMSF

• Trustee declarations and member forms

• An SMSF investment strategy framework to help you document your legal obligations as trustee

• A setup checklist so you know exactly what comes next

• Administrative support for bank account setup and rollover requests (at your direction)

You’ll also receive clear guidance on the steps involved in the first 4–6 weeks of your SMSF establishment process.

Ready to Set Up Your SMSF?

We make the process simple, compliant and fully guided so you always know what to do next.

Start your SMSF application

Book a call to discuss whether an SMSF is right for you