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SMSF Trust Deed Features

Compiled by our Tax Law specialist, the main features of the Super Factory’s Trust Deed for Self Managed Superannuation Funds are:

Simplified Documentation

Rather than simply repeating many provisions of the Superannuation Industry (Supervision) Act, our standard deed only deals with matters that are not sufficiently covered under the Act. The result is a much simpler document that only contains what it needs to.

Flexibility

The simplified drafting style used for the Super Fund Deed allows for maximum flexibility in the operation of the fund. This means maximum flexibility about contributions into the fund, the management of assets in the fund and ultimately the payment of benefits out of the fund. The form of any pension benefits can be specified when a pension commences, in accordance with the SIS rules in force at that time.

Incorporation of SIS and Tax Rules

The Super Fund Deed has a clause that incorporates relevant provisions of the law that regulate the operation of Self Managed Funds. The provisions of the law that are incorporated are:

1. the mandatory provisions that must be complied with in order to avoid breaches of the law, and also
2.provisions that have a beneficial operation, including the allowance of an income tax deduction or tax rebate in respect of contributions to the Fund.

Avoiding Frequent Amendments

A substantial advantage of the simplified and flexible drafting of the Super Fund Deed is that it drastically reduces the likelihood of amendments being required to the Fund deed. By contrast, deeds drafted with a great amount of detail require frequent amendments as the law changes.

Employer or Personal Contributions

The ability to make contributions is not limited to employer contributions. The flexible drafting of the Super Fund Deed allows for personal and spouse contributions, and in fact contributions from any person at all who is not restricted by the SIS rules from making contributions.

Maintenance of Self Managed Fund Status

It is important for the purposes of the continuing control of the Fund by the members that the Fund maintains its status as a Self Managed Super Fund. The Super Fund Deed accordingly includes a provision requiring each Trustee and Member to at all times take all steps necessary to ensure that the Fund retains that status, unless all Members agree otherwise.

Accommodation of Latest Planning Strategies

Despite the simplified and flexible drafting style of the Super Fund Deed, it is designed to accommodate any type of superannuation planning strategy.