Setting up and managing an SMSF can be complex, below is a list of some common terms you should be aware of for your SMSF.
Australian Business Number (ABN)
A unique number that identifies your SMSF for tax and regulatory purposes.
APRA
APRA stands for the Australian Prudential Regulation Authority. It is the prudential regulator responsible for overseeing the financial soundness and governance of large superannuation funds in Australia.
Audit
An annual independent review of your SMSFs financials and compliance with super laws.
Corporate trustee
It’s an SMSF structure where a company acts as the trustee. Each member is a director of the company. It offers more flexibility and easier succession planning.
Concessional contributions
Before-tax contributions to your super, such as employer contributions or salary sacrifice.
Electronic Service Address (ESA)
A digital address used to receive employer contributions and rollover data via SuperStream.
Individual trustee
It’s an SMSF structure where each member is a trustee. It’s simpler to set up but can be less flexible in the long term.
Investment strategy
A written plan that outlines how the SMSF will invest its money. The strategy should take into account risk, diversification, liquidity, and insurance.
Non-concessional contributions
Non-concessional contributions are after-tax contributions made to your super from personal savings or on your behalf by others - such as a spouse or employer.
Preservation age
The age at which you can start accessing your super. It’s usually between 55 and 60 but will depend on your date of birth.
Rollover
The process of transferring super savings from one fund to another, such as from a retail fund into your SMSF.
Self-Managed Super Fund (SMSF)
A super fund that you manage yourself. An SMSF gives you control over investment decisions and the fund's operations.
SMSF Annual Return (SAR)
The SMSF Annual Return (SAR) is a comprehensive report that every Self-Managed Super Fund (SMSF) in Australia must lodge with the Australian Taxation Office (ATO) each financial year.
Super Fund lookup tool
The Super Fund Lookup tool checks the registration and compliance status of a Self-Managed Super Fund (SMSF). It's provided by the Australian Government.
SuperStream
The government's platform for sending super contributions and data between employers and funds.
Tax File Number (TFN)
A number issued by the ATO to identify your SMSF for tax reporting.
Trust Deed
A legal document that outlines the rules for how the SMSF will be setup and how it will operate. It states the rules governing the fund - what it can and cannot do.
Trustee
A person (or company) responsible for running the SMSF and ensuring it complies with super laws. All members must be trustees or directors of a corporate trustee.
