SMSF Establishment & Administration Setup Guide

Your Process Guide to Getting Started the Right Way

Introduction

If you’ve read this guide, you’ve likely already decided an SMSF is right for you. The next question is: How do I set one up properly?

At Vivacè Advisory, we know the setup stage is critical. Done right, it gives you the flexibility, control, and compliance framework you need for long-term success. Done poorly, it can cause headaches that are expensive to fix later. This guide steps you through the process and shows why professional support makes all the difference.

1. Planning and Preparation Before You Start

Before any paperwork is filed, key decisions need to be made: - Choosing between individual trustees or a corporate trustee - Defining your investment strategy from day one - Planning initial contributions and rollovers - Setting up your fund’s governance framework

Rushing into setup without this preparation often leads to structural issues. For example, choosing the wrong trustee structure may limit your investment options or complicate your estate planning. With careful planning upfront, you avoid costly problems later.

2. Legal Setup and Documentation

The legal framework of your SMSF is built on its documentation:

• Trust deed – the “constitution” of your fund, setting out what it can and can’t do.

• Trustee appointments – documenting who is responsible for running the fund.

• Registrations – lodging with the ATO for ABN, TFN, and electing to be a regulated super fund.

Generic documents often cause problems down the track. At Vivacè Advisory, we ensure your deed and registrations are tailored to your needs and fully compliant from day one.

Important: Generic documents often cause problems down the track. At Vivacè Advisory, we ensure your deed and registrations are tailored to your needs and fully compliant from day one.

2.1 Borrowing in Super – The Bare Trust Setup

If your SMSF intends to borrow under a Limited Recourse Borrowing Arrangement (LRBA), an additional structure is required: a bare trust (also called a holding trust). The bare trust is the legal owner of the property while your SMSF holds a beneficial interest. This ensures the lender’s rights are limited to that single asset, as required by law.

This is a complex area where mistakes can be costly. Getting the bare trust deed and LRBA structure right from the beginning is essential, and professional guidance is strongly recommended.

3. Banking and Investment Setup

Once your fund is legally established, you’ll need to:

• Open a dedicated bank account for the fund

• Choose an investment platform or broker

• Implement your initial investment strategy

At Vivacè Advisory, we can assist in establishing default banking and platform arrangements on your behalf.

If you’ll be investing in digital assets there’s a bit to consider here including who your SMSF banks with due to restrictions imposed by some banks on transfers to digital wallets. We’ll be releasing a separate guide dedicated to digital assets and detailed compliance considerations later.

Rollovers and Insurance

You’ll also need to decide how to handle your existing super balances. Rollovers can be done partially (to retain existing insurance coverage) or in full effectively closing down your old fund. Vivacè Advisory can assist with both approaches to make the process seamless.

This is also the stage where you review your life insurance cover. You can either:

• Maintain your existing insurance coverage with your current super fund, leaving a balance within to maintain the premiums; OR

• Ask Vivacè Advisory to source quotes for you at levels you dictate, OR

• Engage us for personalised life risk advice tailored to your family’s needs (available at an additional cost).

4. Compliance Framework and Record Keeping

Compliance begins the moment your SMSF is established. From day one, trustees must:

• Keep accurate records of all decisions and transactions

• Meet annual reporting and lodgement obligations

• Undergo an independent audit each year

Poor record keeping can create major issues at audit time

5. Ongoing Administration and Professional Support

After setup, running an SMSF means:

• Managing investments and strategy reviews

• Monitoring compliance throughout the year

• Working with professionals for administration and advice

Successful trustees usually partner with accountants, auditors and advisers to make sure their SMSF not only complies with the law but also works towards their retirement goals.

We build compliance systems that ensure every transaction is recorded properly, build your audit file & keep your super fund on track. We also have fixed audit fee solutions from our audit partner to make sure you know what you’re up for in fees annually.

Conclusion

Setting up an SMSF is more than just paperwork. It’s about building the right foundation for your retirement strategy. With Vivacè Advisory, you get expert guidance from professionals who understand both the legal and strategic sides of SMSFs. We live, breathe and specialise in the sector.

Next steps: Contact us today to discuss setting up your SMSF the right way — with confidence and clarity.

Important Information – No Advice Disclaimer

The information contained in this guide is factual in nature and provided for educational purposes only. It does not take into account your objectives, financial situation, or needs. It is not intended to be, and should not be relied upon as, financial product advice or a recommendation in relation to any financial product or service. Before making any financial or investment decision, you should assess whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser, tax agent, or other qualified professional. This material has been prepared in accordance with ASIC regulatory guidance on the provision of factual information.