If you’re wondering whether you can speed through the setup of a Self-Managed Super Fund (SMSF), then keep one thing in mind: there’s no such thing as an SMSF emergency, and rushing the process almost always backfires. Property purchases are often a driving factor in establishing a fund quickly.
Here’s what you need to know about timing and common pitfalls:
Average Timeline
On average the entire SMSF setup will likely take 2–4 weeks.
This includes:
- The fund being active and registered.
- Opening the SMSF bank account.
- Money available to invest.
However, the timeline can vary depending on several factors.
What Affects the Timeline?
- Super Fund Transfers:
Some industry funds may approve rollovers on the same day, assuming all IDs and SMSF bank details are in place. However, others may take up to 4 weeks or more to process rollovers.
- ATO Delays:
If the ATO decides to ask questions of the new trustees, then this will delay your approval as a regulated SMSF. Unfortunately, rollovers can’t begin until this step is complete. - Personal Finances & Tax Compliance:
Delays often occur if you’re not a tax resident, you’re behind on tax lodgements or have outstanding tax debts. - Director ID Requirement (Corporate Trustees Only):
If your SMSF will have a corporate trustee, each director must apply for a Director ID before the SMSF can be set up.
Why Rushing Is a Mistake
Rushing through an SMSF setup often results in missed steps, unnecessary delays, and quite often, contraventions. Taking a methodical approach will save you time (and headaches) in the long run.
If you’re itching to get started, best just take a breath. A well-prepared SMSF setup is worth the wait.
