Under Choice of Fund, you can choose to have your employer contributions paid directly into your SMSF.
The 3 things your employer will most likely ask for are:
1. Bank Accounts
Account number and BSB in the name of the SMSF
2. ABN of the Fund
Give them a copy of the ABN registration
3. Trust Deed
This is to verify you are a Member of the SMSF
Another option is to let the employer continue to pay into your existing retail fund, from which you roll over to your SMSF over a period of time.
Your employer might ask you to fill out the Choice of Fund document from the ATO. Just check with your HR department on their requirements.
The advantage of keeping the retail fund open is that it gives you access to low insurance rates via negotiated group insurance policies.
Disadvantages are that most funds charge a rollover fee of around $50 and you’ll continue paying fees and charges on your retail fund. Retail funds also employ delaying tactics to defer the payment of balances over to your SMSF. Some retail funds are reluctant to let go of your money even though it doesn’t belong to them.
