DIY Superannuation – Not a regular among the DIY jobs

Even though the super choice system has not been around that long, the popularity of DIY superannuation is growing constantly. You can basically have you employer deposit funds on your own funds. You will however need to create the funds.
First of all you will need to make your own fund and give a name to it. You can basically choose any name you like that isn’t taken yet. Next you will have to get an Australian business number and a tax file number. You also have to register your fund for tax purposes. Once your fund is created you can add up to four members. Now it is time to get a trust deed. These normally cost around $400. For this money you should definitely try to find one that gives you the ability to make a lot of benefits, like being able to receive gifts and to be able to give an amount of money once you are retired etc.
Since your DIY superannuation funds cannot be taken from a regular account and must be quarantined you should have it deposited on a special bank account under your name. Then it’s a matter of choosing the right investment strategies. Do keep all the bills and receipts of the bank account because you will have to hand in business activity statement every three months. This is DIY superannuation in a nutshell; there is more to it though. It is advised to do your research and perhaps even talk to a financial adviser before you take any steps.
Mel C writes about theDIY superannuation and gives DIY superannuation tips.