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Why you should have a Corporate Trustee for your Fund

If a penalty is incurred by a Fund with Individual Trustees, they will be issued the fine personally. Therefore, where a Fund has 2 Trustees, the fine is issuedin full to each Trustee.

If your Fund has aCorporate Trustee, the Corporate Trustee Directors receive the fine 'joint and severally', meaning the fine is levied only once, and the Directors must pay between them personally.

If your Fund does not have a Corporate Trustee, breaching SIS law could be a very costly problem.

Similarly, if your Fund's Corporate Trustee is a company that also operates as Trustee of another entity or in its own right you may be breaching the sole purpose test under the SIS Act.

Our Annual Company Charges (inclusive of ASIC fees) for companies that operate solely as corporate trustees of Self Managed Superannuation Funds are only $200.00 per annum, compared to other company types that cost $400.00 per annum.  This cost can be paid by the Fund and we believe it is a cost you should not dismiss by appointing Individual Trustees instead of a Corporate Trustee.