The benefits associated with the use of a corporate trustee are as follows:

• Less administrative burden associated with the introduction of new members / existing members leaving the fund, as the corporate trustee will remain the legal owner, with any changes to the members of the superannuation fund being reflected in the appointment / removal of directors. In the case of a SMSF having individual trustees, the legal owner of all investments would need to be changed every time a new trustee is appointed / removed (which may prove to be a costly process);
• A corporate trustee allows greater flexibility in relation to estate planning as the corporate trustee does not cease to exist upon the death of a member. When a member dies, the death benefits are dealt with at the discretion of the trustee(s) (subject to any reversionary pensions of binding death benefit nominations). The shares in the corporate trustee can be willed to the intended recipient of the death benefit (who could then elect to appoint themselves as a director of the corporate trustee, in addition changes could be made to the company constitution to deal with the payment of the death benefits.
• The SMSF has the benefit of limited liability in the event that it is subject to litigation;
• Where a SMSF breaches the superannuation laws, the ATO may levy administrative penalties on each of the trustees, where a corporate trustee is appointed only a single instance of the penalty will arise. In the case of a SMSF having individual trustees, the ATO can levy the penalty on each of the trustees (this can result in up to four (4) times the penalty imposed on a corporate trustee in the case of a four (4) member fund); and
• Single member funds are required to have two (2) individuals appointed as trustee, whereas if a corporate trustee is appointed only the member needs to be a shareholder/director of the corporate trustee.

 The costs associated with the use of a corporate trustee are as follows:

• Costs associated with incorporate of a company to act as the corporate trustee;
• Payment of the annual review fee to ASIC (currently $263 per annum). Note that this can be reduced the company acts solely in the capacity of trustee of a super fund (currently $53 per annum). This requires the company to modify its constitution to meet certain requirements to be considered a “special purpose company” and obtain the reduced annual review fee.