Self-managed super funds (SMSFs) are a way of saving for retirement. SMSFs are one of the fastest growing sectors of the Australian super industry.
SMSFs give people full control of their own super fund, including all the legal and tax responsibilities associated with doing this.
Is a self-managed super fund right for you? According to Association of Superannuation Funds Australia (ASFA), SMSFs may be the right choice for you if you:
are very knowledgeable about finance and legal matters
have a lot of money in superannuation to make set up and yearly running costs worthwhile
have enough money for ongoing expenses including professional accounting, tax, audit, legal and financial advice
have a lot of spare time to research and check your super investments regularly
have a lot of spare time to manage the fund
have life insurance, including income protection and total and permanent disability cover.
What is an SMSF? SMSFs are a legal tax structure with the sole purpose of providing for your retirement. SMSFs are regulated by the Australian Taxation Office (ATO).
An SMSF can have 1-4 members.
An SMSF is a trust structure and must have a trustee. There are two options: Corporate Trustee Structure or Individual Trustee Structure.
Generally, SMSF trustees will use one central bank account to receive contributions and use that account to make investments.
An SMSF must have a Trust Deed that sets out the governing of the SMSF
An Investment Strategy must be in place that states how you plan to invest the SMSF assets
A Binding Death Nomination will state who you would like you super benefits to be paid in the event of death
Annual tax return and audit must occur every year
You can’t do it all yourself Despite some people calling SMSFs ‘do it yourself super’ or ‘DIY funds’ you will have to work with some other people to meet your obligations.
You will need an independent self-managed super fund auditor who is registered with ASIC to complete your fund’s audit each year.
In some circumstances, you will need a qualified actuary to provide you with an actuarial certificate. Each year, you need to value your assets at market value. In some circumstances, you will need an independent valuer who is qualified to do this; for example, to value artwork.
You may also work with:
An administrator who will manage most of the day-to-day running of the SMSF. The legal and tax responsibilities are still yours even if you use an administrator.
An Accountant to prepare financial accounts, statements and tax returns.
A Financial Adviser for investment and estate planning advice.
How we can help The team at The SMSF Experts can assist you with the investment and estate planning strategies for your SMSF.
SMSFs and Estate Planning is a complex area, but with our experience we will help to make sure your money goes to the right people at the right time.
What will your SMSF cost? The costs of setting up and running an SMSF vary depending on, among other things, your circumstances, super balance, investment strategy and how you choose to manage your fund. The more complex you make it, the more it is likely to cost.
Contact us for more information on Self Managed Super Funds
Ascend Wealth Creation Pty Ltd (ASIC no 1233340) ACN 603 447 801 as Trustee for the Ascend Unit Trust ABN 42 810 874 127 as a Corporate Authorised Representative of The SMSF Expert Pty Ltd ABN 17 155 686 356, Australian Financial Services Licence Number 445113.
The SMSF Expert Pty Ltd Suite 450, 311 Castlereagh Street Sydney NSW 2000 Phone: 1800 MY SMSF (1800 697 673) Fax: 1300 554 322 Email:email@example.com
For any tax, business or accounting query; drop us a line and let us help you out.