A SMSF is a tax effective savings vehicle which provides retirees and other superannuation benefits to its members. A SMSF allows to tailor your own investment options meanwhile the ability to consolidate your superannuation money with other members of the family.

SMSF provides benefits that are not usually available under a retail superannuation fund. They involve around control, flexibility and timing of investment an taxation decisions.

There also comes responsibility running your own superannuation vehicle. You will be required to spend more time on decision making, review and reporting to the tax office.

Setting up a SMSF requires the assistance of other professionals to ensure your are meeting regulatory and taxation responsibility.

SMSF are required by the ATO to meet strict Trustee and investment restrictions to ensure you are investing for your retirement benefits.

We can assist you with setting up and running your SMSF to ensure you remain compliant and development strategies and an investment portfolio that meets your individual needs and circumstances.

SMSF - Some key points to consider

A SMSF is a type of superannuation fund that is regulated by the Australian Taxation Office (ATO).  A superannuation fund is not a legal entity but a type of Trust. In being a trust, it is required to have a trustee or trustees.  The trustee or trustees of a superannuation fund are responsible for holding the superannuation assets on behalf of its members.

The trustee of the superannuation fund can either be individuals or a company. The trustee or trustees of a superannuation fund are responsible for holding the superannuation assets on behalf of its members. A SMSF can have a single member fund under a corporate trustee structure.

  • Ensuring that the fund complies with the SISA and other legislation;
  • Maintain the fund for the purpose of providing benefits to you as members upon your retirement.
  • Understand and maintain the terms of the trust deed;
  • Keeping proper records and reporting to members;
  • Completing and lodging returns of the SMSF;
  • Establishing an investment strategy and invest accordingly.
  • A fund cannot a loan or lend money of the fund to, or providing financial assistance to, a member of the fund or a member’s relative
  • Limited on acquiring assets from related party. This does not include business real property, listed securities and managed funds .
  • Fund cannot borrow money on behalf of the fund except in certain limited circumstances.
  • Fund cannot have more than 5% of the market value of the fund’s total assets of loan, leases and investments in relates of the fund
  • Cannot enter into investments that are not made or maintained on an arm’s length (commercial) basis and must purchase asset at market value.

The following are some reasons why you may wish to establish your own SMSF:

  • Provides greater control over your superannuation. It allows you as trustees and members to make the investment decisions and provide you with greater flexibility with the investments the fund can invest in.
  • The SMSF allows you to achieve your goal of greater control, involvement in investment decisions and greater investment options.
  • You have the ability to choose investments such as direct real estate, shares, collectables, and managed funds.
  • A SMSF allows you to consolidate up to four members superannuation balance to grow your retirement funds.
  • The risk of non-compliance with the superannuation, corporations, trust and taxation laws may lead to penalties or non-compliance by the ATO.
  • There are also significant administrative and compliance tasks that must be fulfilled
  • SMSFs do not have access to the Superannuation Complaints Tribunal, if they have suffered loss as a result of fraud by SMSF trustees.