Self-Managed Super Funds
What is a SMSF?
A self-managed superannuation fund (SMSF) is a separate entity structure for the provision of retirement benefits of the members.
Self Managed Superannuation Funds represent the most tax effective and flexible retirement provision structure available. In addition they represent both an effective form of creditor protection and a unique opportunity for estate planning by allowing the provision of pensions and lump sum benefits in retirement.
The trustee(s) bear the ultimate responsibility of the operation of the superannuation fund. The trustee(s) may employ administrators, accountants and investment advisers to help assist in the management of the fund.
Role of Accountants/ Tax Advisors in SMSF:
Tax agents or accountants can help you set up an SMSF and advise you on the establishment, operation, structuring and valuation of an SMSF. However, they cannot advise you about which super fund best suits you or which investments should be in your fund, unless they’re also a licensed financial advisory business.
Role of Financial Advisers in SMSF:
A licensed financial adviser will consider your personal situation and recommend a suitable product for you. By using a financial adviser, you get extra protection if anything goes wrong because you have recourse to an independent complaints scheme.
Why Finance Dot Com:
Finance Dot Com has the unique opportunity of providing all accounting services to SMSF such as establishment and administration as well as providing financial advise and planning for the SMSF.
We provide affordable pricing as well as personalised services to our customers. Furthermore we guide you through all facets of the SMSF from establishment to administration to investment. Our team of Accountants and Financial Advisers have extensive experience in the area of SMSF.
Furthermore you can have access to the latest technology for administration and review of strategy live online.
Of the $1.23 trillion invested in super at 30 June 2010, $390.8 billion was in self managed super funds (SMSF). That is over 30% of all superannuation funds, with SMSF now representing the largest slice of the super industry.
For many Australians, SMSF offer the following advantages:
More control and greater flexibility over investments
SMSF members can choose where their retirement savings are invested, with options including listed shares, bonds, listed investment companies (LICs), Exchange Traded Funds (ETFs) and direct property. This flexibility in investment options allows SMSF members to actively manage their investments. With a hands-on investment approach, SMSF members can quickly adjust their portfolios as markets change. All control lies in the hands of the Trustees.
Lower fees and better performance
For many people (depending on your account balance), the cost of running a SMSF can be significantly lower than that of an alternative retail, industry of other commercial super fund. The main cost for a SMSF is the completion of the annual administration requirements of the fund. If we look at the average cost of an average sort of fund, then the cost will be around about the $2,000 to $2,500 per annum approximately. Commercial super funds on the other hand tend to charge as a % of your fund balance, with a range of around 1% to 2% pa depending on the fund and underlying fund managers used.
Low Taxation rate
A SMSF has one of the lowest rates of tax of any entity in Australia at 15%. The great thing is that the SMSF tax rate may be further reduced by offsetting other tax credits. SMSF’s are allowed to control the timing regarding of disposal of assets. Therefore if a SMSF acquires an asset today and it appreciates by specified percentage by the time its members retire it can be rolled over to an allocated or complying pension fund and there will be 0% tax paid on the realised capital gain of the asset in question.
Pool Together Family Members’ Superannuation
One of the great benefits of a SMSF is that there may be up to four members in one family that can create a SMSF. If a husband and wife and their two grown children wished to pool together their superannuation and buy an investment property, a SMSF makes this possible.
Asset Protection
In the unfortunate event of bankruptcy, assets belonging to SMSF members are generally protected from creditors.
Retirement Income Control
A SMSF provides the highest level of flexibility and control over the distribution of benefits in retirement, whether you wish to take your superannuation benefits in one lump sum, continue to invest or receive it as a pension.
