We hear about Self-Managed Super Funds (SMSF) everywhere from general business meetings to networking to family get togethers. Often they come up as topic of conversation when taking about one’s personal affairs. But what exactly is SMSF?
An SMSF is a form of superannuation fund that offers members greater control over their retirement savings than other types of funds such as industry or retail super funds. SMSF’s are established for the sole purpose of providing benefits to fund members on retirement.
SMSF’s provide many benefits including, greater control over your retirement savings, a wide choice of investment options, potential tax saving advantages and potentially lower annual fees. But, running your own SMSF is not for everyone.
An SMSF can have a maximum of four members, and each member of the fund must be a trustee of the fund, or a director of its Trustee company. No fund member can be an employee of another fund member, unless they are related and no trustee of a fund can receive remuneration for their services as a trustee. This can all be quite complex, so when considering establishing an SMSF, it is best to get good advice or guidance.
We at Proactive can assist you in setting up your own fund whether you opt for individual od corporate trustee status. We can take care your accounting and administrative requirements as well as preparing the annual income tax return. The annual financial statements will need to be audited by an independent auditor after we have prepared them. The Trustees will need prepare, an investment strategy and decide what investments to make to fit the strategy. We have associates who can assist with this.
Although it is generally regarded that there should be some minimum amount of funds invested in an SMSF this really depends on the intentions of the Trustees. You should allow for annual running costs which will include accounting and audit fees, the ATO’s supervisory levy as well as any fees payable in the event that an investment advisor is involved. Trustees should also make sure they are aware of their responsibilities and have sufficient time to devote to making sound investment decisions.
If you are considering an SMSF, please contact us for a confidential discussion on your obligations so you can make an informed decision if this is a viable option for you. A member of our professional team will be happy to assist you with all your SMSF requirements.
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Phone: 07 5539 4143
Fax: 07 5677 0614