What is a Self Managed Super Fund?
As leading SMSF Accountants Melbourne, we can support you through the SMSF set up process.
The benefits of SMSF include the ability to invest in a broader range of assets, the potential for tax planning strategies, and the flexibility to adjust your investments as your circumstances change.
What is a Self Managed Super Fund ?
Self Managed Super Funds (SMSFs) are private superannuation funds that you manage yourself, offering a personalised approach.
Unlike traditional funds managed by larger institutions, SMSFs allow you to tailor your investment strategy to best suit your retirement goals.
What Can an SMSF Can Invest In . . .
- Cash and Term Deposits
- Managed Funds
- Bonds
- Property – including residential, vacant land, farm land, commercial property
- Collectables
- Gold or Silver Bullions
- Australian and International Shares
- Commodities
- Crypto currencies
What are the Benefits of
Having a Self Managed Super Fund?
Control &
Flexibility
As an SMSF member, you have greater control over your investment decisions. This means you can tailor your strategy based on your financial goals and risk appetite. SMSFs offer a wide range of investment options, such as direct property, shares, and even collectibles.
Tax Management & Cost Effectiveness
SMSFs provide opportunities for tax planning that can potentially lead to significant tax savings.
If appropriately managed, the costs of running an SMSF can be lower than other super options, especially for larger balances.
Estate Planning
SMSFs provide more flexibility in estate planning, allowing you to set specific conditions on how your benefits are paid after your death.
Insurance Options
SMSFs let you hold different types of insurance policies for the
fund’s members, potentially providing broader coverage levels.
Self Managed Super Funds Simplified
WITH THE RIGHT ADVICE AND SUPPORT, AN SMSF CAN BE AN EFFECTIVE TOOL TO HELP YOU ACHIEVE YOUR RETIREMENT GOALS.
An SMSF operates much like any other super fund,
learn how does an SMSF work.
It starts with setting up of the SMSF.
You choose your trustees, create the SMSF trust deed, and registering the fund with the Australian Taxation Office (ATO).
Once it is established, the fund can receive super contributions and rollovers from other super funds.
When it comes to investing, the choice is yours.
There are a vast array of SMSF investment options.
Whether it’s shares, property, fixed-interest investments, or even collectables, the decisions rest in your hands.
It’s worth noting that while managing an SMSF offers greater control and flexibility, it also carries greater responsibility.
It is important you have the support of an SMSF Accountant.
With the right guidance and advice, it’s a responsibility many find rewarding.
How Do I Get Started With An SMSF?
Firstly, you need to enlist the help of a professional. Be mindful of offers to set up a fund for free, or on the proviso that a property or another such asset can be purchased through the fund.
Any professional you engage should be independent – an accountant or financial planner who is a SMSF Specialist Advisor.
The Rogerson Kenny Difference
Personal relationships
Regular touchpoints
Personalised reporting
At Rogerson Kenny Business Accountants you will work directly with our Associate Director, Sarah Davie. Sarah understands that SMSF Trustees want to be empowered and enjoys working with them to take control of their retirement savings through properly executed SMSF advice and implementation of that advice.
I’M A BUSINESS OWNER
I’d like to talk to a SMSF & Business Accounting Specialist
FREQUENTLY ASKED QUESTIONS
Can I have insurances through my SMSF, like I do in my retail/industry fund?
An SMSF can hold all the insurances a retail / industry super fund can. An SMSF can hold life insurance, Total and Permanent Disability Insurance (TPD) for “any occupation” and Income Protection Insurance. It is important to consider your insurances will align with a condition of release and that they are not “trapped” inside the SMSF when you need them.
SMSF trustees are legally obliged to consider insurances, as per their Investment Strategy. This however, does not mean insurance is compulsory, merely it needs to be considered. The SMSF trustees may deem that appropriate cover is held outside the SMSF.
We suggest you seek advice from an insurance professional when determining appropriate cover.
Is there anyone who can’t have a SMSF?
In most cases all members of a SMSF must be a trustee or a director of the trustee company. Anyone 18 years and over and not under a legal disability (i.e. Mental impairment or bankruptcy) can be a trustee unless they are a disqualified person.
A person is disqualified if any of the following apply:
- A person has been convicted of an offence involving dishonesty
- A person has been subject to a civil penalty order under the super laws
- A person is considered insolvent under administration
- A person in an undischarged bankrupt
- Has been disqualified by a regulator
If a person is any of these things, then they will likely be ineligible to be a trustee of a SMSF.
Can I buy property with my SMSF?
Your SMSF can buy any type of property that the trustees feel fits the investment strategy of their SMSF, however it is important to understand the specific rules that apply to owning and using a property that is owned by an SMSF.
This mean you can buy a commercial property, residential property, vacant land, farm land, etc. There are however restrictions with regard to property and SMSF.
Learn More here
for example:
A member of an SMSF or related party to a member of an SMSF can’t have use of the property, unless it is deemed business real property (wholly and exclusively used in one or more businesses) and it is done so at market rates. This means if the SMSF owned a beach house, the SMSF members or related parties couldn’t have use of this, however it could be rented. Conversely, a SMSF member or related party could rent business real property, such as a commercial factory to operate their business from, so long as done so on an arm’s length basis.
There is a prohibition of the acquisition of assets from a SMSF member or related party, with one of the exemptions being business real property, so an SMSF can buy business real property from a SMSF member or related party (but couldn’t buy a beach house or residential property for example – even at market rates).
At Rogerson Kenny we see successful outcomes, where business owners buy their business premises via their SMSF (usually with a borrowing). This sees the business pay rent to the SMSF (at market rates), rather than to a third party. There is a greater level of care for the asset, as effectively, the business owner and SMSF trustees (the same people) have a vested interest. This can be a great way to plan for and grow your retirement savings, whilst allowing your business the security of a desired premises.
Further, there are often tax advantages, as you are receiving a tax deduction in the business for rent paid to the SMSF, which is taxed concessionally at either 15%, or 0% if in pension phase.
What can an SMSF invest in?
SMSF members can invest in a way that is often unavailable in most other super funds.
You can hold direct property, listed and unlisted shares, artwork and other exotic or not-so-common investments.
The Sole Purpose (or core purpose) of your SMSF must be to provide retirement benefits to the members of the fund on retirement or benefits to a deceased members dependant or estate on the death of a member.
Investment rules for SMSFs are in place and regulated by the ATO to limit the risks that SMSF fund members are exposed to, to maintain / maximise retirement savings.
Your Ultimate Guide To Setting up a SMSF
Contact Details
Suite 13, 241 Blackburn Road
Mount Waverley VIC 3149
info@rogersonkenny.com.au
Contact Details
Suite 13, 241 Blackburn Road
Mount Waverley VIC 3149
info@rogersonkenny.com.au
