What is Self Managed Super Fund

An SMSF is a superannuation trust structure that provides benefits to its members and their beneficiaries on retirement. SMSF is required to set up a trust where members are the trustees of the fund.

Trustees are the ones who decide where and how their funds are invested and controlled. Our clients often report that having greater visibility over their retirement savings has led to a deeper understanding of how their overall wealth is tracking. It gives them more confidence in their investments and lifestyle decisions.

Apply Now!

Key benefits of setting up an SMSF:

1. Investment Choice

SMSF provide more investment options than any other super fund, such as investing in direct properties, direct shares, business and commercial properties, individually managed portfolios and more!.

2. Invest Actively

You as a trustee of the fund can invest more actively and have total control over your investments.

3. Transparency

SMSF offer significant transparencies that allow trustees to align their goals to investment decisions. Whether you’re passionate about property, shares or any other investments, SMSF allows you to better understand where your money is invested and it helps you gain a better understanding of the market returns, performance and tax treatment.

4. Flexibility

Trustees can adjust their investment mix as it suits them, allowing for a fast response to changes in market conditions, super rules or personal circumstances. You can sell and buy any investment options as you wish or as per the market conditions.

5. Cost

  • Setting up an SMSF and adviser fees
  • Annual fees
  • Annual Tax returns
  • Audit, Accounting fees
  • The more an SMSF grows, the most cost effective it becomes. The cost of the SMSF depends on the investment structure and any cost associated with that investment.

6. Funds pooling

A SMSF can have up to 4 members, who can pool their super funds and invest together. This will give them more leverage in investing.

Responsibilities of SMSF trustees These include:

  • Trustees are responsible for administering the fund, keeping the fund Compliant and decision making.

  • The need to maintain your knowledge of investments and legislation surrounding SMSFs

  • The management of the fund if there is a potential for a poor

  • The potential for non-compliance in your fund

Factors to consider before the SMSF set up

  • Disclosing your fund and other relevant information

  • Deciding who the fund members are

  • Establishing the trust and Trust Deed

  • Setting up a bank account

  • Registering the fund with the ATO

  • Creating an investment strategy

  • Creating an exit strategy

Factors to consider after the SMSF set up

  • Rolling over existing super funds and consolidating.

  • Organising employer contributions

  • Accepting contributions from other members with in the SMSF limit

  • Making legal and legitimate investments

  • Regular review of investment strategies

  • Documenting and maintaining the fund’s records for up to 10 years

On-going responsibilities of a trustee

  • Prepare accounts and financial statements

  • Lodge an annual income tax return and superfund annual return including members’ statements

  • Annually appoint an approved SMSF auditor to audit the fund

  • Comply with investment requirements

  • Pay the tax dues and SMSF levy

  • Value assets

Making super payments The trustee should:

  • Make sure that every year minimum payments are made

  • Appoint actuary when necessary

  • Provide Summary of Payments to other members and the ATO

  • Withhold tax

  • Decide if any assets can be sold

After the SMSF When the fund has to close down, a trustee must do the following:

  • Get a final audit

  • Lodge a final return

  • Pay remaining outstanding taxes

  • Pay out or roll over the assets

On-going responsibilities of a trustee

  • Prepare accounts and financial statements
  • Lodge an annual income tax return and superfund annual return including members’ statements
  • Annually appoint an approved SMSF auditor to audit the fund
  • Comply with investment requirements
  • Pay the tax dues and SMSF levy
  • Value assets

As a SMSF Trustee, Compliance of the fund with SIS legislation is the legal responsibility of the trustee and the super fund trust deed. These rules bind you to:

  • Act honestly in all matters concerning the fund
  • Not enter into contracts or behave in a way that deters trustees from performing or exercising their roles or powers
  • Exercise the same degree of care, skill and diligence as an ordinary prudent person in managing the fund
  • Keep the money and assets of the fund separate from your personal money and assets
  • Act in the best interests of all fund recipients
  • Hold control over the fund
  • Allow members access to certain information
  • Develop and implement an Investment Strategy

SMSF annual obligations An SMSF has a number of annual obligations that the trustees need to ensure that they adhere to or else face fines and penalties which can be quite substantial.

  • Ensure the assets are all valued at market value as at 30 June
  • If the fund has members in both pension and accumulation mode ensure an actuary certificate is obtained to confirm the funds tax exempt percentage
  • Ensure the funds year end financial statements and annual return are prepared
  • Appoint an approved auditor at least 45 days before the SMSF annual return is due to be lodged
  • Ensure the SMSF annual return is lodged by the due date
  • Ensure all the records of the fund are being maintained in accordance with the super laws
  • Ensure the ATO is notified of any change in address or fund status, trustee structure or members

ONE BRIDGE WEALTH

FREE PHONE CONSULTATION

CONTACT US NOW