Self Managed Super

 

What is a Self-Managed Superannuation Fund (SMSF)?

This is a superannuation fund established by a trustee (who may be either, individual persons or a corporation) who exercises full control over fund assets and investment decisions in accordance with superannuation legislation and a written investment strategy. By definition, a SMSF must have no more than 4 members. The fund must be "regulated" to obtain a concessional rate of tax of (a maximum of) 15% on its earnings and contributions.

Why you would use a SMSF?

The family superannuation fund is the best entity for creating wealth, retirement income and estate planning for families.

The maximum tax payable is 15%. Capital gains tax can be as low as 10%. These taxes can be minimised further with the use of imputation credits from dividends, providing tax credits of up to 30%.
Your family superannuation fund provides numerous benefits of choice:

     •choice of investment products and the mix of those investments not available to members of major funds

     •choice of providing for your children and grandchildren via your super fund with life assurance policies and disability insurance in the event of illness or incapacity due to accident etc.

     •in fact SMSFs give you almost unlimited choice with few restrictions. They are an inter-generational investment vehicle used by over 360,000 Australian families to provide their retirement needs.

SMSFs give you control and flexibility over your accumulated retirement benefits.

Every SMSF is different. Each is tailored specifically for the family. It empowers people to control the development of their fund to retirement and in drawing upon those benefits once retired.

All of the transactions are controlled by the fund's trustees who are usually also the only members. They therefore control all transactions including outgoings.

SMSFs allow control of the timing for asset disposal, meaning that realisation of gains can be deferred until such time that assets are supporting a pension, when the fund's income becomes tax free.

SMSFs can also provide income streams: for retirement, or if a member becomes temporary or permanently disabled.