Blog · SMSF
Is a self managed super fund right for you?
A self managed super fund (SMSF) lets you and up to five other members run your own superannuation. You choose the investments, and you carry the legal responsibility as trustees.
Why people choose an SMSF
- Control: you decide what the fund invests in, from shares and term deposits to direct property.
- Business real property: an SMSF can own your business premises and lease them back to your business at market rent.
- Family pooling: up to six members can combine balances, which can make bigger investments possible.
- Tax and estate planning: more flexibility when you move into retirement phase and plan what happens to your super.
What you're signing up for
- Every member is a trustee, or a director of the corporate trustee, and is legally responsible for the fund.
- The fund must meet the sole purpose test: it exists to provide retirement benefits, not benefits today.
- You need a written investment strategy, and you must review it regularly.
- Every year the fund needs financial statements, an independent audit by an approved SMSF auditor, and an annual return to the ATO.
- Strict rules apply to dealing with related parties, borrowing and holiday homes, among other things.
Who it usually suits
An SMSF tends to make sense when your combined balance is big enough that fixed costs are a small percentage, when you want hands-on control, and when you have the time and interest to stay on top of your obligations. For many people, a good industry or retail fund is still the better choice, and that's a perfectly good answer.
How we help
We set up SMSFs (including the corporate trustee), prepare annual accounts and tax returns, and coordinate the audit. Before any of that, we'll give you a straight answer on whether you need one at all.
This article is general information, not personal financial advice.