What is an SMSF?

A Self-Managed Superannuation Fund (SMSF) is a saving vehicle, regulated by the ATO, for the sole purpose of funding your retirement, and/or death benefits.

The major difference between an SMSF and other superannuation funds is that the members of the SMSF are usually also the trustees of the fund. The members run the SMSF for their own benefit and are responsible for complying with super and tax laws.

How do they work?

Members

Maximum four members.

Trustees

All members must be trustees (or directors of the corporate trustee).

Responsibility

Trustees are responsible for decisions made in administering the fund.

Legal Obligations

The role of trustee or director, which imposes legal obligations on you.

Investment Strategy

Prepare and implement an investment strategy appropriate for your risk profile to meet retirement needs.

Knowledge

Have sufficient financial experience and skills to make sound investment decisions, or engage a professional partner to provide this support.

Compliance

Managing an SMSF requires you to be aware of your responsibilities as trustee and take the steps to maintain SMSF compliance with legislation.

Condition of Release

Ensure member entitlements are only used to provide retirement benefits, after a member has met a condition of release or required to do so under a Release Authority.

Is an SMSF right for you?

Can your investment choices provide you with better investment performance? You may want to invest in a wider range of assets than a retail or industry fund. Eg. Business Real Property.

Does your fund include additional benefits like life insurance, income protection insurance or other benefits? Can the cost of similar financial products be provided within an SMSF?

Do you have a team of professionals to help you make the right decisions and manage your fund? Use reputable Administration Services, Financial Planners, Investment Managers, Solicitors and Auditors to ensure you meet your trustee obligations and remain a complying superannuation fund.

Do you have the time to manage your SMSF? An SMSF may require additional time compared to a retail or industry fund to manage and invest.

Compare costs, time and skills required between your existing fund and an SMSF before making a move.