Self Managed Super Funds (SMSF)

Self Managed Super Funds (SMSF), also known as DIY funds, offer a level of control and flexibility that cannot be achieved with other superannuation funds.

For the right people, with the right reasons and the right advice, they are an excellent family wealth management structure.

They are not for everybody though, and do come with significant responsibility to ensure the fund stays within the rules. Failure to keep the fund within the rules can result in fines, penalties and even jail.

Some of the advantages of an SMSF include:

• Being able to invest, so that income and capital gains are taxed at the lower superannuation tax rates. These rates can be as low as 0% and no higher than 15%.
• Being able to invest in a wide range of assets, including direct property, which are not normally available in traditional super funds.
• Being able to structure income streams or pensions in a very tailored way, that suits you and your family.
• Being able to structure your estate planning to ensure certainty about what happens to your assets when you pass away. An SMSF offers many advantages for estate planning over other ownership structures and over traditional super funds.
• Being in control of all key decisions, including investment decisions, but still having the ability to take advice from specialists. You will need specialist accounting, taxation, investment, estate planning and strategic advice for your fund.
• An SMSF can give you the ability to transfer personally owned shares and some property into the fund
• An SMSF can be used to buy business premises for use in yours or other businesses.

The flipside of flexibility is responsibility and with an SMSF, it is your responsibility to make sure the fund is compliant at all times and that you make the most of all these advantages and opportunities.

This can be easily achieved by making sure you are getting specialist advice from advisers who have experience and expertise in this area. Many do not and you must ensure your advisers do.

The main advisers you will need are an accountant and financial adviser, who are SMSF specialists. They will ensure you stay on track compliance wise, so that you reap all the advantages of having an SMSF.

Can you answer the following questions with confidence: 

1. Do you know exactly why you have (or should have) an SMSF? 
2. Does the super fund have a compliant investment strategy and is the fund operating within the superannuation investment rules? 
3. Are the super fund’s investments in line with the investment strategy and are they likely to allow their members to meet their long term needs and goals? 
4. Do you know exactly what would happen to your super in the event of your death? 
5. Are you aware of and taking advantage of the all the possible ways to contribute money or other assets to your super fund, including all the age restrictions? 
6. Are you aware of and taking advantage of all the ways to withdraw money from your fund, including all the age restrictions? 
7. Are your pensions well structured? 
8. Are you taking advantage of all the opportunities to pay less tax? 
9. Are the super funds records being properly kept? 
10. Is your super fund being regularly reviewed?

At Holmans we take SMSF’s seriously and have a team of specialist accountants and financial advisers to ensure you make the most of your SMSF. 

Holmans regularly run Self Managed Super Fund seminars regularly. To find out more about these seminars click here>>

Information resources
Self Managed Super Fund information booklet
Investment Property and your tax records - Fact sheet