More than a million Australians have chosen to set up a Self Managed Super Fund. This is a personal decision and is certainly not for everyone.
Benefits to having a self managed super fund
Control
You have the ultimate control over how and where your funds are invested, and you have full visibility over your wealth tracking and ultimately your retirement savings.
Tax advantages
All Self Managed Super Funds benefit from concessional tax rates so in accumulation phase the tax on investment income is capped at 15%.
In pension phase there is no tax payable, not even CGT. Many of our clients have purchased their commercial property through a SMSF as this provided tax advantages in their circumstances.
Disadvantages of a self managed super fund
Your SMSF must be overseen by a Trustee, and the administration involved can sometimes be daunting. Trustees must lodge an annual tax return and audit and pay any ATO fees. The more your SMSF grows, the more cost effective this becomes.
As a Trustee you also need to ensure you’re running your SMSF within guidelines and the ATO penalties can be significant for any breaches.
Get the right advice
If you’re looking to start your own SMSF, you’re best to seek the right advice from an investment and taxation perspective, and seek assistance in ensuring you comply with the rules surrounding SMSF’s. It’s also wise to ensure the benefits will outweigh the costs associated with having your own SMSF, as you need to ensure you have a minimum amount invested to make it worthwhile.
Marsh & Partners are experts in looking after your self managed super fund needs and can assist you with the establishment and ongoing management.
Further help:
Marsh & Partners are experts in looking after your self managed super fund needs and can assist you with the establishment and ongoing management.
If you’d like to make an appointment to discuss your options, contact our SMSF experts on (07) 3023 4800 or at mail@marshpartners.com.au.
Visit our SMSF page to find out more about how we help.
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GENERAL ADVICE WARNING: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. We suggest you obtain specific financial advice from a licensed financial advisor.
