Self Managed Super Funds

Self Managed Super Funds

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Do-it-Yourself (DIY) super via a self managed super fund is becoming an increasingly popular choice for investors who want to have control of how their superannuation monies are invested. Self Managed Superannuation Funds ("SMSF") provide individuals with the ultimate expression of choice when it comes to wanting to take a greater level of control of your retirement goals. Super is the way most Australians save money to retire, and for more than 750,000 individuals, SMSFs allow them to be the master of their own financial destiny.

If you are considering managing your own super (SMSF), it does come with responsibility. Super is meant for your retirement, so there are special rules about how it’s managed and when you can access it.

Wealth Fusion provides an extensive range of services within the Self Managed Superannuation Fund marketplace to trustees and members, along with other professionals who advise Trustees within the SMSF industry (i.e. Financial Planners, Accountants and Lawyers). Our solution can be tailored to meet the needs of all trustees and advisers (for their clients), whether it is part of our comprehensive administration and compliance service, pension documentation, audit function or the requirement for specialist SMSF advice.

What is a self managed super fund (SMSF)?

A SMSF is a trust where money or assets are held and managed on behalf of members to provide future retirement benefits. The Superannuation Industry (Supervision) Act 1993 and Regulations (SIS) and related legislation govern Australian superannuation funds and the Australian Tax Office (ATO) is responsible for overseeing the regulation of SMSFs. Mentioned below are some features of the SMSF structure. This information is only an overview, please discuss your personal circumstances with an Outlook financial planner.

Wealth Fusion has a comprehensive service and advice package that can assist and guide you in setting up and operating an efficient SMSF. There are several phases applicable to the 'life' of a Self Managed Super Fund. This is commonly referred to as the SMSF 'life cycle', which includes:

SMSF requirements

  • 4 members or less
  • All members are trustees (or directors of trustee company)
  • All trustees/directors are members
  • Special rules for single member funds
  • No member is an employee of another unless related Trustees receive no remuneration
  • Regulated by ATO

Why a SMSF?

  • Greater flexibility
  • Personal control over investments:
  • Wider range of investment options, e.g. invest in direct shares and property
  • On going after retirement
  • Better estate planning opportunities

Disadvantages of a SMSF?

  • Lack of investment expertise among trustees
  • Onerous trustee responsibilities:
    • Trustee obligations
    • Administrative obligations
  • Risk of non-compliance due to lack of knowledge of SIS Act
  • Potentially greater running costs for smaller funds

Investment Standards

  • A self managed fund must:
    • satisfy the ‘sole purpose test’
    • have an investment strategy enter transactions on an arm’s length basis
  • A self managed fund must not:
    • borrow or acquire assets from related parties
    • lend money to members
    • provide financial assistance to members or relatives of members
    • invest > 5% of the funds assets in in-house investments

Wealth Fusion provides advice on all aspects of setting up, running and winding up a SMSF. Strategic, administrative and management advice is provided by people specialising in SMSF.

Debbie Hudson Financial Services Pty Ltd T/A Wealth Fusion is a Corporate Authorised Representative of Paragem Pty Ltd ABN: 16 108 571 875, AFSL No: 297276