What is a Self-Managed Super Fund?
A Self-Managed Super Fund (SMSF) is a type of superannuation fund where the members are also the trustees, enabling them to manage their own retirement savings. This setup provides businesses with greater control over their investments while requiring compliance with superannuation and tax laws. Given the complexities and frequent changes in regulations, expert support is essential to navigate this landscape effectively.
Benefits of Self-Managed Super Funds
Engaging the right accountant for your SMSF ensures compliance and efficient management of your fund. Benefits of switching to an SMSF include:
- Increased flexibility with tax implications, such as capital gains and franking credits.
- Reduced fees as your fund balance grows.
- Enhanced options for death benefits compared to public funds.
- Asset protection from risks, including bankruptcy.
Why Hire An SMSF Accountant?
The intricacies of managing an SMSF—such as investment strategies, compliance with the Australian Taxation Office (ATO), and thorough record keeping—can be overwhelming for both small and medium organisations. An SMSF accountant serves as a strategic partner, helping you manage every aspect of your fund. This expert will assist in diversifying your investments across various opportunities, including commercial properties that align with your business objectives.
Additionally, an SMSF accountant ensures that your fund accounts are accurately prepared, reducing the stress associated with audits and ensuring compliance with all regulatory requirements.
SMSF Questions We Love to Answer
Achieving ultimate financial freedom for your business is a priority for our clients. Our unique Life Plan process can help you identify your financial goals and the steps needed to reach them.
Did you know you can purchase commercial property through your SMSF? With the right guidance, you can capitalise on recent legislative changes that allow borrowing for such investments.
Establishing a robust superannuation investment strategy is essential for a secure financial future. An SMSF gives you the control you need to choose the right investment avenues that align with your corporate strategy.
Managing the paperwork and due diligence involved with any superannuation fund can be daunting. Our team at The Garis Group specialises in SMSF accounting, administration, and investment services, ensuring a streamlined process for your large business.
Create Your Life Plan
Achieving ULTIMATE financial freedom is our key performance indicator (KPI) for our clients. Helping you to understand what your ‘freedom gap’ is, through our unique Life Plan process may change the course of your life!
Invest in Suitable Property
Did you know you can purchase property with your super fund? With an SMSF you can own residential or commercial property, which can be a wise investment. Not only that, recent changes in legislation now allow your super fund to borrow money for real estate investment, whether that’s in Newcastle, the Hunter Valley, Sydney or further afield. There are significant legal requirements for borrowing within a super fund, so talk to us about how to do this.
Implement Your Wealth Growth Strategy
A superannuation investment strategy is both a legal requirement, and a great way to ensure your best possible financial future. Having an SMSF gives you control over where and how you invest for your future, and we want to help you get it right.
Administration & Audit Included
Any superannuation fund comes with a large amount of paperwork and due diligence required. We at The Garis Group are SMSF specialists, providing a comprehensive SMSF accounting, administration and investment service.
Frequently Asked Questions
What is the tax rate on Self-Managed Super Funds?
The simple answer is that an SMSF is regarded as the same as an industry, retail and corporate superannuation fund in eyes of the ATO.
That means the tax rate on an SMSF is 15 per cent, but you have more control over your taxation requirements with an SMSF.
Can I purchase a property from my SMSF?
You can use your SMSF to purchase residential and commercial property, but there are rules and conditions around this kind of investment.
For example, you can purchase a residential home for the purpose of delivering retirement benefits, but you cannot live in the property. You also cannot purchase the residential property from family members and you cannot rent out the property you have purchased in your SMSF to relatives or fellow fund members.
What are the differences between an SMSF and other super funds?
The primary difference is that members of an SMSF have control over all investment choices while members of other funds can only determine the level of risk they accept, not specific investment decisions.
How do I know if my super fund is really working for me?
It’s hard to know whether you’re really getting the best out of a super fund. You don’t have much control, and you also can’t respond quickly if you want to make the most of a potential investment opportunity.
The difference between a high performing super fund and a mid range super fund can end up being tens or hundreds of thousands of dollars! We will help you unlock the best possible future from your superannuation and provide the flexibility and control you need.
What is a Self Managed Super Fund?
A self managed superannuation fund (SMSF) is a superannuation trust structure that is set up for between one & four members to save for retirement. The main difference between SMSFs and other super funds is that the members of the fund also act as trustees – this means they have much greater control over how, where and why investments are made.
Why is it called Self Managed Super Fund if I need my accountant to do it?
It’s a bad name isn’t it! Managing a super fund is a highly specialised area, and only suitably qualified professionals should do it. Take a look at this video from the ATO that outlines the complexities involved.
At The Garis Group our mantra is to help you create a beautiful financial future. We offer a great management service for your superannuation investment, along with taking a holistic look at your financial situation and long-term needs.
What are the costs involved in a Self Managed Super Fund?
No matter what type of superannuation fund you may choose (SMSF, retail fund or industry fund) there will be costs associated with the administration of the fund. Such costs will include administration and accounting costs as well as investment management fees.
One major benefit of a SMSF is that the more you have invested – the more you save on costs!
Even better, as you move from the accumulation phase to the pension phase, the implementation of an estate planning strategy is much easier and more cost effective with an SMSF. In addition, under a traditional retail or industry fund, assets are ‘pooled’ with other investments and when assets are sold down to provide funds for pensions, higher transaction costs are incurred. Such costs are significantly less in a SMSF.
This is a big decision. How do I know you are the right choice for me?
We would love to talk to you so you can make that decision yourself! We’ve been around for a long time and have seen the good, the bad and the ugly, especially when it comes to bad apples in the investment world.
We work with only the most reputable of providers, and we are completely transparent in all our dealings. We deliver solid advice to help our clients build their wealth and asset base to create a beautiful financial future for themselves and their loved ones.
