How We Can Help With Self Managed Super Funds...

A Self-Managed Superannuation Fund (SMSF) is a small fund, controlled by its members.

The members maintain control by choosing what the fund will invested in and how it will be run.

There are many advantages of using an SMSF when compared to traditional funds, such as:

  • Increased flexibility of investment choices
  • Flexibility in the use of pension income streams
  • Control over your investment portfolio
  • The pooling of resources with other members
  • Access to Centrelink benefits, if applicable
  • Estate planning opportunities​
  • The opportunity to reduce income taxes and capital gains
  • Ability to transfer shares and other securities  into the fund
  • Ability to own real property within the fund
  • The opportunity to borrow or gear an investment, utilising a limited recourse borrowing arrangement, provided the asset is allowed under the SIS Act

We utilise Australia's most advanced Self Managed Super Fund accounting software - Class Super - to provide clients with the best services possible. 

Class Super allows up-to-date processing and access to data feeds and market updates whilst providing compliant reporting capabilities.

Our administration services includes the following...

  • Preparation of annual Financial Statements
  • Preparation of annual Income Tax Return
  • ​Preparation of annual SMSF Audit
  • ​Review of SMSF for potential upgrades and strategies
  • We outsource the annual Audit of the SMSF but is organised internally so you won’t have to worry about a thing!
  • Preparation of Minutes where required, including:
  • ​Pension establishment
  • ​Salary Sacrifice
  • ​Re-contribution Strategy
  • ​Limited Recourse Borrowing arrangements
  • ​Purchasing direct property in the SMSF

Important Things To Consider Before Establishing a Self Managed Super Fund

1. Why are you looking to establish an Self Managed Super Fund?

The most common reasons for individuals to establish an SMSF are 'control' and 'choice'. Control and choice are important concepts to many people and primarily relate to investments and strategies. Normal retail funds do not always provide the range of choices in investments that are available to SMSFs (especially in direct property ownership and sometimes in individual investments in securities).

2. How much money will be available on commencement of the Self Managed Super Fund?

It is widely accepted that $200,000 is needed to ensure the costs of running an SMSF are not prohibitive. Initial start up funds will vary from case to case however. This start up capital typically comes from rollovers from existing superannuation funds.

3. Who will assist with the administration of the fund?

It is important for Trustees to engage specialists to assist with the administration of their new Self Managed Super Fund. The Super Legislation is complex and penalties for breaches can be severe. A trusted adviser can guide Trustees through these complexities and handle all of the administrative duties such as preparation of annual Income Tax Returns, Financial Statements and Audit.

4. What trustee structure will you use?

Trustees can choose to utilise a corporate trustee structure or individual Trustees. Although additional costs are involved, there are many benefits to using a corporate trustee. We can assist to determine the most appropriate structure to suit each individual.

5. What will you do if you become incapacitated?

Consideration should be given to how the fund will operate if one or more Trustees become incapacitated and unable to fulfil their Trustee responsibilities for a period of time. Trustees should consider who they would like to appoint under a Power of Attorney to assume Trustee responsibility in these situations.

6. Have you thought about your investment strategy?

A sound and well thought out investment strategy is crucial to the success of an Self Managed Super Fund. Diversification, asset allocation, risks and returns all need to be carefully considered by Trustees. Recent changes to the super rules now requires Trustees to consider insurance in the fund and whether it is needed.

7. How will you address the fund's liquidity needs?

Trustees must also consider the liquidity needs of the Self Managed Super Fund. These needs include ensuring the fund has the cash available to meet pension requirements, cover expenses of the fund, and making benefit payments upon the death of a member. The selection of an appropriate mix of assets and structured insurance policies can assist in addressing liquidity concerns.

8. Do you understand your responsibilities?

All new Self Managed Super Fund Trustees are required to sign a standard 'Trustee Declaration' issued by the ATO. This form declares that Trustees are aware of their responsibilities and it is therefore important that Trustees spend time to familiarise themselves with these responsibilities. 

9. Have you considered succession planning?

Is the Self Managed Super Fund to be used for the current members only or will new members (such as children) be admitted in the future? If children will become Trustees in the future, then it may be a good idea to involve them earlier so they can get an understanding of how the fund is run and its purpose (bearing in mind an SMSF can only have a maximum of four members).

10. Have you considered your entire estate plan?

Superannuation savings are not an estate asset. Separate consideration needs to be given to Super Death Benefits and how they are distributed to beneficiaries