Benefits of Self-Managed Super Funds (SMSFs)

A self-managed super fund is a superannuation fund essential in the Australian retirement system. It aims to provide its members with a means to accumulate wealth for retirement. SMSF members act as trustees and have control over the investment made by the fund. 

The Australian Taxation Office (ATO) has released a statistical report indicating that there are nearly 6000,000 SMSFs in Australia. More than 1.1 million Aussies are also members of this scheme. 

Who can be a member of an SMSF?

All SMSF members must be the trustees of the fund. If a corporate decides to become a trustee of the fun, all of its SMSF members must be its director. Additionally, the company must be registered with the Australian Securities and Investment Commission (ASIC). 

Typically, an SMSF can have four to six trustees. A person must be authorized to become a trustee and acknowledge their responsibilities. However, individuals cannot engage with SMSF if they are: 

• registered as bankrupt
• have been disqualified as an SMSF by the ASIC or the court
• have an employer/employee relationship with another trustee, except if they are relatives

Benefits of SMSF

Great Control and Flexibility

SMSF members have control over investment decisions made by the fund. They can improve their investment strategy to suit their financial goals and risk tolerance. 

Limited Number of Members

An SMSF can have a maximum of four to six members. It means there are relatively small SMSFs focused on providing retirement benefits for a specific group of individuals. 

Tax Benefits

With the help of SMSF auditing Australia, trustees can enjoy concessional tax treatment, including lower tax rates on investment earnings and potential tax deductions on their contributions. 

Choices of Investments

SMSFs allow members to choose their investment options, including shares, property, funds, and more. However, it is essential to adhere to the investment strategy and follow the rules established by the Australian Taxation Office (ATO)

Administration

Running an SMSF involves administrative and financial tasks, such as audit and assurance, record-keeping, and reporting. Trustees can choose to perform these duties themselves or engage with the services of the SMSF experts. 

DFK Laurence Varnay provides full-service SMSF administration to achieve your financial and retirement goals. We are committed to helping you and understanding your priorities until you obtain your business success. 

Our advisors are ready to discuss how we can help you. Call us at +61 (01) 9264 5400 or complete our online form.