Take control of your future with a self-managed super fund (SMSF)

When you establish an SMSF, you take the reins – you decide where the fund’s money goes, and it’s your duty to adhere to relevant superannuation and tax laws. This is a significant financial decision, and it requires dedication and expertise. 

The primary aim of an SMSF is to provide retirement benefits to its members. As the trustee of the SMSF, every decision you make should prioritise the financial well-being of the members.

SMSFs are managed by individuals who act as trustees, or directors of a corporate trustee. The trustees, who are also members, are responsible for managing the fund, making investment decisions, and handling the legislation and administration tasks that are involved in managing the SMSF.

The purpose of an SMSF is to provide financial benefits to each of its members in retirement and their beneficiaries upon death.

SMSFs provide individuals with greater control and responsibility over their superannuation investments. However, trustees must be aware of their legal responsibilities to manage the superfund lawfully. It is recommended that those with a SMSF seek assistance from professionals such as our accountants at Breathe. With our expert team, we’ll help you achieve your specific goals.

There are many benefits of a self-managed super fund including:

1. Investment control: choose where your money is invested. Whilst retail or industry funds make this decision for you, a SMSF gives you complete transparency. 
2. Tailored investment options: SMSFs offer a wide range of investment options beyond what is typically available in retail or industry superannuation funds. Trustees can invest in various asset classes such as cash, shares, property, managed funds, direct investments, and more. 
3. Cost efficiency: for those with larger superannuation balances, an SMSF may offer potential cost savings compared to retail or industry funds. As the fund grows, the fixed costs associated with running an SMSF, such as accounting and administration fees, may become relatively lower compared to the percentage-based fees charged by other funds.  
4. Greater flexibility: overall, SMSFs offer greater flexibility in the management of assets. For example, trustees can utilize strategies such as binding death benefit nominations, pension payment strategies, and the option to retain assets within the SMSF for future generations.  
5. Family membership: for family members who wish to pool their superannuation savings and manage their investments together, SMSFs allow for six members to jointly manage their investments. This allows for greater collaboration, shared decision-making, and potential tax planning benefits.
6. Potential tax advantages: as mentioned briefly above, there are potential tax planning benefits for SMSFs for joint funds. Trustees have control over the timing and amount of contributions, as well as their ability to manage the tax treatment of investments within the SMSF. 
7. Control and transparency: money and your retirement are an important matter that requires professional oversight and monitoring. Many individuals choose SMSF for this benefit.

Costs for a self managed superannuation fund vary depending on the situation of the trustee/s involved. Each situation is unique and therefore, costs will vary between one fund from the next. Generally, those setting up a SMSF can expect to pay accounting fees, audit fees, investment fees, administration costs and potential legal fees. Book a consultation with Breathe Accounting to find out the costs you can expect for a SMSF.