A Self-Managed Super Fund (SMSF) is a legal tax structure with the sole purpose of providing for your retirement and is regulated by the Australian Taxation Office. It is run by the members for their benefit.
The Australian SMSF sector has a market share investment value of over $676 billion in superannuation assets according to the Australian Tax Office as at March 2020. This equates to approximately 25% of the $2.7 trillion invested in superannuation. There are around 600,000 SMSFs operating in Australia with 1.119 million members.
SMSFs don't suit every person and we can help you decide if establishing your own fund is the right option for you.
Self-Managed Super Funds
Running a SMSF however is complex and strictly regulated by the ATO. If you decide to take control of your super savings you must understand your legal responsibilities and the types of investments you make. If you are prepared to put in the time and effort into managing your SMSF the benefits can be significant.
At DSR Partners we are superannuation experts and SMSF auditors and can assist in helping reach your financial retirement goals. We are accredited with RG146 in Financial Services as required by the Australian Securities and Investments Commission (ASIC) for the provision of personal advice.
When it is the right time to set up a SMSF?
This is for you to decide when you are ready for the responsibility, there is no ‘ideal stage of life’ to set one up.
Typically, it is recommended that SMSFs should have a starting minimum balance of around $200,000. The ATO reports a SMSF of this size would cost around 3.26% in administrative costs.
What are the main benefits of having a SMSF?
SMSFs provide the ability to invest in a wider range of products
including property and increase the flexibility of investment
choices and asset selection.
It also gives you the opportunity to own your business' real
property (but not operating assets) in the SMSF, which can
assist with funding and cash flow problems for many
It is easy to become disenchanted with the fees charged by
managed funds and the lack of transparency. This is an
opportunity to take back control.
Should you get advice before setting up an SMSF?
Absolutely! SMSFs are complex and a poorly set up fund can create a lot of issues down the track and these can become costly to reverse or fix up.
SMSFs are strictly regulated by the ATO and Trustees have an enormous responsibility to ensure that the fund is correctly administered, and the members monies are appropriately invested
Good advice can easily add thousands of dollars of benefits over the lifetime of the fund and certainly pays for itself both in the planning stages and then ongoing with structuring and investment advice.
What types of investments are available for SMSF?
Easily understood and safe investments are common as investors want uncomplicated structures they understand and are easily managed. Direct shares, cash and term deposits and property are all popular investments.
With the landscape of superannuation constantly changing you can be assured our specialist staff will provide up-to-date legislation and the guidance and support to help you grow your retirement nest egg.
If you are looking for a trusted SMSF advisor give us a call.