Self-Managed Super Funds

Self-Managed Super Funds

There are more than 300,000 Self-Managed Super Funds (SMSF) in Australia the number continues to grow.

A SMSF is a superannuation fund with one to four members who are also the trustees responsible for the investment strategy and administration of the fund.

There are a great number of benefits for having a SMSF including:

  • All income is taxed at 15% except for Capital Gains which is taxed at 10% if the asset is held for more than 12 months
  • Complete knowledge and control of the investments
  • Flexibility
  • Can borrow funds to buy property under new super fund lending rules
  • Liquidity – recent analysis indicated that sometime in near future major retail & industry funds will experience payout difficulties.
  • Funds may be frozen as you are not the owner of the assets only a member that has an entitlement. A SMSF eliminates this risk.
  • Creation of tax free income stream once retired
  • Ability to pool superannuation with spouse or friend.

However, there are also some disadvantages including:

  • If the fund becomes a non-complying fund, 47 % tax is charged
  • Must have a certain level of funds for it to be cost effective
  • More personal involvement and responsibility

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  • Testimonials

    Graeme & Sue Betteridge
    Phil Griffiths has been accountant for our family company and our three siblings for many years and in 2008 setup our SMSF. Phil guided us through the process of setting up a loan through our SMSF for an investment property. After reading about problems other investors have had with SMSF loans for investments, we realise that his complete professionalism has saved us from pain and tax department problems by ensuring all our financial statements and mandatory reporting requirements comply with…
    Graeme & Sue Betteridge