In the last financial year, more than 25,000 self managed super funds were formed in Australia. Since 2007, the benefits of self managed super funds for those approaching retirement has become too good an opportunity to pass up. Self managed superannuation funds give the opportunity for many taxpayers to dramatically reduce their tax, and offer a completely tax free revenue stream for the over 60′s so you can enjoy retirement years tax free. By increasing your super contributions, you can grow your net worth in a tax effective environment.
Setting up a Self Managed Super Fund
The benefits of a self managed super fund are clear. You receive generous tax breaks whilst growing your net worth in a low tax environment. When setting up a self managed super fund, there are a lot of issues that need to be considered. You need to decide who the SMSF Trustees and members are going to be, and what the investment strategy is going to be. It is a good idea to think about when you plan to retire, and what it is you want to do. Perhaps you want to keep on working, in which case your investments may be involve some commercial rental property.
Self Managed Super Fund Compliance
Unfortunately, managing a self managed super fund involves a lot of compliance and the rules are both arduous and complex. So long as a smsf is run according to the tomes of legislation governing it, then there is not problem with smsf compliance. If the fund breaches the law, then it can be deemed non-complying, and be taxed at 46.5% instead of the attractive 15% of complying funds. You need an expert to prepare financial accounts and tax returns, and they must be professionally audited. You must ensure the fund acts within the law and according to the deed, and the fund must always pass the sole purpose test.
Self Managed Super Fund Audit
Your SMSF must be independently audited by someone who is suitably qualified to do so under the Superannuation Industry Supervision Act 1993. We offer a self managed super fund audit service through our trusted network of auditors.
Call us now and we’ll be happy to answer any SMSF questions you might have.
Have a question about setting up or running a self managed super fund? Not sure whether a SMSF is right for you? Call us now on (02) 9965 7261 and we’ll gladly help you with your queries for no charge.