Over the last few years, the Australian Government has made it increasingly attractive for taxpayers to put their money into super. Australia’s superannuation fund industry grew rapidly, but after the GFC investors began to wonder what exactly their superannuation fund manager was doing with their money.

Managing Your Own Superannuation

When you invest your super with superannuation fund, you generally know little about what’s going on apart from a quarterly report you receive. If you look closely, some of these funds are charging you up to 2% just to manage your superannuation funds even if they lose your money. Self managed super funds allow you to take control of your super and make the decisions that affect your future.

How it Works

Setting up a SMSF involves establishing a trust deed and appointing trustees. The trustees of the fund (which will be you if it’s your fund) make all the decisions about what the fund invests in. The investment strategy for the SMSF will guide the trustees in the decisions they make. Whilst it is the trustees who formulate the investment strategy, they are also bound by it.

What Can A Self Managed Superannuation Fund Invest In?

A self managed super fund must invest the fund’s assets for the sole purpose of providing funds for the retirement of its members. There are strict rules preventing self managed superannuation funds from investing in businesses (apart from listed companies) and ‘in house assets’. You should seek specific investment advice and talk to us about what you intend to invest in. Generally speaking, shares in listed companies are OK, but shares in private companies can be a problem.

What are the Compliance Requirements?

Self managed super fund compliance is strict, and this is because of the generous tax concessions afforded to them. The fund must produce an annual set of financials accounts which must be audited by a SMSF auditer. Most accounting firms will charge you thousands of dollars every year, but because we’re specialists we have competitive SMSF fees with unmatched service and advice.

Where Can I Get More Information and Advice

If you have any self managed superannuation fund advice, you can call us on (02) 9965 7261 and we can answer any questions you might have.