Experience you need. Results you want.
Introduction to Self-Managed Super Funds (SMSF)
What is a self-managed super fund?
A self-managed super fund (SMSF) is a type of superannuation fund in Australia. Superannuation funds, commonly known as "super funds," are designed to help Australians save for their retirement.
An SMSF is unique because it's managed by its members, who also act as trustees of the fund. This means that the individuals involved have direct control over the investment decisions and management of the fund's assets. An SMSF can have a maximum of four members, all of whom are generally also the trustees of the fund.
Key Features of an SMSF
- Investment Control: Members have the flexibility to choose where to invest their superannuation money, such as in shares, property, managed funds, and other assets, based on the fund's investment strategy.
- Ownership of Assets: The SMSF can hold various types of assets, including residential or commercial property, cash, term deposits, shares, collectibles, and more.
- Responsibilities and Compliance: SMSFs come with significant responsibilities and obligations. Trustees are responsible for managing the fund according to the law, maintaining accurate records, and ensuring compliance with regulations set by the Australian Taxation Office (ATO).
- Taxation Benefits: SMSFs enjoy certain tax benefits, such as concessional tax rates on contributions and investment earnings. However, they must comply with the tax laws and meet specific criteria to receive these benefits.
- Retirement Benefits: Funds accumulated within an SMSF are primarily intended for retirement benefits. There are regulations regarding when and how members can access these funds, generally upon reaching the preservation age and meeting specific conditions of release.