SMSF Q and As

If you’re considering setting up a self-managed super fund (SMSF), or you already run your own SMSF, then this section provides easy-to-understand answers to the most popular questions we receive on SMSFs (also known as DIY super funds).

Set out below are all SuperGuide articles explaining SMSF Q and As.

SMSFs: What is the proportioning rule?

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Q: I have come across a statement which refers to a proportioning rule. Could you please explain to me exactly what the proportioning rule is, who it applies to and when it applies, and how you do the calculations for a SMSF?The short answer is: the proportioning rule is a mechanism to calculate … [Read more...]

New rules: SMSFs and life insurance

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Q: I am a self-employed businessman with my own SMSF. I would like to know if I can arrange insurance (s), for example, death cover etc through my fund with the premiums paid from the fund. Could you recommend any companies that may supply these services?The short answer to your first question … [Read more...]

SMSF: If I die young, will my wife pay super tax on the life insurance payout?

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Q: I have a life insurance policy owned by my SMSF worth approximately $2 million. Currently there is only about $80,000 accumulated in the fund. I am 40 years old. If I die tomorrow is my wife able access an income stream from the fund tax-free? For instance, upon my death if this $2 million was … [Read more...]

SMSFs: Can I transfer my life insurance to my DIY super fund?

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Q: I have searched the ATO site to determine if we can have our SMSF pay life insurance for members. I am unable to find whether these things are arm’s length in regard to existing policies or not. There seems no writing to assist with a transition of these items into the fund and then the fund … [Read more...]

Higher concessional contributions cap applies to over-50s from July 2014

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Q: Do you need to be aged 50 at July 1, 2014, or could you turn 50 any time in 2014/2015 to take advantage of the $35,000 concessional cap?A: For the benefit of other readers, I will first explain the background to the over-50s cap. On 5 April 2013, the federal government announced that it will … [Read more...]

SMSF: How much does a DIY super fund cost? (updated figures)

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Note: Article updated in June 2014, and enhanced with an extra table outlining fees for small and large SMSF account balances.This Q&A includes the latest SMSF cost data released in December 2013 by the ATO, and data released by ASIC in September 2013. The next SMSF cost update is expected to be … [Read more...]

Are SMSF audits too expensive? (updated figures)

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Note: Every year, the ATO publishes the average audit fees incurred by SMSFs. This Q&A contains data for financial year ending 30 June 2012 (latest available as at June 2014). We have retained all comments from earlier versions of article. The next update, for compliance data up to 30 June 2013, … [Read more...]

SMSF basics: Can I run two super funds? (2 questions)

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1. Running two DIY super fundsQ: My wife is 58 and retired and she has her own self-managed super fund, where she has rolled over her super funds from various employers. She plans to start her SMSF pension soon. After starting her pension, could she also start another SMSF fund?A person can … [Read more...]

SMSF pension: After making super contributions, when can I convert to another pension?

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Q: I am 67 and work part time, so I qualify to make concessional contributions to our SMSF. I am already receiving an account based pension from my SMSF. The new contributions I make will have to go into an accumulation account. How long do I have to wait before our SMSF can pay another account … [Read more...]