You can find out the median monthly investment return of the 5 main investment options available in Australian super funds for at least the past 9 calendar years (from January 2014 through to the latest monthly results). You can also check out our SuperGuide article Investment performance: Latest super returns (to ... Read more
How to prepare financial statements for an SMSF Auditor and fill in your SMSF tax return
If you’re a self-managed super fund (SMSF) trustee, you’ll know that you have legal compliance requirements to: have your fund audited by an independent, ASIC-approved auditor each year, and lodge an annual SMSF return to the Australian Taxation Office (ATO), SMSF auditors conduct both a financial and compliance ... Read more
What are typical fees and costs for running an SMSF?
Many SMSF investors are in the dark about what are typical SMSF fees, and whether they are paying a fair price for SMSF advice and services. In an ASIC report from June 2018, 32% of SMSF members found setting up and running their SMSF to be more costly than expected, compared with just 9% of SMSF members who found it ... Read more
SMSF investors still subdued about outlook for markets
Sentiment among SMSF investors remains subdued, despite the strong rebound in the sharemarket in the first few months of 2019. According to a study by research firm Investment Trends, as at March 2019, SMSFs only expected the All Ordinaries to deliver capital gains of 2.0% over the next 12 months. This is a slight ... Read more
The Rule of 72, and how it can help you choose an investment
How long does it take to double your investment? The basic answer is way more simple than you’d expect. By applying The Rule of 72, you’ll be able to answer that question since it is an easy mathematical formula which can estimate the number of years required to double the invested money at a given annual compounded ... Read more
SMSFs: How to start a pension
One of the benefits of having a self-managed superannuation fund (SMSF) is its ability to pay members an income stream, or account-based pension. Of course any superannuation fund can do this, but paying a pension from an SMSF offers members more control and flexibility. The trustee can decide what assets will be ... Read more
SMSF investment rules: Collectables and personal use assets
Collectable and personal use assets are a potential SMSF asset category that have associated superannuation legislation compliance obligations. What are collectables and personal use assets? Collectables and personal use assets include any of the following: Artwork (such as paintings and sculptures) Jewellery ... Read more
What are the asset valuation guidelines for SMSFs?
SMSF trustees are required to regularly value their fund’s assets as a part of ensuring compliance with Australia’s super legislation. Assets must be valued at market value, based on appropriate evidence and data. The Australian Taxation Office (ATO) can review these asset valuations as a part of their ongoing SMSF ... Read more
Starting a pension from your super
After working for decades to build your superannuation, the day finally arrives when you can say goodbye to the nine-to-five and turn your super into a reliable source of retirement income. Depending on your account balance, a super pension can be used to supplement the Age Pension or replace it entirely. The most ... Read more
SMSFs and property: A Super Guide
One of the unique characteristics of self-managed superannuation funds (SMSFs), which make them attractive to some investors, is their ability to invest in direct property. A significant number of SMSFs do invest in direct property and statistics from Class Limited showed this to be as high as 27.1% in 2016. This ... Read more
Guide to the Superannuation Standard Choice Form
The Superannuation Standard Choice Form is an Australian Taxation Office (ATO) document that allows you to choose a super fund that your employer’s contributions will be paid into on your behalf, provided you meet eligibility conditions. Under Australian super legislation, your employer must pay 9.5% of your ordinary ... Read more
SMSFs and capital gains tax (CGT)
Capital gains are profits made on the sale of capital assets, such as property or shares. Capital gains (including those made by SMSFs) are potentially liable for capital gains tax (CGT). What are the CGT rules for SMSFs? Superannuation assets can be either in the accumulation or retirement phases. Assets that are ... Read more
SMSF statistics: 1 million members with $726bn in super
Self-managed super funds (SMSFs) in Australia are privately run super funds that can currently have between one and four members (who must also be trustees of their fund). The government has proposed to allow SMSFs to have up to six members from 1 July 2019, but this is not yet legislated. According to the ATO, the ... Read more
Which asset classes are popular with SMSFs?
Of the many benefits of running your own SMSF, one of the major drawcards is the wider choice of investment strategies that can be established compared to a traditional super fund. Along with the safety of cash and term deposits, SMSFs can also directly invest in Australian and international shares, property trusts, ... Read more
What type of people have SMSFs?
According to the latest Australian Taxation Office (ATO) statistics, more than 1.1 million Australians are members of self-managed super funds (SMSFs). The number has been steadily increasing for several years. SMSFs are privately run super funds that can currently have between one and four members. The government has ... Read more