As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. So it’s no surprise that control is the number one reason people give when asked why they chose to fly solo. SMSFs give their members control over how their retirement savings are invested. Other reasons for ... Read more
How to wind up an SMSF
There are many reasons why you might choose to wind up your self-managed superannuation fund (SMSF) – you’ve retired and you’re not taking a pension, you don’t have the time to manage it efficiently anymore, or a trustee might have passed away – but, just like starting a SMSF, there is a proper process to go ... Read more
SMSFs: Corporate or individual trustee?
One of the first decisions you must make when setting up an SMSF is whether to choose a corporate or an individual trustee structure. Both have pros and cons but whichever structure you choose every member of your fund must be a trustee. The role of trustees Trustees own and manage the fund’s assets on behalf of ... Read more
How to set up an SMSF correctly
So you’ve decided to join more than one million Aussies with a self-managed super fund. Congratulations! Having your own SMSF can be a personally and financially rewarding experience, provided your fund is set up correctly from the get-go. Attention to detail now will avoid penalties and save you time in the long ... Read more
What is the sole purpose test, and how does it work?
As superannuation goes under the microscope once again in the government’s Retirement Income Review, it’s worth pausing to reflect on the reason super exists. At the heart of all the super rules is the sole purpose test. All super funds must satisfy the sole purpose test to be eligible to receive the tax concessions ... Read more
How much time does it really take to run an SMSF… and what are the real costs?
There’s a fight happening in the self-managed super fund (SMSF) sector as industry stalwarts question figures published by the Australian Securities and Investments Commission (ASIC) that suggest it costs $13,900 a year to run a DIY fund. The SMSF Association (SMSFA) asked SMSF administrators BGL and Class to crunch ... Read more
Can you be your own accountant for your SMSF?
Many readers of SuperGuide like to manage as much of their self-managed superannuation fund (SMSF) themselves as possible. We’ve written before about how to find low-cost services but if you’ve got a head for numbers and accounting you might be able to go one step further. Just like you don’t need an accountant to ... Read more
Definitive guide to the $1.6 million transfer balance cap
One of the most significant changes to superannuation – the introduction of the $1.6 million transfer balance cap – became effective on 1 July 2017. The Australian Taxation Office (ATO) estimates the changes will impact only 1% of Australian superannuants, however that 1% needs to be clearly across the Treasury ... Read more
Guide to SMSFs and insurance
If you’ve elected to run your own SMSF, chances are you’ve also taken a proactive and responsible approach to insurance. Regardless of whether you already have life insurance outside super or in a pre-existing super fund, when you start an SMSF you need to jump through a few hoops regarding your insurance ... Read more
How to record SMSF minutes
Part of the responsibilities of being a trustee for your self-managed superannuation fund include taking and keeping trustee minutes that keep a record of all major decisions made by the fund. So, what exactly needs to be minuted and what should it look like? Minutes and resolutions Like most minutes at any kind of ... Read more
The small business retirement exemption explained
What is it? Small businesses have a number of capital gains tax exemptions and concessions available to them when it comes to selling assets. There is the 15-year exemption, which enables business owners to transfer the proceeds from the sale of an active asset owned for 15 or more years if they are aged 55 or over and ... Read more
How to structure your super if you’re going overseas
There are lots of rules that apply to your super if you’re going overseas for work or play for an extended period. If you are a member of an SMSF, it’s essential you understand the restrictions that apply to the fund under these circumstances or you could potentially face a serious reduction in your wealth. The rules ... Read more
How does SAPTO work? (Senior Australians and Pensioners Tax Offset)
A tax offset can reduce the amount of income tax you pay, but it doesn’t mean you get a refund. You’ll also still need to pay the Medicare Levy if you’re not eligible for an exemption or reduction. The Australian Taxation Office (ATO) assesses your eligibility when you submit your tax return. BackgroundThe Senior ... Read more
SMSF options: Should you remain invested or wind it up?
Running a self-managed super fund (SMSF) isn’t for the faint-hearted. Sometimes, an SMSF may make sense at one point, only to find it’s not the best option down the track. For instance, the flexibility an SMSF offers in terms of the types of investments it can hold may be valuable if you once ran your own business and ... Read more
Guide to transition to retirement pensions (TTRs or TRISs)
If you’re on the final stretch to retirement and would love to start winding back your working hours but you don’t think you can afford it, listen up. Ditto if you plan to keep working full-time for a while longer and want to boost your super but haven’t got the ready cash to make extra contributions. Help could be at ... Read more