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
A guide to SMSF audits
Self-managed super fund (SMSF) audits are mandatory in Australia and must be conducted by an auditor who is registered with the Australian Securities and Investments Commission (ASIC). This auditor must be independent (i.e. not have any financial interest in the SMSF, nor have any personal or business relationships ... Read more
SMSF investment rules: What every trustee should know
An SMSF is a very attractive superannuation savings vehicle but it also comes with plenty of responsibility for anyone that signs up to being a trustee. While most of the time people choose an SMSF because of the freedom of investment choice it provides, it’s important to understand the rules around what you can, and ... Read more
How super works: A beginners guide to superannuation
Simply put, superannuation (or super) is money you put in a super fund while you are working to provide income later in life when you retire. Given the average Australian can expect around 20 years of retirement, and the Age Pension is designed to provide only the most basic needs, the more you can save now the more ... Read more
How to create an SMSF investment strategy (including examples)
Self-managed superannuation funds are required, under the Superannuation Industry (Supervision) Act 1993, “to formulate, review regularly and give effect to an investment strategy.” What is an SMSF investment strategy? That investment strategy needs to take into account the following things: The risk involved in ... Read more
What to consider when looking for an SMSF provider
There are plenty of SMSF service providers available, ranging from those who offer traditional face-to-face services through to purely online providers. The type of provider you should choose depends on factors such as: Your level of knowledge about SMSFs and investments. The extent to which you want (or ... Read more
Is it possible to have two SMSFs at the same time?
Australian super legislation allows you to establish and run more than one SMSF, but it’s important to understand the potential for downsides as well as benefits. More people are considering setting up a second SMSF since the following key changes were introduced to super legislation from 1 July 2017: SMSFs no ... Read more
How to evaluate whether an SMSF is right for you
It may seem like everybody is jumping on the Self Managed Super Fund (SMSF) bandwagon as a new investment vehicle, but the reality is that just under 5% of the Australian population has one. According to the Australian Tax Office, at September 2018 there were just under 600,000 SMSFs with a total of 1.125 million ... Read more
What is a self-managed super fund (SMSF)?
As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. SMSFs allow their members to have control over how their retirement savings are invested. According to the latest statistics from the Australian Taxation Office (ATO), there are nearly 600,000 SMSFs in existence ... Read more
SMSF expertise: 3 ways to run your DIY super fund
The practice of calling self-managed super funds, ‘DIY super funds’ upsets the regulator (the ATO), and also concerns many of the service providers making a living from helping individuals set up, and run, self-managed super funds (SMSFs). The key message emanating from the SMSF industry is that you can’t possibly ... Read more
Super for beginners: 8 steps to super success
Merely thinking about your super means you’re straddling the first major hurdle that most Australians face when planning (or not) for their retirement and looking into your future. As an employee, you have your employer helping you with your retirement plans by making compulsory super contributions (Superannuation ... Read more
ALP’s franking credits policy targets shareholders with low taxable incomes
“Having a non-means tested government payment solely on the criteria that you own shares and giving people a refund when you haven't actually paid income tax for the year that the refund covers, what's the economic theory behind that?" asked Opposition Leader Bill Shorten recently, and reported by Phillip Coorey in the ... Read more
Excess franking credits: Shorten shortchanges millions of retirees
Note: A version of this article was first published in April 2018. We have updated this article with further detail on the ALP’s proposed ban on excess franking credits refunds. On 13 March 2018, the leader of the Opposition (Australian Labor Party) drew an ideological line in the economic sands and threatened the ... Read more