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
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
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
How much super do you need to set up an SMSF?
How much super you need to set up an SMSF is very contentious issue. It has been the subject of considerable analysis from the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC) and the Productivity Commission. However, there are still no clear answers. In this article, we’ll ... Read more
SMSF compliance: A guide to trustee responsibilities
Self-managed super funds (SMSFs) are privately run superannuation trust structures that are managed by trustees. All of the members of an SMSF must be either an individual trustee of their fund, or a director of the corporate trustee of the fund (if the SMSF has been set up with a corporate trustee structure). All ... 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
SMSFs: Trust deed health check for 2019
A self-managed superannuation fund’s (SMSF’s) trust deed is one of its most important assets. While legislation sets out what trustees must not do, the trust deed specifies what a trustee is allowed to do. Now’s the time of year to perform the yearly review of the deed. Experts say it can be the ‘make or break’ point ... 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
Estate planning, super and SMSFs: Getting your house in order
Estate planning is often overlooked or neglected by superannuation investors. A broad and complex topic, it can be made easier by breaking down the key elements. This article won’t address all financial and legal issues in depth, especially for non-super assets. Instead, in the context of SMSFs, we will highlight some ... 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
Guide to SMSFs and insurance
SMSF trustees must consider whether to take out appropriate insurance cover for each member of their fund as part of preparing their investment strategy. It’s a legal requirement for all super funds (including SMSFs) to prepare a documented investment strategy during the SMSF's set-up process. This strategy ... Read more
Guide to SMSF administration, reporting and record-keeping
SMSF trustees have a number of administrative, reporting and record-keeping obligations to ensure their fund’s compliance with superannuation and taxation legislation. Compliant super funds are eligible for the tax concessions available under Australian superannuation law. Member contributions and fund earnings for ... Read more
Guide to the ATO SMSF supervisory levy
The supervisory levy is an annual payment that all SMSFs must pay to the Australian Taxation Office (ATO). How much is the ATO levy? Currently, the annual SMSF levy is $259. However, it’s important to note that this levy must now be paid in advance (i.e. for the following financial year). Prior to 1 July 2013, the ... Read more
Guide to SMSF trust deeds
An SMSF trust deed is a legal document that outlines how the fund will be set up and how it will operate. An Australian SMSF must be established with a trust deed that is compliant with Australian superannuation legislation. Why is an SMSF trust deed necessary? An SMSF must be set up as a trust. A trust is a type of ... 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