What is a Self-Managed Superannuation Fund?

Simply, a Self-Managed Superannuation Fund (SMSF) is another way of saving for your retirement in a concessionally taxed environment (15% on investment earnings in the accumulation phase and 0% when in the pension phase).

The difference with a Self- Managed Fund is that you control the investment and management decisions of the fund.  For example, you decide which bank account, trading account, shares, managed funds, residential or commercial property, cash, term deposits, etc you wish to invest in.

The members of the SMSF are usually also the trustees. This means the members of the SMSF are responsible for complying with the super and tax laws.

Who can have a SMSF?

To be eligible you must not:

• Be a registered bankrupt
• Have previously been disqualified as an SMSF Trustee

What are some of the benefits?

• Greater flexibility with tax. SMSF have greater flexibility in implementing tax and retirement strategies.
• More investment options. They can invest in many of the products available to public funds, as well as some products that aren’t.
• Potentially lower fees on higher balances. The 2020 report by Rice Warner for the SMSF Association found that with a balance of $200,000 or more provided equivalent value at all levels of administration.
• Estate planning flexibility. For example, one benefit is that a member can pay their balance to a dependent as a pension, allowing the SMSF to continue (therefore no forced sell down of assets).

How can we help?

Shakespeare provides advice and support through the full process of the SMSF setup, rollovers, insurance, compliance, administration and if required investment advice.

Contact us if you would like further information about Self-Managed Superannuation Funds.