Superannuation

SMSFs have become a popular choice for gaining control of your superannuation and can provide opportunities for structuring your affairs in a tax effective manner.

What is a SMSF?

A Self-managed super fund is administered by the ATO and controlled by its trustee(s). The SMSF must be run for the sole purpose of providing benefits to its members when they reach retirement, or to member’s beneficiaries on their death. A SMSF must meet the following conditions.

If the fund has individual trustees

  • It has four or fewer members
  • Each Trustee of the fund is a fund member
  • Each member of the fund is a trustee
  • No member is an employee of another member unless they are related
  • No Trustee is paid for their duties or services as a trustee in relation to the fund

If the fund has a corporate trustee

  • Each member of the fund is a director of the corporate trustee
  • Each director of the corporate trustee is a member of the fund
  • No member is an employee of another member unless they are related
  • No director of the corporate trustee is paid for their duties or services as a director in relation to the fund

 Investment Strategy

All SMSFs are required to have an investment strategy. It is the trustee(s) responsibility to formulate and give effect to the investment strategy. When formulating the fund’s investment strategy the trustee(s) must consider:

  • Risk and return of the fund’s investments
  • Diversification of the fund’s investments
  • Ability of fund to meet liability and cash flow requirements
  • If fund members should be insured

Trustee(s) are required to regularly review the investment strategy.

Advantages of a SMSF

  • Members can participate in the management of the fund
  • Can provide greater range of investment options
  • Provides opportunity for purchasing your business premises
  • Potential cost savings (as running costs are not based on a % of the balance of your fund)
  • Ability to borrow using limited recourse borrowing arrangements

Adam Hunter can provide compliance and administration requirements for setting up, maintaining and closing SMSFs as well as strategic advice to ensure you are getting the maximum benefit from your SMSF including:

  • Maximising contributions to superannuation to take advantage of tax concessions available
  • Structuring asset purchases using  limited recourse borrowing arrangements
  • Pension strategies

If you would like to discuss anything regarding Superannuation contact Adrian O’Malley via email  Adrian@adamhunter.com.au or phone on 99231174.

 

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