Self-Managed Superannuation Funds (SMSF)

Gotsis Rubic & Barbariol can assist you with you with your Self-Managed Super Funds (SMSFs), as we have helped many of our clients. This includes establishment, registration and compliance of SMSFs as well as acquisition of property and investment strategies. To start with, below is some information on their benefits and compliance which will help you.

As Superannuation is now among the largest asset of many Australians, you may decide to manage this critical investment yourself through the use of Self Managed Superannuation Funds (SMSF). AS a result, SMSFs is one of the largest and fastest sector of the superannuation industry.

If you are a trustee of a SMSF, managing your own fund and making sure that you undertake this correctly and in line with the many rules and regulations that govern superannuation is critical. For example, the The Australian Tax Office (ATO) does not allow superannuation funds to claim expenses, paid on its behalf by the employer, as a contribution to the fund.

SMSF Compliance
While you and other members of your SMSF now have the opportunity to manage your retirement savings, as a trustee you are ultimately responsible for running the fund and complying with superannuation and tax laws. You must ensure that:

  • a documented strategy exists
  • the fund meets its investment strategy (make sure you consider risk, return, diversification and the ability of the fund to make payments as needed)
  • the fund adheres to the sole purpose test
  • no benefits have been paid out prior to the retirement of members
  • investments are at arms length and appropriate to the fund
  • the fund is meeting its compliance and reporting obligations

SMSF Benefits
This said, SMSF provides many great benefits including:

  • You can choose where you wish to invest to achieve the best returns. This enables you to invest in options not currently available such as property, direct shares, wholesale managed funds and derivatives
  • A reduced tax rate with 15% being the maximum payable on contributions and earnings in a SMSF
  • Imputation credits on dividends received can reduce the overall tax to be paid, excess credits are refundable.
  • SMSF are now able to buy real property which can be leased out to the family business
  • Earnings received during your pension period are not taxable
  • Your assets can be rolled over into the pension period on retirement and there will be 0% tax on any capital gains
  • Draw a pension from your superfund on retirement and receive valuable tax concessions