SMSFs are the fastest growing sector of Australia’s superannuation system. Partly driven by the attractiveness of property ownership. Acknowledged as one of the most tax effective structures for wealth creation, SMSFs offer a number of key benefits, including:
3. Tax efficiency
4. Potential cost savings.
Running your own SMSF not only puts you in control of your superannuation, but opens the door to a far broader range of investment opportunities than can be accessed through public offer or employer superannuation funds. You are able to buy the exact shares you are seeking, direct property (residential or commercial) and are able to access a much broader range of cash and fixed interest investments (i.e. term deposits, bonds, income securities). In recent years, the rules have changed whereby you are now able to borrow to purchase property and shares inside your SMSF as we can personally.
You may, or may not, need help with the actual purchasing of the assets you want to hold in your SMSF. However, a financial planner with accounting capabilities can provide help with your SMSF, from accounting to administration to keeping abreast of the growing legal and ATO requirements.
Superannuation is not just about the investments you make. When it really comes down to it, superannuation is about tax. Super is a low-tax environment that allows you to save for your future. And one way of doing that is to make sure that you optimise the management of your super fund.
Aside from investment knowledge, as Trustee you also need to be across:
• Transition to retirement strategies
• Salary sacrifice strategies
• Strategies to reduce your super tax burden
• Mandated investment strategies that are now required by the ATO
• Insurance inside your SMSF
• How to diversify into areas you may not have sufficient knowledge about
Aspect Wealth Adviser’s SMSF Advice and Administration Process
If you are considering establishing a SMSF, a conversation with a specialist is time very well spent. The first step is deciding on the Trustee structure (individual or corporate), which has many implications for investment, asset protection and estate planning areas. It is far more in-depth than many people initially realise.
With the changing regulatory, tax and investment landscape, many existing SMSF Trustees and Members are consulting with us. Whether you are seeking investment and strategy advice, guidance through the Trustee’s fiduciary responsibilities or admin, tax and accounting services, our Advisers tailor their advice to your specific need. We can explain and help you implement some of the more complex SMSF strategies, including transition to retirement, salary sacrificing, in-specie transfers, concessional and non-concessional contribution strategies and borrowing inside your SMSF to buy residential property. The most common areas Trustees fall into trouble with the ATO is on releasing super, related party investments and not covering all of their fiduciary responsibilities.