A SMSF (Self Managed Super Fund) allows Memberse to control their own super investments for retirement purposes. A SMSF can have from 1 to 4 members in the Fund. Each Member must be a Trustee or Director of the Corporate Trustee. Trustees decide how the SMSF will operate and what investments the SMSF will invest in. If you set up a SMSF, you’re responsible for running it in accordance with the law and reporting to the ATO on its operation.
The advantages of a SMSF are as follws:
Control – An SMSF provides maximum control over your superannuation assets and allows you the flexibility to decide how your funds are invested and how the fund is to operate.
Investment Choice – An SMSF can be structured to meet the specific investment needs of Members and control over investment strategies. The SMSF can invest in property, shares, cash or any other assets that suits the investment objectives of the fund (provided it meets the sole purpose test).
Tax Concessions – Investing in an SMSF has tax advantages that make superannuation a powerful wealth creation strategy.
There is a range of booklets issued by the ATO that you can read through to consider if a SMSF is appropriate for you. To access this list, click here.
It takes between 2 and 12 days to set up a new fund and for more info on this, click here.