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Self Managed Super Fund Accountants
What is an SMSF?
A self-managed super funds (SMSF) is a private superannuation fund, regulated by the Australian Taxation Office (ATO), that you manage yourself – in simple terms, it’s DIY superannuation. Just like other superannuation vehicles, it is designed to help you save and distribute funds for your retirement.
DIY superannuation is one of the fastest growing sectors in Australia, controlling nearly $700 billion in assets and accounting for around 30% of all superannuation funds. In 2016, 83% of SMSF members were 45 years or older, however for newly established funds (since 2015) the proportion of members aged 35-44 is rising rapidly.
Reference: What is an SMSF?
An SMSF has some fundamental differences that dictate whether or not an SMSF may be right for you. All members must be trustees and are responsible for decisions made about the fund and bear responsibility for compliance with relevant laws.
The significant advantage of an SMSF is that it gives members control, flexibility and transparency of their retirement savings. Members consolidate their superannuation assets, say you and your spouse or parents and their children, to share costs and increase your buying power. However, the fund maintains member balances, as a record of who has contributed what, and investment growth and expenses are allocated proportionately – this is important in case superannuation assets need to be separated or drawn upon.
SMSFs can invest in almost anything*, from term deposit and shares, right property, gold bullion or even artwork and collectables. For example, an SMSF can borrow funds to purchase an investment property – no other type of super fund will allow you to do this. On the flip side is greater responsibility, both legal and financial, and while many owners of an SMSF choose to outsource the management to specialists, a “set and forget” mentality means an SMSF probably isn’t the right solution for you.
Reference: Invest in almost anything!
When is an SMSF viable?
Set up costs and annual running expenses on an SMSF can be higher than other types of super funds, however over the long term and with a more substantial balance, they can be more cost-effective. For example, Create and Protect offer a fixed, flat fee structure as opposed to a percentage-based fee that increases with your balance, as is the case with many retail superannuation providers.
You don’t need to be rich to consider a self-managed super fund, but you do need enough money to make it financially viable. There is no magic figure, however, most experts suggest that around $250,000 is the ideal balance, depending on how much of the fund’s administration you outsource.
In some cases, a smaller balance may be suitable if you are expecting a windfall or rapid growth which can bring the balance of the fund up to a more reasonable level.
SMSFs are also required to undertake an annual compliance audit and tax return, which can add additional expense and it’s important to be aware of this before deciding to set up an SMSF, as they are designed for the long-haul.
How can CREATE & PROTECT help?
If you are looking for an experienced SMSF accountant in Melbourne to help you make sound financial decisions and secure your future, we can help you. Our SMSF specialist advisors are experienced and can help you wisely handle your plans for the future.
SMSFs is one of the most tax effective and flexible investment structures available, however, for the uninitiated, they can be complicated and end up costing you more.
That’s where we come in - CREATE & PROTECT specialise in Self-Managed Super Funds, and we can assess whether an SMSF is suitable for you. By partnering with you, we can assist you with developing a superannuation strategy that can boost your retirement savings and maximise your benefits. Our SMSF investment strategy is planned to suit your unique situation and ensure that you are financially covered for the long term. Avail our service to build a self-managed super fund investment strategy that generates sufficient income.
Through our professional network, we have access to various professionals like accountants, auditors, solicitors and mortgage planners, and can offer our clients a better level of ongoing administrative, investment and compliance support. For all your needs for self-managed super funds accounting services, feel free to reach out to us. We are the SMSF experts you can trust for your financial planning needs.
Our experienced team can administer all aspects of your SMSF, from arranging payments through to liaising with property managers, accountants and tax auditors, we can help you at every step. You may have already started thinking about your retirement and may have even decided the age you want to retire, but do you know if you’re in a position to get there? It’s essential to have a plan because we all know, a failure to plan is a plan to fail.
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