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What
Is A Self Managed Superannuation Fund (SMSF)?
An SMSF, (sometimes referred to as an Excluded
Superannuation Fund, or DIY Fund) is a superannuation fund with
fewer than five members, all of whom are usually family or business
related.
All
Trustees must be members and vice versa up to a maximum of 4 with
the exception of a single member fund. If you only want a single
member fund then you must have a second Trustee (all Funds must
have a minimum of 2 Trustees).
What
Are The Advantages Of An SMSF?
SMSF's give members unique control of their
investments (within the legal framework). Because of this members
feel more comfortable about having their money in superannuation
They are generally very cost effective, and present opportunities
for more meaningful integration of super into a member's total
investment portfolio and retirement planning.
Who Should Have An SMSF?
- SMSF's
are more cost effective when their assets reach about $100,000,
so investors aiming to reach this target in a short timeframe
should consider setting one up.
- Investors
looking for control over their Funds assets who are prepared
to work at managing their investments.
- Executives
or professionals with superannuation choice.
- Retirees
wishing to start a pension.
- Family
groups wanting to take advantage of estate planning.
What
Can My SMSF Invest In?
To some extent rules, but mostly guidelines
are laid down in the relevant legislation. The funds must be invested
with a view to providing for the member's retirement. INVESTMENT
RULES
Ask
yourself -"Would a reasonable person make this investment with
superannuation money?" Provided the answer is yes and all other
regulations are complied with then you can proceed.
Can
I Have A Pension Through My SMSF?
Yes. SMSF's can pay allocated or complying
pensions. MORE
INFORMATION
What
Do I Have To Do On A Regular Basis To Run My Own Fund?
This depends entirely on how actively you
wish to trade your investments. As your administrator Superannuation
Services Pty Ltd will take care of the rest of your paperwork,
making the entire process as easy and hassle-free as possible.
The
Trustees are responsible for running the Fund and making and actioning
all investment decisions. As administrators we mainly get involved
at the end of the financial year when we request copies of all
of your Funds statements and transactions. MORE
INFORMATION
However, we do answer any queries you may have during the year
in relation to superannuation and what you can and cannot do with
your Fund. We would encourage you to check with us first.
The
consequences of breaking the rules are dire.
As
administrators we ensure that your funds paperwork is in order
should your fund be audited by the ATO.
On
an annual basis we collate your funds financial information (which
you send to us) and prepare financial statments, tax return, any
other applicable returns.
Our
fee also includes surcharge reporting PAYG reporting, and any
rollover/ETP paperwork (if required).
We
do not advise on where/how to invest your super fund money but
we can explain the investment rules. To help ensure your fund
complies with the legislation we do have a number of contacts
- financial planners or stockbrokers who can assist you in this
area if required.
How
do I set up my own SMSF?
Firstly do you have sufficient funds to make it viable ? We recommend
a minimum of $100,000.
To
set up a fund you would need to complete our APPLICATION
FORM and forward a deposit of $330 to our offices.
We would then instruct the solicitors to draw up the documents.
We
forward these documents to you for signing which you then return
to us. After we have had your Trust Deed stamped you are then
able to open a bank account and the fund can operate.
If you are rolling money over from another institution then that
could take a minimum of eight weeks as some rollover institutions
will only pay out a rollover to your Fund on the production of
your Funds Australian Business Number and "Regulation Letter".
It is currently taking the ATO 8 weeks to process these.
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