Superannuation can at times be a confusing concept to grasp. But have you heard of a self-managed super fund? These types of super funds have become increasingly popular in recent years among many Australians. Here at Secondlook Accounting & Taxation, our Gold Coast team is experienced in assisting our clients with the management of their self-managed super fund (SMSF) and we would like to share this wisdom with you.
Below we have put together a helpful guide explaining the basics of SMSFs.
What is a self-managed super fund?
A self-managed super fund is essentially a type of private superannuation fund that you look after and manage yourself. SMSFs are different from standard types of industry and retail funds that the majority of Australians will use. With an SMSF, you are responsible for choosing investments and insurance. Here in Australia, a self-managed super fund may have up to four members, this will typically include family or friends.
Self-managed super fund responsibilities
As the trustee of an SMSF, there are a few important elements you are responsible for. This includes making investment decisions along with a range of strict administration obligations concerning recordkeeping and completing tax returns. Because there are various technical factors which come into play with managing an SMSF, most individuals will seek assistance from a specialist in accounting and tax reporting.
Benefits of a self-managed super fund
A lot of Australians may be turned away from the idea of an SMSF because of the responsibilities involved. However, many benefits come with opting for a self-managed super fund which should also be noted. Some key advantages of an SMSF include:
- Greater flexibility when it comes to investment control
- Ability to pool your super with three other members
- Flexible estate planning options
- Greater control over your investments can also lead to more effective tax management
Ask Secondlook for help today
Our Gold Coast team is here to assist with your self-managed super fund requirements. For all enquiries, be sure to get in touch with our team today on 07 5530 5118.