As part of your retirement and wealth creation strategy, you should consider setting up a Self Managed Super Fund allowing you the greatest flexibility available under the law to invest in different asset classes. Common investment options include direct property (residential or commercial), indirect property, shares, managed funds, bullion and index funds.
There are a plethora of strategies related to Self Managed Super Funds available due to the tax differential available – Complying SMSF’s are generally only taxed at 15%, well below other investment vehicles.
These are regulated by the Australian Taxation Office and are allowed
up to four members (often used by families to invest together for retirement).
There are duties imposed upon Self Managed Super Funds such as legal duties
to run the fund correctly and purely for the provision of retirement benefits,
setup an investment strategy and keep full accounts to be reported annually to the ATO.
An SMSF is a good way for a family (remember limited to four people) to pool their investments in certain circumstances. Let’s take the example of four brothers, Matthew, Mark, Luke & John. They all have varying amounts of Super, and all decide to open up an SMSF for their future. Matthew via his job as a share broker works on the share portfolio investment side of the fund while the other three brothers as builders select the property assets of the fund.
Given they all have varying degrees of ownership in the fund they all receive a rate of return based on the percentage of assets they own so there can be no disputes. Their accountants track the progress of the investments and give them their updated unit holdings each year. By self-managing and pooling their talents they have a diversified, secure and far cheaper alternative than standard retail funds offer.
All structure setups are done in tandem with some of Adelaide’s top legal professionals to ensure your structure minimises taxation, provides for asset protection and factors in your estate planning needs.
Typically the following costs are related to
running a Self Managed Super Funds:
• Accounting fees starting from $600 + GST per year depending on the size
of the fund, the information presented and the transaction level.
• Audit fees from $400 + GST per year as Self Managed Super Funds
are required to receive an annual audit.
• Bank fees and charges depending on your financial institution.
• The Australian Taxation Office (ATO) charges an annual SMSF levy
of $259 (This is the fee for the 2017 Financial Year and may change in the future)
• An annual ASIC fee of $47 for the corporate trustee company
(again this will change slightly each year).
Thus it is only worth self-managing your superannuation if you have
sufficient funds in your super fund to justify the costs involved
and ensure it does not cost significantly more than a standard commercial fund.
If you are unsure if you have the funds to justify an SMSFcome in and have a chat with one of Bartley Partners’ accountants
to determine if this entity is right for you and your family.
Give us a call on (08)8338 1033
we’re happy to talk through solutions best for you.