At IMTAAA, we can provide you with professional advice in relation to your self managed superannuation fund (SMSF).
– Assistance with fund establishment, running or closing a fund
– Annual compliance and administration
– Advice and assistance with reporting requirements and legislation
Should I setup a SMSF ?
Simply put, it is something which a licensed limited AFSL or AFSL holder can help you establish (we are financial planners). However, Australian securities and investments commission (ASIC) recommends a minimum balance of about $200,000 and if you are wise about your investment choice and have the time to do so, then it maybe it is a worthwhile choice. A SMSF can have four or less members who are trustees and have total control over the super fund and its investment strategy. This control aspect is usually the primary motivator for members to setup their own super fund. At IMTAAA we can help you start, run or close a super fund but are experts in compliance (annual financial accounts and statements, and tax return) with the ability to work with your financial planner and auditor of choice (or put you in touch with) when and if required.
Managing a SMSF
There are serious obligations around running your own super fund. It is generally governed by the trust deed, which is a legal document setting out the rules, rights and obligations. The main rule that a SMSF is driven by is the ‘sole purpose test’, which essentially means that a super fund needs to provide retirement benefits to its members i.e. The funds cannot be used in a person capacity, the funds can only be used by the super fund for the benefit of its members (in retirement).
What can a super fund invest in ?
This advise is general in nature. However, with a set of rules imposed, it can invest in a business, collectables, shares, managed funds, residential and commercial property (all being arm’s length transactions) etc. Once again the trustee/s or a financial planner can advise you on what the investment strategy is likely to be for the super fund, with insurance being an important aspect to consider. The investment strategy can and should change from year to year depending on age, anticipated needs of dependants, liquidity, asset spread etc.