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The Real Story With Self Managed Super Funds

Self-managed superfunds provide a way for Australians to have better control of their retirement investment accounts. Superfunds, technically known as SMSF or self-managed super fund, pool investors' money together in one large account. The most popular investments are Australian-listed shares plus term and cash deposits. Learning as much as you can about this topic can protect you and your finances. You must understand the pros, cons and applicable tax laws as set forth by the Australian Taxation Office.

To efficiently operate a self-managed superfund, you must have a thorough understanding of the applicable tax laws. You must understand regulations explaining setting up, operating and winding down a superfund. Regulations are in place discussing contribution, reporting requirements, administrative responsibilities and filing responsibilities. The Australian Taxation Office operates a website that contains a wealth of information to help you better understand what is expected of you and your fund. Taking advantage of the site's rate schedules, calculator and forms provides a convenient way to better manage your account.

A key to operating a successful self-managed superfund is segregating your funds. According to Australian tax laws, you must separate your investment funds from the business and personal affairs of fund members. You must operate your fund with the best interest of your fund members in mind. And, you must comply with applicable laws to do so.

A number of professionals are specially trained in handling Australian superfunds. Experts range from tax agents to accountants. To assure accuracy and legality of superfund operations, each fund is audited annually by Australian Taxation Office-approved auditors.

A major drawback to operating a self-managed superfund lies in the fact that it can be cumbersome and too detail-oriented for the nonprofessional. Some investors may feel embarrassed to ask their tax or investment professional about important concerns. To operate efficiently in the self-managed superfund field, you must have a thorough understanding of the applicable tax laws. Even though the majority of trustees are individuals,these same individuals may lack professional competence in servicing the accounts. You may believe that you possess the skills needed to handle your account, but if you lack the ability to fully understand the complicated Australian tax laws, you may put yourself in jeopardy.

Being a well-informed superfund investor plays a key role in protecting you, your family and your financial future. Do your part and watch your money work for you.

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