OUR SMSF SERVICES
Auditax Accountants offer wide array of SMSF Accounting Services.
Our team consists of qualified Chartered Accountants who provide tailored financial advice in relation to all your Superannuation matters including Self Managed Superfunds.
Auditax – SMSF Accounting Experts
Our SMSF Accountants do all the heavy lifting, while you enjoy the benefits of your investment. You will never have to bother with compliance, auditing, tax filing, and other administrative aspects of an SMSF with our help. You get to have full knowledge that you’re in complete control of your future and that of your beneficiaries. With Auditax Accountants, SMSF Accounting has never been easier.
For more information on SMSF Setup, SMSF Compliance or SMSF Audit, please select one of the options below:
Saving a percentage of your income for retirement sounds like a great idea until you realise the $100,000 you have tucked away today may not buy as much 10 years into the future. A great nest egg needs to be resistant to inflation, securing its future value.
A Self Managed Superfund (SMSF) may be your key to securing your financial future when you retire.
What is an SMSF?
Think of an SMSF as a do-it-yourself superannuation fund. Like most DIY projects, you’re in charge of every aspect of the fund, and for the most part, you and other fund members fly solo. As a trustee of the SMSF, you decide on how your retirement savings are invested. You don’t have to do a lot to start an SMSF other than creating a trust and appointing two to four individual or corporate trustees. The trustees are ultimately responsible for the management of the fund.
What benefits does an SMSF offer?
Most people opt to set up an SMSF for the degree of control it provides because you and other members of the SMSF decide on the best investment decisions to maximise benefits. Since setting up an SMSF gives you full control over investment decisions, you are not at the mercy of a fund manager you don’t even know, constantly praying they don’t blow up your investment. Some of the benefits include:
- Variety of investment
- SMSFs offer a range of investment opportunities as trustee can have direct shares, cash account, fixed-term deposits, investment income, purchase property and funds in the international market.
- Tax strategies
- SMSFs are also helpful in getting concessional tax rates. 15 % tax on investment is copped in the accumulation phase and in the pension phase no tax is imposed. They are also exempt from the capital gains tax. It can help you grow your super savings and lower tax expenses.
- SMSFs allow various members at a time to run and manage a blend of accumulation and pension accounts. You can adjust your investment mix according to your requirements.
- SMSFs offers significant transparencies that allow trustees to match their personal goals with their investment decisions. Whether you want to purchase real estate, shares, and do investments in the funds, SMSFs offer a platform to understand where your money is being invested, with complete visibility over performance and tax treatment.
- The cost of managing SMSF may not be as much as you think. The trustee needs to lodge an annual tax return, organise an audit, and pay ATO fees annually. As as your funds grow, it can be quite cost-effective. Cost depends on the amount of funds you are managing and the cost to get professional support. Our compliance services include the Annual SMSF Tax Return, SMSF Audit and ATO fees.
- Superannuation assets
- SMSFs also allow the trustee to combine their superannuation assets with other members such as partners or family members. This can create a larger fund balance, which increases the fund’s assets and investment opportunities under single fees.
How to Set Up an SMSF?
Being in charge of the investments your fund opts into beats having a professionally managed fund where someone else makes those decisions for you.
But setting up an SMSF ceases to be an attractive prospect for most people when they realise the sheer amount of effort involved including:
• Choosing whether to have individual trustees or a corporate trustee;
• Creating the trust and a trust deed;
• Checking if your fund is an Australian superfund;
• Registering the SMSF and getting an ABN;
• Bank account setup;
• Getting the electronic service address; and
• Preparing an exit strategy.
You need a trusted advisor to figure out the best setup strategy and Auditax Accountants have a lot of experience in setting up an SMSF. From paperwork to handling SISA and SISR compliance matters, we will ensure your SMSF gets the best possible start. Our ongoing compliance services will also lead to a smoother transition from setup to regular operation.
The Bottom Line
It is a private super fund you can manage yourself and will give you more control over how your retirement savings are being invested.
The setting up of the SMSF is a big decision and comes with ongoing legal compliance responsibilities, which may be costly and take time. To understand whether an SMSF is a good option for you depends on circumstances such as:
- Your available super balance for investment
- How much investment information and free time you have to manage your funds personally
- What kind of assets you want to invest in.
It is advised to seek professional guidance to understand whether setting up an SMSF is appropriate for you or not.
What does SMSF stand for?
SMSF stands for ‘Self Managed Superfund’.
What is an SMSF?
SMSF is a self-managed super fund structure that offers numerous benefits to its members upon retirement. Think of an SMSF as a do-it-yourself superannuation fund. It can be established between one to four members and the trustee will have complete control while tailoring the funds to satisfy their individual needs.
How to set up an SMSF?
Setting up the SMSF fund is a very easy and structured process. It mainly depends on the type of fund you are establishing. In some cases it requires professionals advice to understand whether your fund is eligible for tax concessions or not. You can also receive contributions and it is very simple to administer.
Who can be a member of an SMSF?
All SMSF members must be its trustees – If the fund chooses to get a corporate trustee, all the SMSF members must be a director of the company concerned. That company must be registered with the Australian Securities and Investments Commission (ASIC) and all directors of that company also be a member of its corresponding SMSF.
SMSFs can currently have up to four trustees/members. To be eligible to become a member of an SMSF, the member must consent to becoming a trustee and is eligible to accept their responsibilities by signing a trustee declaration. SMSF members cannot:
⦁ Be currently bankrupt or insolvent under administration;
⦁ Be previously disqualified as an SMSF trustee by a court, the ATO or APRA;
⦁ Have ever been convicted of a dishonest offence in any state, territory or a foreign country.
People under the age of 18 can also become members when they are represented by a trustee who agrees to act on their behalf. That is generally a parent or guardian.
How does an SMSF work?
Members manage SMSF funds by making timely investment decisions. It’s legally required by the SMSFs to must have a documented investment strategy. That investment strategy satisfies the sole purpose test by the Australian government and used to guide trustee decision-making.
There are various factors to consider while developing an SMSF investment strategy. You must keep in mind the individual characteristics of fund members, such as their age, current financial situation, and risk profile.
Get to know the benefits of diversifying the fund’s investments to reduce risk and invest them into various kinds of funds at a time. Liquidity of the assets that can be converted into cash to pay future member benefits when required insurance of members to ensure appropriate coverage in case of default.
Can I live in my SMSF property when I retire?
People set up a self-managed super fund (SMSF) to purchase a residential property after retirement, but an SMSF is not the most effective way to own a home. The Australian Taxation Office (ATO) has imposed strict regulations according to SMSF properties, even for the trustees who are close to their retirement. And the breach in the rules could lead to fines and taxes.
In order to legally live in the property, you need to fulfil the required conditions by the Australian government. If a trustee has purchased the property through an SMSF loan, they also need to get the approval first.
Setting up an SMSF does not end with the creation of a trust and appointing trustees.
There are a lot of moving parts within an SMSF and strict regulations that apply. As a member of an SMSF, you’re in charge of every aspect of the fund. That means filing taxes, searching for investment opportunities, and every other responsibility assumed by a professional fund manager. Here’s a glimpse of what you’ll be doing after setting up an SMSF:
- Filing tax returns
- Managing fund investments
- Cashing benefits to members
- Filing annual returns
- Appointing an auditor
- Ensuring compliance to superannuation and taxation legislation
Those are just a few things you’ll be doing as an SMSF trustee, enough to make anyone come out of retirement. Most of these roles are assigned to a single professional in a professionally managed fund. Having four people attend to these obligations is asking a lot of them.
With our help, you can have the best of both worlds. You can enjoy the control that comes with being a trustee of an SMSF without the responsibilities.
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(AFTER HOURS BY APPOINTMENT)