Advantages of a SMSF
There are a tonne of advantages to having an SMSF. More and more Aussies are taking charge of their super by getting hands-on with it. And it’s no wonder – with almost a third of all superannuation funds held in SMSFs, this option is perfect for those who really care about their retirement planning and want to make the most of their investments.
Control
It’s all in the name! As you are the member of the SMSF, you will also act as trustee therefore you have total control over the fund and its investments. This will also provide you with flexibility and complete security.
Investment choice
With a SMSF you have the ability to choose from a wide range of investments. These assets include cash, residential or commercial property, shares, managed funds, unit trusts and even cryptocurrency (just to name a few)
Investment choice
With a SMSF you have the ability to choose from a wide range of investments. These assets include cash, residential or commercial property, shares, managed funds, unit trusts and even cryptocurrency (just to name a few)
Tax concessions
Like other industry superfunds, SMSFs also offer significant tax benefits. For instance:
You can make extra contributions through salary sacrificing with your employer
You can claim a tax deduction in some circumstances for your personal contributions
Your SMSF will benefit because all complying superannuation funds are subject to the lowest rate of tax of any entity structure in Australia on income and capital gains
When you begin receiving benefits either as a pension or lump sum, you generally won’t pay any tax on them if you have reached your preservation age
Insurances
Members of a SMSF are able to obtain insurances through their SMSF. This includes total & permanent disability insurance, life insurance, and income protection. The premiums are paid by the SMSF and are tax deductible for the fund.
Insurances
Members of a SMSF are able to obtain insurances through their SMSF. This includes total & permanent disability insurance, life insurance, and income protection. The premiums are paid by the SMSF and are tax deductible for the fund.
Cost effective
A self-managed superfund can be a much cheaper option than other superannuation alternatives. This is attributable to two factors:
Most of the expenses for a SMSF are fixed in nature, whereas other industry funds charge their fees as a percentage of your total balance
A SMSF can have up to 6 members which means you can consolidate all of the super balances together. By doing this there is only one collective fee that is paid, rather than each member paying separate fees
| INCOME | Tax Treatment | |
|---|---|---|
| Accumulation Mode | Pension Commenced | |
| Investment earnings in the SMSF | 15% | 0% |
| Capital Gains – Asset owned under 12 months | 15% | 0% |
| Capital Gains – Asset owned over 12 months | 10% | 0% |
| Concessional contributions | 15% | 15% |
| Non-Concessional contributions | 0% | 0% |