Benefits of an SMSF

Written by Hein Preller , Posted in SMSF Topics

By taking control of your superannuation through a Self-managed Superannuation Fund you can expect to enjoy the following benefits:

Control

SMSF assets are totally under the control of the Trustees. The Trustees are responsible for taking all decisions on where to invest the assets, whether it be in investment property, equities, a managed fund or term deposit. In other words, control lies in the hands of those who actually put up the money – the Trustees.

Low tax

At 15%, SMSFs have one of the lowest tax rates of any entity in Australia. The great thing is that the SMSF tax rate can be reduced even further by offsetting other tax credits. SMSFs are allowed to control exactly when assets are disposed of. This means, for example, that if an SMSF acquires an asset today and it appreciates by xxx% by the time its members retire, it can be rolled over to an allocated or complying pension fund and there will be 0% tax to pay on the realised capital gain of the asset in question.

Free set-up

Superannuation Warehouse provides a free set-up service to make it easy for you to start an SMSF. We even tell you how to do it all yourself. Pure DIY SMSF.

Low fees

An SMSF with Superannuation Warehouse provides you with an extremely competitive fixed-fee structure with certainty on the costs of operating your Fund.

Asset protection

In the unfortunate event of bankruptcy, assets belonging to SMSF members are generally protected from creditors.

Retirement income control

An SMSF provides the highest level of flexibility and control over the distribution of benefits in retirement, whether you wish to take your superannuation benefits in one lump sum, continue to invest, or receive it as a pension, it’s entirely up to you.

Pool together family members’ superannuation

Designed for a Trusteeship of four or less, SMSFs are a great option for a family of husband, wife and two adult children who wish to pool their superannuation together and buy an investment property

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Hein Preller

Hein is a Director at Superannuation Warehouse, specialising in setting up new SMSF's. Hein's company performs all the annual administration tasks consisting of preparing financial statements, lodging a tax return and arranging the audit.
  • shashishekara anantharamaiah

    I am 53 years of age, planning to open a SMSF with my family – wife, son and daughter as individual trust members. We are all Australian citizens and our circumstances as regards SMSF are as follows:
    • My wife, aged 49 years, does not work and will be mainly a beneficiary/ nominee.
    • My son, 25 years of age, is doing higher studies abroad and is unlikely to return to Australia for a few years. He has a small super in Australia which he will transfer to SMSF once it is established. As he is a trader/ investor, he will play a key part in managing our SMSF portfolio through a mix of mostly Australian and some international investments. I will be the only active contributor into SMSF for now, making decisions based on his recommendations/ inputs.
    • My daughter, 22 years of age, is a full time student in Australia and when she commences employment as a doctor in 4 years, she will start using this SMSF to make her contributions.
    I have the following questions:
    1. Information elsewhere in this website indicates that SMSF balance is apportioned to individual members, proportionately according to their contributions. Can a member like my wife (or daughter until she earns) be only a beneficiary or nominee in the SMSF in this case? OR do you expect all trust members to have allocations to them from active contributors, similar to a family trust?
    2. With my son being overseas, actively managing the SMSF investments advising me on related decisions, will we satisfy the residency requirements for the fund?
    3. I will work in Australia for another 5 years and am likely to retire overseas after that with my wife. My daughter will however continue in Australia with active contributions into SMSF, making investment decisions in Australia based on the advice and support of me and my son. Let us assume that my son will keep working abroad, outside Australia. Will the fund remain compliant on residency requirements for the SMSF with only my daughter in Australia?
    4. Can I remain in this SMSF (without further contributions but maintaining the portfolio for further growth) if I retire abroad with my wife? In that event, only my daughter will be continuing in Australia and making active contributions to the fund. In retirement, I wish to make monthly withdrawals to meet my overseas living expenses. Is this possible?
    5. Assuming that the members invest in similar assets (which could be a mix of shares, metals and properties), can SMSF portfolio include overseas property investments? What type of documentation do you need on its growth for your services of SMSF accounting and tax reporting?
    6. Can we arrange life insurance incl. TPD from SMSF for trust members including those that are non-contributing?
    7. Will your answers to any of the questions change if we go for SMSF corporate option?

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We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.