Establishing an SMSF

Self-managed superannuation funds (SMSFs) are established by investors who seek greater independence in managing their super fund and a more hands-on approach over their choice of investments.

An SMSF is a private superannuation fund managed by a group of up to four members and is regulated by the Australian Taxation Office. All members must be trustees (or directors if there is a corporate trustee) and are legally responsible for decisions made about the fund, and its investment strategy and execution. Although many Australians have turned to SMSFs for greater control, flexibility and choice, increased complexities, rules and severe ATO penalties mean they’re not for everyone. 

Ords' financial planning professionals have all the expertise and resources to help you evaluate whether an SMSF is the best solution for you, and to help you establish and maintain your fund.

SMSFs are established for the sole purpose of providing retirement benefits to members and greater control of superannuation fund assets. An SMSF is a tax-effective investment platform (usually with assets over $250,000) which allows for the investment of member contributions and the provision of benefits in the form of either a lump sum or pension on retirement of the member.

An Ords Adviser can work with you to review the following range of benefits in establishing an SMSF:

• Investors may be able to reduce the costs and fees involved in managing their investments
• Investors may be able to broaden their choice of investments and have more control over investment strategies
• Access to tax-effective share trading strategies
• Efficient estate and succession planning
• The ability to transfer existing assets into a more tax-effective environment
• Business owners can buy their own business premises in the SMSF.

There are a number of potential pitfalls in establishing and running an SMSF that you must be aware of. An Ords Adviser can help you assess their relevance and how best to include compliance with them in your investment strategy.

SMSF trustees control the investment of contributions and the payment of benefits, and are responsible for ensuring that their interests as members are protected and that all legislative requirements are legally fulfilled. Members who establish an SMSF must develop, manage and maintain an investment strategy, and manage all contributions and withdrawals.

They must also comply with:

• Superannuation and tax laws, including making sure the money is only used for retirement benefits
• Record-keeping obligations, such as lodging annual statements
• Reporting obligations, including reporting contributions
• Audit requirements, including having the fund audited by an approved SMSF auditor each year. 

Ord Minnett Financial Planners and Advisers are committed to increasing a client’s personal wealth through sound financial-planning strategies, innovative financial solutions and access to leading portfolio administration services. Our experts are constantly analysing new ATO rules and legislation that impact superannuation to ensure our clients are given every opportunity to optimise their financial position through their super.

Contact an Ords Adviser today to help you to develop financial planning strategies and maximise super contributions in a tax-effective manner, to help build your SMSF balance, and ensure you can afford the retirement lifestyle you desire.