Self Managed Super Funds

What you need to know

What are SMSFs?
SMSFs are superannuation funds which are established and operated by the trustees of the fund. Under the superannuation rules, the members of an SMSF are required to act as a trustee of the fund or as a director of the fund’s corporate trustee, and are legally responsible for managing the fund in accordance with a strict set of legal requirements.

Structure of an SMSF
An SMSF is composed of a number of key elements. These include:

• the trust deed - the legal document that sets out the rules of the fund
• the trustee - is legally responsible for managing and administering the fund in accordance with the trust deed and the superannuation laws. The trustees make all the investment decisions.
• the members (max of 4) - are required to act as trustees and have their superannuation monies in the fund.
• the investment strategy - specifies the fund’s investment objective, how the trustees should invest the fund’s assets and whether it will hold insurances for members.

What are the benefits of SMSFs?
Because SMSFs are self-managed they can be more flexible and give members more control over how their super savings are invested and managed. For example, SMSFs can allow members to:

• develop an investment strategy specifically designed to meet their needs and circumstances and that takes into account their personal investment preferences
• be directly involved in making the day to day investment decisions for the fund
• invest in asset classes not available in large funds, such as direct property
• invest in commercial property which can then be leased back to a related party to use in a business
• borrow for investment subject to strict requirements
• pay retirement income streams tailored to their specific requirements
• implement estate planning strategies tailored to their specific needs and circumstances

Click HERE to read more

Borrowing to invest with your SMSF

Setting up a limited recourse borrowing arrangement (LRBA) within a self managed super fund (SMSF) can allow you to gear your super and invest in asset classes, such as direct property and shares. However, the rules are complex and require specific arrangements to be put in place. SMSF trustees should therefore seek specialist advice to help them navigate these rules and to understand the risks involved.

Click HERE to read more about SMSFs and limited recourse borrowing arrangements

Transferring a business premises to your SMSF

One of the advantages of self-managed super funds (SMSFs) is the ability to acquire a business real property (BRP), such as a commercial property, a shop or even a farm through your SMSF. The property can then be leased back to a member to use in a business.

Click HERE for information about transferring ownership of a business premises to your SMSF

Holding insurance through your SMSF

Insurance is an important consideration for all of us. But for SMSF trustees, there is a legal requirement to consider the need to hold insurance cover for each of their members. Player Hall can help with these insurance needs.

Click HERE to read about the advantages and disadvantages of holding your personal insurances through your SMSF

Contributing Shares to your SMSF

Many investors have a personal share portfolio. When it comes to your SMSF, did you know that you can contribute more than simply cash? You are also able to contribute listed shares (must be in line with contribution caps detailed in SIS regulations).

Click HERE to read about how you can transfer your shares into your SMSF

SMSF Financial Planning Services provided as an authorised representative of Count Financial Limited AFSL 227232.