SMSF being relatively fixed, when
compared to retail super funds
(which are often a percentage of
your account balance), SMSFs may
provide significant cost savings.
These savings typically start
for balances around $200,000,
depending on what the fund
invests in. A key point here is that
cost savings should not be the sole
motivator for running a SMSF.
as making your own investment
decisions can provide a feeling of
control and self-accountability.
On the downside, no-one ever feels
good about being responsible for
making poor investment decisions.
running a SMSF. Many come from
being able to control when tax
liabilities arise i.e. you choose
when assets are sold. Having
this ability could potentially save
you many thousands of dollars
in tax over the life of your fund.
And did you know that waiting
until your fund is in pension
phase before you sell an asset
could mean you potentially pay
no Capital Gain Tax on the sale?
The key here is careful planning.
trustee), you get to make the
investment decisions. One of
the main advantages of running
a SMSF over being a member of
a retail super fund is that you
property, subject to the trust deed
and written investment strategy.
It can be a particularly attractive
option for doctors to purchase
their rooms under the Business
Real Property exemption.
deed will allow subject to being
within the legislative rules you
can decide how death benefits
are paid such as a pension or
lump sum, and to whom. It is
important that you seek advice
regarding the appropriate use of
binding nominations, reversionary
pensions and associated estate
planning structures, such as
testamentary trusts.
and should not be taken lightly.
A breach in the rules can result in
range of penalties, including fines,
increased taxes (potentially close to
half the value of the fund could be
lost) and, in severe cases, even jail for
the trustees/directors (of which you
would be one). So make sure you are
aware of the rules and have skilled
advisers to guide you.
·Trustee Responsibility: As a
trustee) of your SMSF, you are
ultimately responsible for the
running of the fund, which
includes ensuring compliance with
superannuation laws. The law states
that you must essentially manage
the money in the fund as if it