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The Australian Taxation Office (ATO) regulates self managed super funds (SMSFs). The Australian Securities & Investments Commission (ASIC) regulates financial services and company laws to protect you. Starting an SMSF is a very important decision, so we recommend you see a qualified and licensed professional to help you decide if it’s the right super fund for you.
If you want to manage your own super, there are many factors you need to consider. To work out whether an SMSF is right for you, it’s important you take the following six steps:
There are many professionals who specialise in SMSFs. They can provide advice to help you understand:
Remember, if you decide to set up an SMSF, you will either be a trustee of the fund or a director of the company that is a corporate trustee for the fund. Therefore, you are legally responsible for all the decisions made even if you get help. A professional can provide advice and assistance but you’re ultimately responsible.
Operating an SMSF means you’re responsible for the fund. You need to make sure you have enough assets, time and appropriate skills to:
As a trustee of an SMSF, your primary responsibility is to ensure you have invested your fund’s money appropriately, so ask yourself the following questions:
It’s important to think carefully about how you choose your investment options. When thinking about how to manage the risks associated with your investment options, we recommend you also consider:
Super funds, including SMSFs, receive significant tax concessions as an incentive for members to save for their retirement. However, you need to follow the tax and super laws to receive these concessions.
A trust deed is a legal document that sets out the rules for establishing and operating your fund. Together with the super laws, they form the fund’s governing rules.
An investment strategy sets out the fund’s investment objectives and your plan to achieve them. It provides you and the other trustees with a framework for making investment decisions to increase member benefits for their retirement.
If, as one of the fund’s trustees, you invest the SMSF’s money in an investment that fails, the other trustee(s) could take action against you for failing be diligent in your duties. However, if your investment decision was recorded in meeting minutes that were signed by the other trustees, you will have a record to show the other trustees agreed with your actions.
You need to appoint an approved auditor, who will:
Useful services
To obtain more information about SMSFs:
Call 133 144 If you would like more information on whether a self managed super fund may suit your personal situation, please contact the Mortgage House office and we will be able to help you to identify a qualified advisor in this specialised area.