If you have complex financial arrangements, maybe you own one or more businesses or large investable assets, and you want to optimise your taxation position and take more control of your investments, a Self Managed Super Fund might be the solution for you.
What is a Self Managed Super Fund (SMSF)?
A SMSF is a superannuation trust structure that you self-manage instead of having a retail or industry superannuation trustee manage it for you. That means that you personally take responsibility for meeting all legal and compliance requirements, including record keeping and regulatory lodgements, and for meeting the overriding’sole purpose test’. But in return, you get to invest in a wider range of investments than a retail or industry fund can allow, such as direct property or unlisted shares.
There can be up to 6 members (beneficiaries) of the SMSF, all of whom are also the trustees or directors of the trustee company.
How we can Help
It’s important to get specialist advice when setting up or running a SMSF, as the ATO penalties for getting it wrong are huge. We can help you:
- Determine whether a SMSF is right for you
- Work out the best way to set it up and transfer assets over
- Select investment options that match your risk profile
- Structure your overall financial planning to minimise tax and meet your goals and objectives
Small Business and Commercial Property
For business owners in particular, owning your commercial property inside your SMSF can be particularly attractive. Not only can you pay rent to yourself on top of the usual super contribution caps each year, but any capital growth is being captured by your SMSF, ready for your retirement in a tax effective manner.
Plan ahead for success
Make sure you’re in a position to benefit from working for yourself from the outset. You’ll have a better chance of business success when you consider all of your financial needs when holding your commercial premises inside your SMSF.
How we can Help
Again, ownership of commercial property inside a SMSF can be tricky. We can help you consider:
- How to structure the purchase of the commercial premises from the outset; or
- How to transfer ownership of existing premises, to meet legal requirements; as well as
- How to properly structure any leases and maintenance requirements while you operate from the premises; and
- Any financial plans you need to put in place when you exit the business and sell the property.
What to do next
Speak with us about how we can help.
About the Author
I'm passionate about helping real people have enough money to live a life they love!
40 years of experience working in financial services, starting as a chartered accountant with Grant Thornton in England before emigrating to Australia in 1988 with Price Waterhouse.