self managed superannuation funds (smsf)

Over 37,000 SMSF’s are established every year in Australia. (source ATO.gov.au)

Those Australians taking an active interest in their Superannuation are discovering the benefits offered by establishing their own Self Managed Super Fund (SMSF).

We can assist at any phase of the SMSF Life cycle including:

  • Establishment of your SMSF;
  • Creation and documentation of your investment strategy;
  • Consolidation of your super assets;
  • Salary Sacrifice;
  • Transition to Retirement (TTR) Strategies;
  • Setting up Reserving Strategies to meet your estate and family wealth plans;
  • Manage and pass wealth to future generations in a tax effective manner;
  • Wind up of your SMSF.

SMSF’s perform the same role as other super funds, by investing contributions and rollovers and making them available to members on retirement.  The key difference is that the members of self managed funds are also the trustees and therefore control how funds are invested and the payment of their benefits.

With your own SMSF or ‘D-I-Y super fund’ you get to decide what you invest in and when your benefits are paid, as long as you comply with superannuation law.

As specialist advisers with the Self Managed Super Fund Professionals Association of Australia (SPAA) we can assist you with advice at any lifestage of your Self Managed Super Fund.  Our unique advice approach means we can work with clients on a once off advice arrangement to keep you up to date on legislative changes or a fixed annual fee charged monthly for ongoing advice services to assist with annual investment review, taxation and financial statement reporting and compliance requirements.

Borrowing in Superannuation

Changes to superannuation legislation now allow self managed superannuation funds (SMSF’s) to borrow to acquire assets including residential and commercial property to support their investment strategies subject to meeting a number of requirements.

How Does It Work?

Your SMSF borrows funds to acquire an asset (eg residential and/or commercial property) and a separate trust is established to hold legal ownership of the property on behalf of your SMSF. These trusts are being referred to as security trusts or warrant trusts. A loan is then organised to meet the balance of the purchase price (plus costs) that your SMSF isn’t providing. The SMSF then manages the property in the same way as you would any other real estate investment.

The loan is a limited recourse loan and the asset (property) is used as security. In the event of a loan default, the lender only has recourse to the residential and/or commercial property. They cannot claim on any other SMSF assets.