Self-Managed Super Funds grow really fast in Australia in the recent years. The stunning growth of SMSFs in Australia means that over 1 million Australians are now members of an SMSF, with combined assets greater than both retail and industry super funds. Our Financial Advisor Mooroolbark from CLY Financial Planning has provided 2 ways as below to make sure the best interests of SMSF members’ are being well looked after and the SMSF is smartened up.
2 ways for a smarter SMSF
1. Keep track of your costs
While SMSFs can be more cost-effective than retail or industry funds for people with substantial super balances, the additional costs of running SMSFs (e.g. accountant and administration fees) can outweigh the savings for people with lower balances.
As a rule of thumb, only people with more than $200,000 should consider starting an SMSF. But even people with larger balances need to keep a close eye on your costs to make sure you’re not diluting your savings with excessive transaction costs and capital gains tax.
2. Follow the rules (and rule changes)
There are many rules and regulations SMSF trustees need to comply with. For trustees that don’t comply, the ATO has a wide range of penalties ranging from 5 units ($900) for not complying with an education direction, to 60 units ($10,800) for lending from the SMSF to members or relatives1. And you can’t pay these fines with superannuation assets.
It’s also essential to keep track of changes to rules and regulations – such as the new obligation for trustees to value SMSF assets at market value, and review the fund’s investment strategy, on a regular basis. A good way to ensure you’re always compliant is to use an SMSF administration service that alerts you when you need to act, and seek regular advice from your accountant and financial adviser.
Mooroolbark Station
At CLY Financial Planning, our qualified Financial Advisor Mooroolbark is specialised in Self Managed Super Fund advice. Our SMSF services includes but not limited to SMSF setup, SMSF administration, investment strategy. Please Contact Us if you are interested in SMSF or want to know more. We are always here to help!
Disclaimer: The information (including taxation) is general in nature and may not be relevant to your individual circumstances. You should refrain from doing anything in reliance on this information without first obtaining suitable professional advice. You should obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.