Are you interested in Self-Managed Superannuation? Are you thinking about making the switch?
Self-Managed Superannuation Funds (SMSF’s) are a very popular superannuation structure being utilised by approximately 300,000 individuals, families and small businesses Australia-wide. They currently account for over 30% of all assets held in the Australian superannuation system. There are many good reasons to choose a SMSF. The most common reason is flexibility and control over your investments, but there are also many other benefits. Strategies can be employed to ensure that your Fund is a multi-generational fund, passing from generation to generation. Tax benefits can also be obtained through smart financial strategies.
Granted, a SMSF may not be suitable for all people. if you are considering a SMSF, here is some additional information that could help you in your decision-making process.
Here are six potential benefits of a SMSF:
1. Greater control over your investment strategies
Owning a SMSF allows you to invest in more areas than a regular superannuation account which is limited to a range of managed investments, cash and shares. SMSF’s extend beyond this limitation and allow you to invest in direct property, shares, hedged funds, managed funds and collectables e.g. Artwork.
Increasing the sophistication of your investment strategy allows you the opportunity to utilise additional features such as borrowing to invest and leasing your business premises from your SMSF.
2. Collective membership
Self-managed superannuation funds can have up to four members. Each additional membership (up to four members) into one fund can increase the balance with which you can invest. This is a particularly advantageous strategy when investors are exploring the additional investment opportunities available in SMSF’s, such as investing superannuation into property.
3. Increased opportunities for tax benefits
Self-managed superannuation has the potential to give you improved flexibility over your tax position. With the right strategy, you can reduce your tax substantially by considering the opportunities available around tax concessions and capital gains tax rulings around assets held and sold by your superannuation fund in retirement – you may not even have to pay capital gains at all!
4. Estate Planning
Your will does not necessarily control your superannuation benefits. SMSFs can leave tax advantaged payments to dependent beneficiaries. The fund can also make binding nominations that do not lapse, where retail funds may not have this option.
5. Borrowing capabilities
Superannuation funds have the capability of borrowing to invest under certain conditions and circumstances. This has limited application in a retail or industry fund, but can be particularly advantageous should you own a self-managed superannuation fund. Borrowing to invest may have significant longer term benefits, such as investing in property over a long term.
6. Self-Managed Superannuation might be more cost effective
If you have a large superannuation balance (usually over $200,000), starting a SMSF may be a more cost-effective strategy for you.
How can Black & White Accounting Solutions help me?
We can help with ALL aspects of setting up your SMSF and any other requirements associated with your SMSF now and in the future. Black & White Accounting Solutions specialise in Self-Managed Superannuation and can offer you quality, responsive and relevant services to meet your diverse needs.
We will take care of all aspects of your annual ATO compliance obligations including accounting, taxation and audits. If you are thinking about setting up a new SMSF, contact us and we can assist you with getting started.
Ongoing Technical Assistance
Our services extend further than just your annual tax return and audit. We offer an ongoing service to our clients to contact us at any time throughout the year with any technical questions or advice you require about your SMSF – free of charge!
SMSF Specialist Service
We are specialists in Self-Managed Superannuation, so you know that you are in the right hands when it comes to compliance, taxation and technicalities of managing and running your fund.
You will receive a secure login to our online portal which you can access anytime to view your accounting and financial planning reports.
Upfront Fees with no lock in Contracts
All of our fees are disclosed upfront, so you won’t be left with any surprises. We believe that honesty is the best policy so you have an understanding of what great value for your money you are getting!
I would like to know more!
If you are interested in seeing if a Self-managed fund is right for you or you would like to maximise the potential of your existing SMSF, give us a call today on (02) 4225 7779 to arrange a consultation with us or click here to send us your enquiry.