Gillett & Associates can advise you and assist in establishing your Self Managed Superannuation Fund. The Superannuation Consulting service handles a diverse range of enquiries ranging from tax planning for superannuation funds to consulting on the issues to be considered when establishing a self-managed complying superannuation fund.
Self Managed Superannuation Funds is a way for you to reduce the fees that you are currently paying and take control of your retirement. The Compliance Service covers all facets of annual compliance including preparation of financial statements, income tax returns, audit requirements and provides assistance to Trustees on their diverse responsibilities.
1. Investment Choice
One of the key benefits of an SMSF’s is investment control, and the wider investment choices such as residential and commercial property, collectibles, term deposits, direct shares, etc. that trustees have compared to industry and retail super funds.
2. An SMSF can borrow to invest
With the rules that now allow SMSF’s to borrow, SMSF members can now purchase large single assets such as residential property that would otherwise be outside of their reach. For example, a couple with a combined SMSF balance of $200,000 can borrow money via a limited recourse loan to purchase an investment property worth $400,000.
3. Tax Minimisation
Apart from defined benefit super funds (like a government employee fund), most other superannuation funds will offer the ability to take a tax-free pension as an income stream upon retirement. Another benefit of an SMSF is that it gives you more flexibility than any other superannuation structure when it comes to contributions, the timing of contributions, allocating earnings to particular members and implementing ‘reserves’.
4. Minimise transaction costs: brokerage, buy/sell, and CGT spread costs:
Whenever it comes time to move to the pension/retirement phase an SMSF will allow you to have an almost seamless transition from the accumulation phase to the pension phase without the need to sell down assets, therefore not triggering capital gains tax (CGT) and other transaction costs.
5. Transferring your wealth to the next generation
There are plenty of useful estate planning benefits that are built into Australia’s superannuation system. However, an SMSF offers even more benefits, control and flexibility over a member’s estate plan that can ensure that the funds from the SMSF go to the right people, at the right time, in the most tax effective way possible.
6. Protect your assets
Asset protection can be a key consideration for many people, especially business owners and superannuation can be a structure that protects the members from litigation and bankruptcy. In either of these events, your superannuation benefits are likely to be protected from creditors.
7. Cost Savings
For some people, the cost of having SMSF can be lower than alternative public offer super funds, especially when the fund balance is high – greater than $200,000. The average cost of annual administration is around $2,000 to $3,000 p.a which includes audit and accounting fees. The average retail super funds charge approximately 1.5%, which is $3,000 p.a on an account balance of $200,000.
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