Self-managed super funds (SMSFs) are a way of saving for retirement. SMSFs are one of the fastest growing sectors of the Australian super industry.

SMSFs give people full control of their own super fund, including all the legal and tax responsibilities associated with doing this.

 What is an SMSF?

 SMSFs are a legal tax structure with the sole purpose of providing for your retirement. SMSFs are regulated by the Australian Taxation Office (ATO).

• An SMSF can have 1-4 members.
• An SMSF is a trust structure and must have a trustee. There are two options: Corporate Trustee Structure or Individual Trustee Structure.
• Generally, SMSF trustees will use one central bank account to receive contributions and use that account to make investments.
• An SMSF must have a Trust Deed that sets out the governing of the SMSF
• An Investment Strategy must be in place that states how you plan to invest the SMSF assets
• A Binding Death Nomination will state who you would like you super benefits to be paid in the event of death
• Annual tax return and audit must occur every year

You can’t do it all yourself

Despite some people calling SMSFs ‘do it yourself super’ or ‘DIY funds’ you will have to work with some other people to meet your obligations[2].

• You will need an independent self-managed super fund auditor who is registered with ASIC to complete your fund’s audit each year.

• In some circumstances, you will need a qualified actuary to provide you with an actuarial certificate.

• Each year, you need to value your assets at market value. In some circumstances, you will need an independent valuer who is qualified to do this; for example, to value artwork.

You may also work with:

• An administrator who will manage most of the day-to-day running of the SMSF. The legal and tax responsibilities are still yours even if you use an administrator.
• An Accountant to prepare financial accounts, statements and tax returns.
• A Financial Adviser for investment and estate planning advice.

How we can help

The team at Lincoln Financial can assist you with assessing if a SMSF is right for you. There are advantages and disadvantages to any strategy and this is certainly the case in regards to SMSF. Once you SMSF is in place we can apply our investment themes to build a portfolio that reflects your objectives, risk profile and estate planning needs.

We make the recommendations. You make the decisions.

SMSFs and Estate Planning is a complex area, but with our experience we will help to make sure your money goes to the right people at the right time.

What will your SMSF cost?

The costs of setting up and running an SMSF vary depending on, among other things, your circumstances, super balance, investment strategy and how you choose to manage your fund. The more complex you make it, the more it is likely to cost.

For information about SMSFs please contact us at Lincoln Financial on Phone (02) 9241 6733.

^{[1] http://www.superguru.com.au/about-super/smsfs
[2] www.ato.gov.au}