Self-Managed Superannuation Funds Newcastle | Lake Macquarie | Hunter Valley

A private superannuation fund, also known as an SMSF, is a superannuation fund that you manage yourself, giving you more control over your retirement savings. Unlike retail or industry super funds, you (and your fellow trustees) make the investment decisions and are responsible for complying with superannuation law and regulations.

• Control: You have direct control over your investment strategy and asset allocation, you choose your own investments.
• Flexibility: You can invest in a wider range of assets, such as direct property or unlisted shares, which are often restricted in other super funds.
• Tax efficiency: SMSFs can be tax effective for contributions and earnings.
• Estate planning: SMSFs can be structured to give you more control over the distribution of your superannuation to your beneficiaries.

• Administrative: SMSFs require a lot of administration, record keeping, compliance, and reporting.
• Financial literacy: You need a good understanding of investment principles and risks to make informed decisions.
• Cost: Setting up and running an SMSF can be more expensive than other super funds, especially for smaller balances.
• Liability: Trustees are personally liable for the fund’s compliance and any losses incurred due to breaches of superannuation law.
• Risks: Establishing an SMSF comes with risks, penalties for non-compliance and limited access to dispute resolution. You need to weigh up the benefits of an SMSF against these risks.

SMSFs are more suitable for fund members who:

• Have a larger superannuation balance
• Are willing to take on more responsibility and administration
• Have a good understanding of investment principles
• Have specific investment goals or want to invest in a wider range of assets

We offer full SMSF services:

• SMSF setup and administration: We can guide you through the setup process, do the administration, and ensure you comply with superannuation law.
• Investment strategy: We’ll work with you to develop a tailored investment strategy that suits your retirement goals and risk profile.
• Investment management: We can provide ongoing investment advice and portfolio management for your SMSF.
• Taxation and accounting: We’ll ensure your SMSF meets its tax obligations and prepare all financial statements and reports.
• Ongoing costs: We help manage ongoing costs such as accounting, tax, audit, legal fees, and financial advice to ensure the fund’s viability and long-term growth.

There is no minimum amount required by law, but it’s recommended to have at least $200,000-$250,000 in superannuation before considering an SMSF. The fixed costs of running an SMSF can make it less cost-effective for smaller balances. An SMSF can be used to buy property, give you personal control over your investments and tax benefits but it comes with complexities and conditions.

Setting up and managing a Self-Managed Super Fund (SMSF) requires thought and planning. As a trustee of an SMSF you are responsible for making investment decisions, managing the fund, and ensuring the fund complies with superannuation law.

To set up an SMSF you will need to:

• Register the fund with the Australian Taxation Office (ATO)
• Appoint a trustee or corporate trustee
• Create a trust deed that outlines the fund’s rules and objectives
• Open a bank account in the fund’s name
• Get an Australian Business Number (ABN) and Tax File Number (TFN)

Once your SMSF is set up you will need to manage the ongoing operations of the fund including:

• Investing the fund’s assets in accordance with the investment strategy
• Managing the fund’s cash flow and budget
• Keeping accurate and up to date records of the fund’s transactions and financial position
• Lodging annual tax returns and other reports with the ATO
• Ensuring compliance with superannuation law and regulations

Given the complexity involved, we highly recommend you seek professional advice from a licensed financial adviser or accountant. They can guide you through the setup process and manage your SMSF for you, to ensure you meet all the legal and regulatory requirements.

An investment strategy is a key component of a Self-Managed Super Fund (SMSF). It outlines the fund’s investment objectives, risk tolerance and asset allocation and provides a framework for making investment decisions.

When developing an investment strategy for your SMSF consider:

• Your investment goals and risk tolerance
• The fund’s cash flow and liquidity needs
• The fund’s asset allocation and diversification
• The investment options available to the fund
• The costs and fees associated with each investment option

Your investment strategy should be personal to you and your circumstances and should be reviewed and updated regularly to ensure it remains relevant and effective.

Common investment options for SMSFs include:

• Shares and other listed securities
• Property, commercial and residential real estate
• Fixed interest investments, bonds, and term deposits
• Alternative investments, private equity, and hedge funds

To develop and implement a sound investment strategy we recommend you seek professional advice from a licensed financial adviser or investment manager. They can help you align your investments with your retirement goals and risk tolerance so your SMSF is set up for long term success.

As a member of a Self-Managed Super Fund (SMSF) you can contribute to the fund in several ways:

• Employer contributions, Superannuation Guarantee (SG) contributions
• Personal contributions, after tax contributions and salary sacrifice contributions
• Rollovers from other super funds or retirement savings accounts

The fund can also accept contributions from other sources, spouse contributions and government co-contributions.

When contributing to your SMSF be aware of:

• Contribution caps: There are limits on how much can be contributed to an SMSF each year.
• Contribution types: Different types of contributions have different rules and limits.
• Tax implications: Contributions to an SMSF may be taxable and the fund may be eligible for tax concessions.

Rollovers from other super funds or retirement savings accounts can also be made into an SMSF. However there are rules and restrictions that apply to rollovers including:

• Rollover rules: There are rules around how you can roll over into an SMSF.
• Rollover fees: There may be fees to roll over into an SMSF.

Get to know the rules and implications of contributions and rollovers. We recommend you seek professional advice from a licensed financial adviser or accountant to help you through this process and make informed decisions for your SMSF.

Winding up a Self-Managed Super Fund (SMSF) involves several steps and considerations. As a trustee of an SMSF you are responsible for winding up the fund in accordance with superannuation laws and regulations.

When winding up an SMSF consider:

• The fund’s assets and liabilities: You will need to identify and pay out the fund’s assets and liabilities.
• The fund’s members: Make sure the fund’s members are paid out their entitlements in accordance with the fund’s rules and superannuation laws.
• Tax implications: Winding up an SMSF has tax implications, capital gains tax and income tax.
• Reporting: You will need to lodge final tax returns and other reports with the ATO.

Winding up an SMSF involves:

• Resolving the fund’s assets and liabilities
• Paying out the fund’s members
• Lodging final tax returns and other reports with the ATO
• Deregistering the fund with the ATO

Given the complexity and tax implications we recommend you seek professional advice from a licensed financial adviser or accountant. They can help you through the winding up process and ensure you comply with all laws and regulations.

Contact Collective Financial Partners today for a consultation. We’ll assess your individual circumstances, discuss the suitability of an SMSF for your needs, and help you make informed decisions about your superannuation.