In past few years, many people have obtained bad returns from most super funds. Now, many people are thinking about to set up smsf superannuation or self managed super fund. Before setting up these, there are lots of things that you should consider to make the right decision. SMSFs are numerous different classes of superannuation funds in Australia; among them, the most common ones are self managed super funds and superannuation funds. These funds are usually set up for a small number of people and are governed by the rules and regulations of the Australian Taxation Office. Spend time with your SMSF auditor to establish the right SMSF investment strategy.
Benefits of having superannuation fund in Australia:
• Greater investment flexibility
• More control over investments
• Generally lower fees than industry and retail funds
Most people pay right into a fund that is managed well by other person. This may be through retail funds, an employer fund or an industry super fund. On the contrary, an investor can become the trustee and beneficiary with a self-managed super fund. They run this for their own profit. The most significant benefit of putting together your own SMSF is that people can invest their superannuation in line with their personal preferences. They are also able to follow some innovative SMSF investment strategies like investing in residential or commercial property.
A lot of knowledge and skills are required for smsf administration, Setup and also to buy smsf property. One must have the knowledge of the taxation requirements and rules. As, it is not easy to comply with these, professional help is essential. You can take help of SMSF auditors to take control of funds or for great SMSF investment strategy. These all fund are required to be submitted to an independent auditor one time in a year. The financial audit along with the proofs that the fund complies with the rules of SMSF should be included in this auditing. As it is a very complicated process, it is essential to hire an accountant who is expert in preparing such documents.
SMSF superannuation can be used for property smsf investment strategy. The Australian Tax Office requires that a SMSF auditor perform the fund’s auditing. Just like other investment fund, these are also subject to income tax. When SMSFs are obedient to the rules and regulations of the SMSF auditor and the tax office, these get concessional treatment. Due to its flexibility, you can use SMSF investment strategies which are not practiced by the retail superannuation funds or the industry. For instance, you can invest in anything from cash, international and Australian shares, residential and commercial property, managed funds to even art. Remember that your investments must be done in the right format.
To aid management of your SMSF set up and make certain ongoing compliance, it is an ideal way to work with an expert SMSF auditor and an experienced accountant. They will help you to improve your SMSF superannuation so you are very well set up when you get retired.
For more information about SMSF Set up visit us at Future Assist.