A self managed superannuation fund (SMSF) is a private superannuation fund you manage yourself, that is regulated by the Australian Taxation Office.
Members of the SMSF (there can be up to four) must be trustees (or directors if there is a corporate trustee) and are responsible for decisions made about the fund which will be set out in the trust deed for the SMSF.
If you have an SMSF, you are responsible for managing it and complying with all laws. Managing your own SMSF is a big commitment!
Here, Plant & Associates, CPA’s with offices at Beenleigh and the Gold Coast outline for readers, just what obligations are involved in taking on a Self Managed Superannuation Fund.
Money
Starting a SMSF needs to be worthwhile as accounting fees, audit fees, tax advice and legal fees will all be deducted from the balance of the SMSF.
Time
Efficiently managing a SMSF takes time. You will need to allocate time regularly to actively manage the SMSF.
Investment expertise
As the trustee, you will need to devise your own investment strategy. Would your superannuation be better handled with a qualified financial adviser or investment manager who have years of investment experience?
Trustees must provide a written strategy document showing how they intend to develop, implement and regularly review their investment strategy for the benefit of the beneficiaries of the SMSF.
Legal Responsibilities
Taking on the role of trustee of a SMSF comes with legal responsibilities and you need to fully aware of what these legal obligations are. Some of the responsibilities include:
Ensuring the money is only used for retirement benefits for the trustees
Allowing trustees to access information about the fund
Record keeping
Lodging annual statements
Reporting contributions
Asset valuations
Having the SMSF audited each year by an approved SMSF auditor
Protection
Lower levels of protection apply to SMSF’s. Australian Prudential Regulation Authority (APRA), regulated funds are eligible for compensation where they suffer loss as a result of fraud or theft whereas SMSF’s are not eligible for any compensation.
With any investment, you really need to do your research and speak with qualified professionals to ensure a SMSF is right for you.
Our expert superannuation accountants at Plant & Associates can advise you on all superannuation matters. If you decide a SMSF is the best option for you, we provide a full range of self managed superannuation fund services, including:
- SMSF set up
- Preparation of SMSF trust deeds, completion and lodgement of relevant ATO forms
- Ensuring your SMSF is fully compliant with current laws and regulations
- Provide investment strategies
- Prepare annual accounts, audits and tax returns
- Prepare annual financial statements
- Prepare SMSF tax returns
If you currently have a SMSF and are finding you need help fulfilling your obligations as trustee, Plant & Associates can assist you with this also.
Call to speak with one of the expert superannuation accountants at Plant & Associates on 07 5596 5758 so you can live your retirement life the way you want to!