SELF MANAGED SUPERANNUATION
“Invest in what you are passionate about”
Benefits of directing your own superannuation
Increasingly, people are seeking to control their financial destiny in all respects by selecting strategies which resonate with them.
SMSFs may appeal to those seeking opportunities considering:
- Investment choice
SMSFs allow an almost limitless scope of investment options. Trustees can potentially access direct shares, high-yielding cash accounts, term deposits, income investments, direct property, blockchain, unlisted assets, international markets, collectables and more
- Tax strategies
Like all superfunds, SMSFs benefit from concessional tax rates. In the accumulation phase, tax on investment income is capped at 15 per cent; in the pension phase there is no tax payable, not even capital gains tax. SMSFs can “negatively gear” by borrowing to purchase assets. Carefully considered tax strategies can help you grow your super savings and reduce tax payments as you transition to retirement.
SMSFs allow multiple members to run a mixture of accumulation and pension accounts. You’ll be able to adjust your investment mix as it suits you, allowing for a fast response to changes in market conditions, super rules or personal circumstances.
SMSFs offer significant transparency allowing trustees to align their personal goals with their investment decisions. Whether you’re passionate about property, shares or sustainable and ethical investing, SMSFs provide a platform which allows you to understand where your money is invested, with complete visibility over performance and tax treatment.
SMSF trustees must lodge an annual tax return and audit, and pay ATO fees (these are capped and not based on a percentage of your super balance). The more an SMSF grows, the more cost-effective it becomes, but the total cost of running an SMSF will depend on the related investments and any costs associated with engaging professional support.
- Consolidate superannuation assets
A SMSF allows a trustee member to combine their superannuation assets with up to five other members such as family or unrelated persons. Consolidating super accounts immediately creates a larger fund balance, which increases the fund’s assets and investment opportunities – with only one set of fees.