SMSFs are a very powerful retirement planning vehicle that allows you greater flexibility and control over savings and investments. SMSF is a superannuation fund with one to four members where the members actively participate in the fund’s management. SMSFs are also sometimes referred to as DIY funds, mum and dad funds or family funds.
BENEFITS OF SMSF
Implementation of effective tax management strategies
Flexibility to make timely investment decisions when market conditions change.
Up to four fund members so you can include your family, increasing investable savings and keeping fees lower for everyone.
Lower fees compared to industry and commercial funds (depending on your Super balance)
Flexible pension planning and management
Control and flexibility in estate planning
Who Can Benefit From Establishing an SMSF
self-employed (professionals or people running a small business) who wish to have their own cost-effective superannuation vehicles
taxpayers who are high income earners and have a large net worth
retirees who wish to manage their own pension funds.
employees who want to have a greater say in the investment of their superannuation savings in line with their expectations and needs
employees who are dissatisfied with the investment performance of their existing employer-sponsored or public offer managed funds, or with the level of charges imposed by these funds.
SMSF Establishment
EWM Accountants & Business Advisors procedure to establish your SMSF is quick and simple.
First, we provide you with SMSF establishment advice, detailing of the benefits of SMSF for you
Secondly, we provide you with simple and easy to understand documentation., which consists of:
The SMSF trust deed
Minutes and all documentation relating to the establishment of the fund and admission of members and trustees
Investment strategy information and sample template
Nomination of beneficiary instructions and forms
Thirdly, we prepare and lodge application for tax file number and Australian business number for your SMSF as well as provide necessary documentation to open SMSF bank account
And last, we help you with any roll-overs of funds held in other superfund
Our establishment team can also assist you with organising Life Insurance and/or Property loan in SMSF.
Compliance & Administration Of The SMSF
At EWM we can assist you with all of the accounting and taxation required for your superannuation fund, including:
Maintaining detailed capital gains tax records
Maintaining detailed membership records
Preparation of financial statements
Preparation of the annual tax return and regulatory documentation
Preparation of all minutes and associated documentation
Pension administration
Arranging for external SMSF audit
Four key questions will need to be addressed when deciding whether to commence an SMSF.
Is the SMSF strictly for retirement purposes?
Does the taxpayer have the time and skills?
Will the benefits be worth the costs?
How will switching to an SMSF affect the taxpayer’s current superannuation?
Borrowing In SMSF To Buy Property
SMSFs are able to borrow to invest via a bare trust arrangement in residential and commercial property. Depending on the lender, generally SMSFs can borrow up to up to 80% for residential properties and 70% for commercial properties.
At EWM we assist our clients make informed decisions and help them with the bare trust set-up. We can also assists with loans and bank liaison prior to and after purchase as well as in preparation for settlement.
