Self Managed Super Funds and Audits
Is a Self Managed Super Fund right for you?
What's involved with a SMSF?
Before you decide if a SMSF is right for you, you should have an idea of what's really involved and the costs involved in running a self managed super fund.
Watch the video to find out what's involved in starting your own SMSF
What kind of investments can you make under a SMSF?
Self Managed Super Funds have the right to invest in property, shares and term deposits for the sole benefit of providing super benefits for the members of the fund when they retire. You cannot use the Assets of the fund for personal purposes or have any other related member of the family using the assets of the Fund.
A SMSF should have an investment strategy in place. Our panel of experts can assist in assessing the right investment strategy for your superannuation at a minimum cost to you.
Watch the video to find out more about SMSF investment strategy
What kind of superannuation contributions can I make and what is the limit?
There are different kinds of contributions that can be made into the Fund which include a mixture of personal and employer contributions. Watch the video to learn more about SMSF contribution caps. For more information, contact our office.
What deductions can I claim under SMSF?
Like other taxpayer entities, a complying SMSF is entitled to deduct from its assessable income any looses or outgoings that are:
- Incurred in gaining or producing assessable income.
- Necessarily incurred in carrying on a business for the purpose of gaining or producing such income.
- Losses and outgoings relating to exempt current pension income are generally not deductible because they are incurred in earning exempt income.
Expenses that a complying SMSF can deduct include:
- The supervisory levy.
- Insurance premiums for death and disability policies - these are deductible provided the policies are for death or permanent incapacity benefits. Not other types of disability benefits.
- Accounting and auditor fees.
- Interest - a complying SMSF is generally prohibited from borrowing money or maintaining an existing borrowing of money, but interest incurred in gaining or producing assessable income would be deductible.
- Investment and administration expenses.
Can I run a business in my SMSF?
The rules that govern SMSFs do not directly prohibit them from carrying on a business. However, if you are considering carrying on a business inside an SMSF, you must first ensure that:
- It's allowed under the trust deed.
- The operation is for the sole purpose of providing retirement (or death) benefits for its members.
The rules that govern SMSFs prohibit and limit some activities that are available to businesses that are not SMSFs, for example, entering into credit arrangements or having overdrafts. Caution is recommended in this area as is seeking independent legal advice. To find out more contact us!
What benefits can be paid and when are they paid?
Generally your SMSF can only pay a member's super when the member reaches their 'preservation age' and meets one of the conditions of release, such as retirement. The payment may be an income stream (like a pension) or a lump sum, depending on the circumstances. There are significant penalties for releasing super benefits without meeting a condition of release.
Watch the video SMSF paying an income stream
With constant changes to Superannuation Laws, it would be wise before paying benefits to ensure that you are up to date with the requirements, so contact our office to advise you further.
Why do we need to appoint an External Auditor for the SMSF?
As a trustee of a SMSF, you must appoint an approved, independent auditor to audit your fund each year, at least 45 days before you need to lodge your SMSF annual return. The auditor examines your fund's financial statements and assesses your fund's compliance with super law.
Watch the video SMSF annual obligations