So you want to Start a Self-Managed Super Fund!

There are currently around 250,000 funds, over 400,000 members and they have about $100 billion in assets – this is the evidence of the continuing popularity of self-managed super.

So what makes self managed funds so attractive ?

1. Take Care of the Whole Family

Self-managed superannuation enables the whole family to be members of the same fund. Generally, that is difficult with other types of funds.

This is purpose built for you and your family, by having family members and their super assets in the one flexible superannuation fund and it makes decision making much easier when considering your own needs and in particular estate planning.

2. Control & Flexibility

Just about every aspect of self-managed super offers the opportunity for as much control and flexibility as you want or need. This control begins with the Fund’s Trust Deed, which can be drafted to meet your specifications.

As trustee of your own fund, you have maximum flexibility in relation to fund investments, tax strategies and estate planning.

3. Cost Effective

While cost savings will generally not be a key driver in selecting a self-managed fund, there are potential savings compared to public offer super funds. The extent of cost savings depends on the type of investments and size of capital in the fund.

4. Broad Investment Choice

Self-managed funds offer almost limitless investment choice. Compare that to your current super fund where investment choice is often limited to capital stable, balanced and growth option.

Super law does not proscribe the type of assets that a super fund can and can’t invest in. What it does, is set an investment framework that trustees must adhere to in relation to the investment of fund assets. Importantly, all investments need to be made in accordance with the fund’s documented investment strategy.

5. Tax Efficient

It is the tax efficiency of self managed funds that attract money. Some of the tax benefits are:

• The ability to use imputation credits from shares paying fully franked dividends to substantially reduce the tax liability of the fund. Importantly, excess imputation credits can be refunded to the fund.
• A maximum of 10% tax on capital gains earned in the accumulation phase and no capital gains tax in pension phase.
• The ability to structure very tax effective estate planning strategies that can include the payment of pensions upon death to beneficiaries including children.

Please contact us if you would like further information.