Why choose self managed super?

According to ATO statistics, there are approximately 30,000 self managed superannuation funds (SMSF) established every year, growing the total number of self managed funds by about 8% each year.

So what is the attraction to self managed super funds?

If you have $200,000 or more in savings, SMFSs are a flexible and dynamic investment structure, particularly for families and small business owners. An SMSF offers a number of important benefits including:

Tax Concessions

Complying SMSFs in the accumulation stage are taxed at a maximum rate of 15%. For funds which pay pensions, no tax is payable on the income or capital gains on assets used to fund pension payments. From 1st July 2007, lump sum or pension withdrawals made by members over the age of 60 are tax free. No other investment structure offers these types of concessions.

Investment Control

Unlike retail, industry or employer funds, the trustees of a SMSF establish and manage the investment strategy of the Fund. As a result they can create an investment portfolio that meets their exact needs.

Investment Choice

The trustees have sole investment choice. The current rules allow the trustees of a SMSF to invest in shares, real estate, farms, installment warrants, bonds, managed funds and the like. A business owner can also acquire business real property in their fund and then lease it back to their business. A SMSF can, in certain situations and subject to certain restrictions, borrow to acquire assets.

Creditor Protection

One of the key problems of running a small business is the potential liabilities a business owner must constantly face. However, should the owner of a small business face bankruptcy, monies inside a SMSF are generally protected from the member's creditors.

Generational Wealth and Estate Planning

The SMSF can be used as a flexible and highly tax effective estate planning tool, enabling wealth to be transferred between family members and generations in a tax effective manner.

If you would like to discuss SMSFs and how they can become part of your wealth creation and estate planning strategy, please call our office on 03 9869 5900 or email us for more information.