Self Managed Superannuation Fund: The Ultimate Guide
Are you looking for a way to manage your own superannuation assets? Self Managed Superannuation Fund (SMSF) could be the answer for you. The Australian Taxation Office recommends that you have at least $200,000 in the fund to make it economically feasible to set it up.
Professional Assistance from Our Experienced Accountants
Our professional accountants at Inner West Sydney, Northern Beaches and Adelaide are highly experienced and specialized in SMSF, and are here to help you along the way. Our principal John Cheng was an SMSF Auditor before he resigned from the role. He has since left, but his extensive experience in SMSF compliance means he can work with the auditor to ensure that your fund is compliant.
Ensuring Compliance with the SIS Act and ITAA
To stay compliant, all super funds must follow the SIS Act, ITAA 1936, and ITAA 1997. As the area’s leading CPA firm, we offer an affordable solution to keep your Self Managed Super Fund on track. However, as the trustee, you hold the responsibility of lodging the SMSF tax return on time. Missing this deadline could make your fund non-compliant, which can result in penalties and a loss of concessional status. Some possible penalties include:
- When your fund stays non-compliant each year, the assessable income faces taxation at the highest marginal tax rate.
- In the first year of non-compliance, your fund must add to its assessable income an amount equal to the market value of its total assets, less any contributions not included in its taxable income.
- The ATO may disqualify you from serving as the trustee for the Self Managed Super Fund.
- For continued non-compliance, the ATO can impose criminal sanctions against the trustee.
The Benefits of Choosing an SMSF
Choosing a Self Managed Super Fund offers significant benefits over a standard fund. Chiefly, an SMSF provides cost savings and greater control over your investment decisions. As the SMSF trustee, you hold more discretion in making investment choices, provided they fall within the scope of the SIS Act. For example, you can invest in residential or commercial properties, as long as these investments align with your SMSF strategy to ensure compliance.
When you set up an SMSF, also consider the ongoing fees and the importance of appointing a professional accountant or tax agent to handle bookkeeping. This oversight keeps your fund compliant, protecting your investment’s integrity year-round.
