A Self Managed Superannuation Fund (SMSF) is a super fund set up for those who wish to manage their superannuation assets by themselves.
Australian Taxation Office recommends that you have at least $200,000 in the fund to be economically feasible to set it up.
Are you a trustee of Self Managed Super Fund? As one of the most specialized and experienced accounting firms in Ashfield, Inner West Sydney, Northern Beaches and Adelaide, our professional accountants will be able to guide you along the way.
Our principal John Cheng was an SMSF Auditor before he resigned from the role. Although he has since left, however, as a prior auditor of SMSF, he has extensive experience in the compliance aspects of SMSF. As a result, he will be able to work with the auditor to ensure your fund is compliant.
As the leading CPA firm and highly experienced accountant and tax agent in Inner West Sydney, Northern Beaches and Adelaide, we can provide an affordable solution to meet your self-managed super fund SMSF needs.
All super funds must comply with the SIS Act, ITAA 1936, and ITAA 1997. The trustees are required to oversee these compliance requirements.
For example, it is crucial to ensure that the timely lodgement of the SMSF tax affair or the fund will become non-compliant. If the compliance breach is severe, the fund will lose its concessional status. Some possible penalty includes
- That the fund remains non-complying every year; its assessable income is taxed at the highest marginal tax rate.
- In the year it becomes non-complying, it must include in its assessable income an amount equal to the market value of the fund’s total assets less any contributions the fund has received that are not part of the fund’s taxable income.
- Winding up the Self Managed Super Fund
- Disqualify the trustee to become the trustee of the Self Managed Super Fund.
- Sometimes, the Australian Taxation Office can impose criminal sanctions against the trustee for non-compliance
There are many advantages to SMSF. The main two reasons for choosing an SMSF over a regular fund are the cost advantages and the control that members get over their own investment decisions.
For example, for a self-managed super fund, the trustee of the SMSF has more discretions as to what to invest; however, it must be within the SIS Act Scope. The SMSF can invest in a residential dwelling or commercial property. The SMSF, however, the investment must adhere to the SMSF strategy to be compliant.
When you are opening up the SMSF, you factor into the ongoing fee and appoint a professional accountant or tax agent to manage the bookkeeping aspect of the SMSF to ensure it is compliant.