3. Introduction
Superannuation (SAVING FOR RETIREMENT)
Super Funds
1. Corporate Funds - Large corporates operate under a Board of Trustees
2. Industry Funds - Mostly cater to single industry
3. Public Sector Funds - Federal or State government employees
4. Retail Funds - Run by Banks and other Financial Institutions
5. Self-Managed Super Fund (SMSF) - SELF
4. Self-Managed Super Fund
DIY (Do-It-Yourself) Investment
Regulated by Australian Taxation Office (ATO)
Maximum 6 members (trustees)
No minimum investment amount
According to ATO website:
- Total number of SMSFs is 597, 900 (as on June, 2021)
- Total members of SMSFs is 1,114, 529 (as on June,
2021)
5. Pros and Cons of SMSF
Pros
Financial Control
Freedom
Borrow Money (Limited
conditions)
Tax Benefits (deductible
under s25-5, ITAA 1997
Cost effective
Cons
Time-consuming
Investment Knowledge
Subject to compliances
Reduced Access to dispute resolution
bodies
Not eligible for government schemes
6. Financial Advice
Investment Research
Avoid legal or financial pitfalls
SMSF accounting
Easy administration
Use of softwares or tools
7. Conclusion
SMSFs are a great investment option but seeking
financial advice before doing so is very important to
avoid legal and financial pitfalls.