SMSF, one of the fastest growing funds under super funds segment has burgeoned by almost 400 percent since mid-nineties. It provides you with a linchpin structure for your investments & retirement savings.

Some may find this an enticing option accruing to the retirement benefits to be delivered in future while others may dissent from the view taking in consideration the rigid nature of this fund.

Before setting up SMSF fund, one may have to consider a few things:

• Deciding upon trustee structure viz. Corporate Trustee & Individual Trustee is crucial, (depending on the employment scenario).
• All the members of SMSF fund are the trustees, who may exercise their right over pooled-assets.
• Benefits accruing to SMSF fund are tax free only if they are held till maturity. Post that they are subject to tax exemptions.
• Cost efficiency of managing SMSF is directly proportional to initial money contribution, as the contribution goes up, relative cost comes down.
• It is compulsory for all the members to go through the trust deed and abide by the rule structure.
• On the trustee’s perspective, one has to regularly update his/her both, investment strategy & estate plan, the two key determinant factors for the future returns.
• One cannot contribute beyond a certain cap as prescribed by ATO, non-compliance of the same would attract additional tax.

In a nutshell, choice of a super fund varies depending upon the trade-off between the fund control and risk appetite one covets to exercise over their respective investments.

Want to know more about SMSF? Contact our experts on 1300 707 326 or [email protected] today.