Self-Managed Super Funds (SMSFs) have opened up an entirely new way of looking at and managing retirement savings. But along with this freedom comes compliance - and superannuation laws are not always straight cut! Luckily, that’s where we come in.
An SMSF expert can help an individual sign off on the compliance and adherence to the superannuation laws. Quality SMSF accountants can take care of tax planning for a trustee. There are often many concessions and deductions available, and an accountant can provide personalized advice to help optimize a fund.
What is an SMSF?
A Self-Managed Super Fund (SMSF) gives you control over your retirement savings. You become the licensee – and, therefore, the trustee – and you can now decide precisely how you'd like your SMSF monies to be invested. You have the final say on whether you'd rather invest in real estate (yes, you can even purchase a rental property with your SMSF), stocks, managed funds, or basically anything else. There's nothing like the thrill of being your own super fund manager.
But the benefits don't stop at the feeling of control. Because you manage everything personally, you can also save money, thanks to creative tax planning. For instance, your concessional contributions to your SMSF are taxed at only 15% (usually much less than if you held the income personally). What's more, all returns your SMSF enjoys are also taxed at a more favorable rate. And on the other side of the coin, you also need to remember the few areas that the ATO frowns upon, like lending money to fund members (or their relatives) or providing a home to a relative.
Benefits of Hiring an SMSF Accountant
A Self-Managed Super Fund (SMSF) accountant knows all the complex laws and rules, both old and new, that cover super funds. You will not make those very expensive mistakes from breaking the rules/laws.
You do not have to spend any time doing the dreaded end of year tax and compliance paperwork—you would instead spend this time thinking about your super investment strategy and your best, most enjoyable, retirement options (you do not have to know anything about accounting).
Your accountant will not let you make the risky compliance mistakes—you will not have to pay for those very expensive compliance penalties that will come straight out of your own superannuation savings (this alone is a very huge problem with having your own SMSF).
Seeing an SMSF accountant will help you according to your own personal finance situation. If you speak to an SMSF advisor (who is also a qualified accountant), they can provide you with some analysis and a long-term superannuation plan to suit your general attitude to risk, and when you plan to retire. You can then use this to make better decisions about where your money goes and be more scientific in managing your SMSF portfolio. You'll likely grow your wealth (your financial state, your life!).