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Self Managed Superannuation Funds (SMSF)

Self Managed Superannuation Funds (SMSF)

Self Manged Superannuation Funds (SMSF) give you the ability to control how and where your superannuation funds are invested. SMSF continue to grow in popularity with the number of funds increasing from 350,000 in 2007 to over 500,000 today with more than 1,000,000 members. SMSF are growing by around 30,000 per year.

Most SMSF have 2 members and usually those members are husband and wife. Although they can have as many as 4 members. Each member must also be a trustee or a director of a company that acts as the trustee.

SMSF are not for everybody. As the Trustee you have the responsibility to ensure your super funds are invested in accordance with the relevant legislation. In addition you cannot have access to and/or enjoy the benefits of those invested funds before you retire. The Australian Taxation Office is the regulatory body who ensures you comply with the legislation.

A rule change in 2007 has enabled SMSF to borrow money to invest in assets. This is called a limited recourse borrowing arrangement (LRBA). To date the asset of choice for these arrangements has mostly been commercial and residential property. This is consistent with the average mum and dad investor’s preference to invest in bricks & mortar.

So, if you have a desire to be in control of how and where your superannuation funds are invested and have more than a passing interest in investing, then a SMSF may be good option. Contact Peron Accountants to see if an SMSF is appropriate for you.

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Peron Accountants provide a full service package for SMSF trustees, including:

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