A Self Managed Superannuation Fund (SMSF) is a small superannuation trust that has the primary purpose of providing retirement benefits to the members, where the members themselves act as trustees. This means that the members control and run the super fund.
Self managed super funds operates in much the same way as other types of super. The trustees hold the assets of the super fund for the benefit of the members. In a self managed super fund the members, being also the trustees, hold the assets of the super fund. As the members hold the assets, they have complete security, control and flexibility over their superannuation.
The members, being also the trustees, develop the investment strategy, make investment decisions and invest accordingly.
Self managed super funds can invest in almost any investment products (subject to certain restrictions). These include commercial and residential property directly, and other more exotic assets. Typical investments include:-
- Property
- Cash
- Term Deposits
- Government and Private Bonds
- Australian Shares
- International Shares
- Managed Funds
- Artwork
- Listed and unlisted Property Investments.
Generally, a self managed super fund is defined as a superannuation fund where:
- There are fewer than five members,
- All the members are trustees, and
- No trustees receive any remuneration for their trustee services.
Almost anyone can set up a self managed super fund. The fund will need to be audited by competent external auditors every year. This may be your accountant or we can arrange for an auditor to undertake this task for you. The auditor will review all your documentation and transactions to confirm you are acting within the superannuation laws.