Why Self-Managed Superannuation Fund Can Be Beneficial For You?

May 19, 2021    taxreturnperth

If an individual is an SMSF or a self-managed superannuation fund trustee, he/she will get the chance to decide where they wish to invest their money and how they want to manage it. Many individuals have claimed that having outstanding visibility over their savings have led them to gain a much deeper understanding of how they are tracking their overall wealth. This has enabled them to gain more confidence in lifestyle and investment decision.

The ATO or Australian Taxation Office have provided evidence that there were about 600,000 SMSFs in Australia and has over 1-million members. The SMSF Perth is something that holds around one-third of the superannuation funds and stands out as the first choice for individuals who are engaged with retirement planning and superannuation.

How Exactly Will You Benefit Through SMSFs?

People opt for SMSFs for a countless number of reasons, out of which, having full control over how your superannuation funds are investments is one of the key reasons. The SMSFs will put the superannuation funds in the hands of an individual, and after that, he/she can decide what they wish to do with it. Also, if one doesn’t trust the general fund manager when it comes to retirement savings, they can call in an experienced financial advisor for the job. But above everything, there are many ways through which individuals will benefit greatly. Check below!

  • Tax Control: 

From structuring and timing pensions to tilting investment strategies to use the concessional tax treatment, the tax will get reduced. But for the majority of the retirement phase, one can claim your refunds for an access credit through ATO. When it comes to dealing with the taxable liabilities for the funds, individuals will receive flexibility. It’s because this particular fund only has one SMSF tax return even when there might be about four members for the fund and each of them has different accounts. 

When the fund has more than one member who is retired and is paying 0% tax, they can obtain the tax benefits by allocating the earning from those members who have not retired and belong to a 15% tax ecosystem. Interested individuals can speak with the tax consultant Perth to receive more information when it comes to controlling the tax. 

  • The Investment Choice:

Self-Managed Superannuation Funds will provide a person with a diverse range of investment options. He/she will have direct access to collectibles, term deposits, shares, international markets, cash accounts, unlisted assets, income investments, high-yielding, direct property, and many more. Apart from that, SMSFs will also provide individuals with access to derivatives to hedge their portfolio risk or provide downside protection. The SMSFs are also recommended to small business owners.

It’s because it will enable them to have a business property through the SMSFs and lease it back to the business. Doing so will free up the capital and provide individuals with a steady income through their SMSFs. It will also provide them with secure tenancy and grow their business.


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  • Asset Protection:

For many individuals, asset protection stands out as the main consideration, especially for business owners. Superannuation will transform into a structure that will protect the members from bankruptcy and litigation. If such events do take place, the superannuation funds will stay protected from the creditors. When a business venture fails, a business owner will only have the superannuation funds as the only asset. 

But since superannuation is intended only for retirement, one cannot utilize the superannuation funds to a business that is striving. To obtain more information on assets protection, it will be better to contact a tax accountant Perth because they can share some insights regarding it.

  • The Transparency:

A person will receive plenty of transparencies through SMSFs, which will enable them to align all their private objectives with their investment decisions with no hassle. When an individual is passionate about ethical and sustainable or property investing, the SMSFs will offer them a platform through which he/she will understand where exactly your money gets invested. Along with that, one will also obtain tax treatment and full visibility over the performance. 


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  • The Cost:

SMSF trustees need to lodge their audit, annual tax return and pay up the ATO fees, which are capped and not based on a percentage of the superannuation funds. The more SMSF grows, the more cost-effective or affordable it becomes. But the overall cost of operating an SMSF will depend entirely on the costs associate with engaging professional support and related investments. 

Final Words

SMSF or Self-Managed Superannuation Funds comes with many benefits. Apart from the benefits, it also comes with risks and considerations that you must understand. For such reasons, one needs to make all your decisions carefully, so that they do not experience any unwanted issue. SMSF will provide individuals with plenty of flexibility when it comes to drawing some pension from the funds. He/she can also tailor a strategy, which will provide them with tax income once they step into their retirement. The professional tax accountants are there to aid them if they need help or assistance with all the SMSF-related work.

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