Self Managed Superannuation Funds

A Compass Financial Solutions authorised representative with SMSF authorisation can assist people interested in taking greater control over their superannuation in determining the suitability of a SMSF for their particular circumstances.

Together with Wardle Partners qualified accountants, a full advisory and administration services is provided.

Self Managed Superannuation Funds (SMSFs) are a popular superannuation structure with a total of over 3000 funds established each month (Jan 2013) and almost $500 billion invested across the sector. The money invested through SMSFs represents approximately 30% of all assets held in the Australian superannuation system. However, Self Managed Superannuation is not suitable for everyone, please discuss your individual situation with one of our licensed advisors.

SMSFs perform the same role as larger funds, by investing contributions and making them available to members on retirement. The main difference is that the members of a SMSF are also the trustees of the fund. They control the investment of their contributions and the payment of their benefits.

As individuals’ superannuation assets have grown, many people have sought to gain greater control over the day-to-day management of their superannuation, leading to a rise in popularity of the SMSF.

A SMSF has a number of unique characteristics. Some of these include:

  • A SMSF can have no more than four members;
  • No member of the fund is an employee of another member of the fund, unless they are related;
  • Each member of the fund must be a trustee of the fund, and each trustee must be a member. Where a company is appointed to act as the trustee of a SMSF, each member of the fund must be a director of the trustee company, and each director must be a member;
  • No trustee of the fund receives any remuneration for their services as trustee;
  • SMSFs are regulated by the Australian Taxation Office (ATO) whereas other types of superannuation funds are regulated by the Australian Prudential Regulatory Authority.

Whilst the trustees of a SMSF must act in accordance with the general laws governing all superannuation funds, a number of concessions apply including the ability of a SMSF to acquire certain assets (particularly listed securities and business real property) directly from members of the fund.

SMSFs offer some very real benefits to members, but at the same time, carry responsibilities and obligations.

A Compass Financial Solutions authorised representative with SMSF authorisation can assist people interested in taking greater control over their superannuation in determining the suitability of a SMSF for their particular circumstances.