There are many benefits of having a Self Managed Super Fund although it's also a big responsibility. Super is meant for your retirement although there are many rules and regulations about how Self Managed Super Funds are maintained and when you can actually access them.
The ATO and ASIC want to ensure anyone considering setting up or joining Self Managed Super Funds has the information they need to make the right decision. If you have heard about the benefits of Self Managed Super Funds and want to create your own, there are many factors you need to consider.
To decide whether you are eligible for the benefits of Self Managed Super Funds and if it's right for you, it's important you take the following steps:
- Consider your options
- Ensure you have enough assets, time and skills to maintain a Self Managed Super Fund
- Follow the laws (superannuation and tax) associated with Self Managed Super Funds and acknowledge the risks
- Tailor your investment strategy to suit your Self Managed Super Fund
- Be sure you are organised and have the time available for record keeping and reporting requirements
- Understand your annual auditing requirements
In addition, recent changes to Self
Managed Super Funds have made it possible for funds to be used to
purchase an investment property.
As a result of the changes, a significant number of Self Managed
Super Fund owners are turning to the property market to invest
rather than playing the volatile stock market.
You are able to purchase any type of property - residential, commercial or even a holiday unit provided it's used as an investment. You can transfer the property from the fund to your own name after you retire and if you wish, at that time make it your residence.
One of the principal attractions for Self Managed Super Fund holders are the substantial tax benefits. A Self Managed Super fund enjoys the lowest rate of tax of any entity structure in Australia. The fund pays a maximum rate of 15% which can be reduced by offsetting other tax credits.
For instance, a person in their fifties who buys an investment property in normal circumstances and sells 15 years later to fund their retirement, has to pay capital gains tax which can amount to a considerable sum. If the same property is held within a Self Managed Super Fund, the tax can be reduced to zero if the property is sold after the super switches to 'pension phase'.
If you would like more information
on the Benefits of Self Managed Super Funds and how we can help
you, call our Customer Service and Sales team on 1800 652
224 or email via enquiries@easyplan.com.au