Self-Managed Superannuation

City of Joondalup

AWT Accountants have developed a unique strong knowledge of Self-Managed Superannuation Fund (SMSF) tax strategies, compliance issues and administration details. We help you make sense of running your own superfund and assist you with annual reporting requirements, plus ongoing legislative compliance and advice. We also maintain ongoing relationships with your financial planners and estate planning specialists. Our services include:

SMSF Establishment
The establishment of a self-managed superannuation fund is normally only encouraged where it is evident that the value of the fund will be large enough to warrant the costs associated with the maintenance of such a fund.

The Australian Securities and Investments Commission (ASIC) recommends a minimum of $200,000 in assets or an expectation of achieving that amount quickly due to a high level of contributions.

Your retirement is something that you should start thinking about sooner rather than later. Our experience shows that if you plan for your retirement as early as possible you can relax and concentrate on working towards that plan.

A Self-Managed Super Fund (SMSF) is a form of superannuation fund that is controlled by the members, giving greater control over their retirement savings than other types of superannuation funds such as industry or retail super funds. This includes wider investment choice and greater control over investments and flexibility in the payment of retirement benefits, such as pensions and annuities, directly from the fund.

SMSFs must be established for the sole purpose of providing benefits to fund members on retirement. Or, if the member dies before retirement, a benefit to that member’s dependants. This is referred to as the Sole Purpose Test.

Investment Strategy
On establishing a self-managed superannuation fund, it is advisable to adopt a prudent investment plan.

To this end it is often worth considering seeking the advice of a professional financial planner who is skilled in this particular area. AWT Accountants are well placed to put you in touch with several financial planners who may be able to assist you.

Complying Superannuation Fund
In order to be a complying superannuation fund receiving the tax concessions, your fund has to meet the residency requirements.
If your fund is deemed non-complying, its assets and its income is taxed at the highest marginal rate. To qualify as a resident superannuation fund, your fund has to pass the residency test which has three elements:

1. your fund was established in Australia, or at least one of the fund’s assets is located in Australia 2. the central management and control of your fund is ordinarily in Australia 3. your fund must either have no active members or have active members who are Australian residents who hold at least 50% of:

  • the total market value of your fund’s assets attributable to super interests, or
  • the sum of the amounts that would be payable to active members if they decided to leave the fund

Your fund is required to pass all three elements. For the central management of the fund, any departure from Australia on a permanent basis for any length of time will not meet this requirement, however a departure on a temporary basis for up to two years will meet this requirement. A member is considered active if:

  • they are a contributor to the fund or
  • contributions are being made to the fund on their behalf

A member is inactive if:

  • they are no longer resident in Australia,
  • they are not making contributions to the fund and
  • any contributions made to the fund after they have ceased to be resident were in respect of the period in which they were Australian residents
Financial Statements and Tax Returns Preparation
We provide the following services for your self-managed super fund to ensure you meet your compliance requirements of your SMSF.
  • Preparing and lodging your SMSF’s annual income tax and regulatory returns
  • Preparing your SMSF’s annual financial statements
Administration of your Super Fund

Administration including the Maintenance of Statutory Records, including all necessary minutes of meetings.

Management of Audit Function

Organise the annual audit of your SMSF.

Tax Planning Advice
Depending on your individual situation, there can be a number of advantages of an SMSF.

These may include:

  • Tailored tax management on investment income and capital gains
  • Greater flexibility in investment choices and asset selection
  • Control over your total investment portfolio, with the ability to take account of the risk profile of all your assets, including those held outside superannuation
  • The ability to pool your resources with up to four fund members with similar financial objectives, such as family members
  • Maximum flexibility in establishing and managing pensions, including account based, transition to retirement and pensions
  • Greater flexibility for accessing Centrelink benefits such as the age pension
  • Investing in direct property
  • The ability to transfer personally owned listed shares, business real property and managed funds directly into your superannuation fund, and
  • The ability to own business real property in your superannuation fund, to assist your business cashflow