If you have the right team working with you, SMSs aren’t as complicated as some super companies would like you to believe.
A. Your SMSF is a special type of super fund, which holds member assets and invests to build income for your retirement. You get to choose where your money is invested (through your own research or through a qualified financial adviser) across Australian and international shares, government bonds, term deposits, property and cash.
A. The Australian Taxation Office (ATO).
A. The main difference between is the level of control you have over the investments made with your money. The members of a SMSF are usually also the trustees – you run your SMSF for your own benefits and are responsible for meeting all super and tax laws and requirements.
A. The Trustees make all investment decisions and are responsible for all legal obligations.
A. It depends on your individual circumstances, but most people who have a balance of $120,000 or more in their existing super accounts will benefit from taking control through a SMSF to improve investment returns. There is no legal requirement for how much money you need to establish a SMSF. It depends on what you want to achieve with your super fund. Sure, ongoing costs for smaller amounts in a SMSF is expensive. On the other hand, strategies you can use within an SMSF aren’t available in other type of super funds. Many families ‘combine’ their super to make a SMSF affordable.
A. When you first meet with a qualified specialist SMSF adviser, depending on how complex your situation is, you can expect to pay around $2,400.
A. Yes. Talk to your qualified SMSF specialist adviser about single-member SMSF's and the best structure for you.
A. Look for a qualified SMSF specialist adviser (with a proven track record in SMSF set up and administration) and get a quote before agreeing to any work. Customer service should be a priority so that you can talk to someone about your fund and your finances when you need to.
A. Setting up a Corporate Trustee account and an up-to-date Trust Deed costs around $1,600. This allows you to establish and register your super fund and apply for an Australian Business Number (ABN) and Tax File Number (TFN) for the fund.
A. Most SMSF's are established with a Corporate Trustee. Your SMSF will also need an up-to-date Trust Deed which meets all current legal requirements.
A. Our adviser should provide you with a Statement of Advice (SOA). A SOA sets out the advice your adviser has given you, what information you provided, and the advisor payments or benefits.
A. Approximately 4 weeks including establishing Trust Deeds and Corporate Trustees, and rollover of your existing superannuation.
A. The basics of making sure your SMSF is compliant – is legal and meeting ATO requirements – is paying an annual account keeping fee to get your tax return completed and an ASIC approved Auditor’s fee for an annual audit of your SMSF.
A. A company is established as the Trustee of the Bare Trust. The Bare Trustee will hold the Property for the SMSF.
A. Your annual account keeping fee and ASIC approved audit fee shouldn’t be more than $2,200 a year (although some complex funds may be up to $2,500. Other costs will apply if your SMSF borrows to invest or you have a ‘Bare Trust’.
A. An SMSF itself cannot borrow money, so a Bare Trust is put in place under a Limited Recourse borrowing arrangement.
The trustee of the Bare Trust is the entity that holds legal title to the property on trust for the Super Fund.
A. All administration and compliance work for your SMSF is carried out at our Brisbane office.
A. Horizon does not offer financial advice. Horizon can refer you to SMSF specialist advisers who are licensed to provide investment advice and assist with strategies for SMSF Trustees.
A. The establishment cost to borrow from your SMSF to buy property should be around $2,000.
A. Yes, under some rules. A SMSF can use a limited recourse borrowing arrangement (LRBA) to buy property.
A. Talk to a SMSF coach (typically a SMSF specialist adviser) for investment strategy, structure and education.
A. Yes. An SMSF can invest in managed funds that borrow money (geared managed funds) or in instalment warrants, warrants, options or contracts for differences. Note that the interest on the amount borrowed is tax deductible to the SMSF.
A. Yes. Business premises can be transferred as an in-specie (non-cash) contribution, subject to contribution limits and other conditions. Ask your SMSF specialist adviser about tax obligations and opportunities.
A. Yes. SMSF's can invest in residential, commercial, industrial and listed and unlisted property investment funds. Be aware of specific rules governing use of property bought via a SMSF.
A. No. A fund member cannot sell a residential property they own to the SMSF..