Benefits of an SMSF

An SMSF provides you with more control over your financial future

Self managed super fund (SMSF) trustees can decide how their fund is managed and control where their money is invested. Our clients often report that having greater visibility over their retirement savings has led to a deeper understanding of how their overall wealth is tracking, and given them more confidence in their investment and lifestyle decisions. 

An SMSF can offer you significant benefits in retirement

There are a number of key benefits to managing your own SMSF:

Investment choice

SMSFs provide more investment options than any other super fund. Trustees can access direct shares, high-yielding cash accounts, term deposits, income investments, direct property, unlisted assets, international markets, collectables and more.

Tax strategies

Like all super funds, SMSFs benefit from concessional tax rates. In the accumulation phase, tax on investment income is capped at 15 per cent; in the pension phase there is no tax payable, not even capital gains tax. Carefully considered tax strategies can help trustees grow their super savings and reduce tax payments as they transition to retirement.

Flexibility

SMSFs allow multiple members to run a mixture of accumulation and pension accounts. Trustees can adjust their investment mix as it suits them, allowing for a fast response to changes in market conditions, super rules or personal circumstances.

Transparency

SMSFs offer significant transparencies that allow trustees to align their personal goals with their investment decisions. Whether you’re passionate about property, shares or sustainable and ethical investing, SMSFs allow you to better understand where your money is invested, with complete visibility over performance and tax treatment. 

Cost

SMSF trustees must lodge an annual tax return and audit, and pay ATO fees (these are capped and not based on a percentage of your super balance). The more an SMSF grows, the more cost-effective it becomes, but the total cost of running an SMSF will depend on the related investments and any costs associated with engaging professional support.

Consolidate super assets

An SMSF allows a trustee to combine their super assets with up to three other members (such as partners or family members). Consolidating super accounts immediately creates a larger fund balance, which increases the fund’s assets and investment opportunities – with only one set of fees.

Is an SMSF right for you?

It is important to understand that while there are numerous benefits to establishing an SMSF, there are also a number of considerations and risks to be aware of. These include trustee responsibilities, cost-effectiveness and insurance cover. Learn more about whether an SMSF is right for you.

Discover if self managed super is right for you

Find out how we can help you achieve your retirement goals by talking to one of our SMSF directors.