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Frequently Asked Questions in SMSF

Frequently Asked Questions about SMSF

We, at SMSF Solutions Australia, do not provide any recommendations regarding whether a SMSF is suitable for you. Please consult with a qualified financial adviser to determine if this product is appropriate for your needs.

We provide the general public with answers to commonly asked questions about SMSFs. These questions and answers do not constitute advice or recommendations regarding our products or your financial situation.

Table of Contents

Starting an SMSF

  • Greater control over investment decisions
  • Seeking more flexibility in investment options
  • having the ability to include other family members as members or trustees. 
  • Be compliance with the Superannuation Industry (Supervision) Act (SISA) and other relevant legislation, as well as meeting reporting and administrative requirements set by the Australian Taxation Office (ATO)
  • Acting in the best interests of all SMSF members.
  • Developing and implementing an investment strategy that aligns with the fund’s objectives and risk profile.
  • Keeping accurate and up-to-date records, including financial statements and member statements.
  • Conducting an annual audit by an independent auditor approved by the ATO.
  • Lodging annual returns and other regulatory documents with the ATO within prescribed timeframes.
  • Avoiding prohibited transactions and investments, such as lending to members or acquiring assets from related parties, which could result in severe penalties.
  • Maintaining awareness of changes to superannuation laws and regulations that may impact the SMSF.
  • Seeking professional advice when necessary, especially regarding complex legal, tax, or investment matters.

It’s essential to understand these responsibilities and obligations before establishing an SMSF to ensure compliance and avoid potential penalties or legal issues in the future

  • Listed shares
  • Real property
  • Fixed income investments
  • Managed funds
  • Cash
  • Cryptocurrencies
  • Collectables – e.g., precious metals

Establishing and maintaining a Self-Managed Super Fund (SMSF) incurs various costs, this list only act as a guide

  • Trust deed
  • ASIC annual renewal fees for special purpose company $60+
  • Supervisory levy $259 per year
  • Accountancy fee
  • Auditor fee

Self-Managed Super Funds (SMSFs) are subject to strict rules and regulations governing investment activities to protect the retirement savings of members. It’s crucial to be aware of these restrictions,

  • including prohibited transactions (such as lending to members or relatives) and,
  • prohibited assets (such as personal use assets or assets acquired from related parties).

Non-compliance with these rules can result in severe penalties, including the disqualification of the SMSF and financial sanctions for trustees.

Two types of income in the SMSF

  • Ordinary Income Tax Rate: Ordinary income within an SMSF, which includes sources such as rent, dividends, distributions, and interest, is generally taxed at a concessional rate of 15%
  • Capital Gains Tax (CGT) Rates: Assets held for more than one year are typically subject to a 10% tax rate if the SMSF is eligible for the CGT discount. This discount is indeed 33.33%, resulting in an effective tax rate of 10%. Assets held for less than one year are taxed at the standard SMSF tax rate of 15%

Keeping records up to date can be cumbersome. With our streamlined process and seasoned accountants, we will provide you with a detailed checklist tailored to your fund’s circumstances.

Ask Us Questions

Having questions about an SMSF? Submit a question to us, and we will answer it at best we can.

SMSF Solutions does not provide any financial/investment advice.

SMSF Solution only provides general technical guidance to our client.

SMSF SOLUTIONS AUS PTY LTD & THE BROOK HILLS TAX ACCOUNTANT PTY LTD AS PARTNERS FOR ARCH PARTNERS ABN 67 487 335 799; TAX AGENT REGISTRATION 26214880

General Advice Warning:

No Advice Express or Implied: The information presented on this website is of a general nature and has not been crafted to accommodate the specific objectives, financial situation, or individual needs of any particular investor. SMSF Solutions refrains from providing financial product advice or endorsing any financial products, either explicitly or implicitly. It is explicitly stated that SMSF Solutions neither recommends nor represents any financial product or service available through its platform, including those established for your SMSF upon becoming a client. 

Seek Professional Advice from a Financial Adviser: SMSF Solutions operates on a no-advice model and does not dispense financial, legal, or tax advice to clients. It is strongly advised that clients seek appropriate professional advice based on their personal circumstances. A licensed financial adviser can assess an individual’s situation and provide recommendations suitable to their financial needs. All information on the SMSF Solutions website is factual and general in nature, and therefore, reliance on it should be avoided. Trustees bear legal responsibility for all decisions made, even if advice is sought from a financial planner. While financial professionals can offer guidance and assistance, ultimate responsibility for the fund lies with the trustees.

ARCH PARTNERS and its employees wish to acknowledge the Traditional Custodians of Country throughout Australia where we operate our business. We recognise their connection to the land, water and culture and wish to pay our respects to their Elders past, present and emerging.