Self Managed Super Funds (SMSFs) - Benefits

A Self Managed Super Fund's (SMSF) main benefit is that it provides you with complete control over investments of the fund. You decide what to invest into and you decide when to buy and sell. Subject to legislation and your trust deed, you are able to invest in a wide range of assets through your fund.  You can invest in:

  • Shares
  • Managed funds
  • Unit trusts
  • Cash
Lower Costs

Most retail super fund, industry funds and the like charge a percentage of your members balance as their management fees. For example, a $500,000 retail super fund with management fees of 2% would cost you $10,000 pa to run. At higher levels a SMSF can be potentially run at a much lower cost. It’s important to note that for very small funds costs can be a higher percentage of the overall fund size and a retail super fund may prove to be more cost effective. A discussion with one of our advisers will enable you to make an informed decision as to the suitability of a self managed super fund.

Tax effective death benefits

Family members who are dependents for tax purposes may be able to obtain death benefit payments tax free (within limits) upon death of a member of a SMSF, thereby possibly providing a tax effective way of distributing assets.

A Self Managed Super Fund can be passed down from generation to generation

SMSFs benefit not only those who establish the fund during their lifetime, but also their children and future generations as it is passed on from generation to generation.

Transferring existing Investments

SMSF’s are allowed to accept undeducted “in specie” contributions, allowing members to contribute shares, other listed securities and commercial real estate in lieu of cash. The benefit of this is twofold as mentioned above. Firstly, you can transfer certain income producing assets from a high tax environment (eg 46.5%) to a low tax bracket (15%). These assets are then potentially protected from creditors since it’s the SMSF trust that owns the assets.