Self Managed Super Fund Audit & Compliance

Invest with more control


 At the end of the September 2020 quarter, superannuation assets totalled $2.9 trillion, with self-managed superannuation representing around a third of all the funds invested. As of October 2020, there was more than $733 Billion held across approximately 593,375 self-managed funds.


The strength in this sector is driven primarily by individuals seeking more diverse investment options, which retail superannuation just can't provide.  Like other superannuation funds, SMSF is a simple a way of saving for your retirement. The difference is that the members of an SMSF are the trustees, who ultimately run the fund for their own benefit. In short, setting up a SMSF allows you to take control of your money and where it’s invested.



Who is SMSF for?


[Copy] A SMSF isn’t for everyone. To establish a fund it is preferable to have investable assets equal to $200,000 or more across a maximum of four members. This allows small groups with mutual interests, such as families, to combine their super and gain greater purchasing power.


Before deciding to set up a SMSF you need to consider the ongoing administration costs and be willing to accept the strict regulatory responsibilities placed on trustees.



What are the benefits?



With a well-structured SMSF you can take control of your superannuation assets, determining how and where your funds are invested and how the fund is going to operate.


Investment Options

The fund can invest in a wide range of investments including shares, direct property, currencies, commodities and personalised structured investments. Since the 24th of September 2007, a SMSF can also secure mortgages enabling you to buy property which you couldn’t otherwise afford. In fact, the fund can essentially buy any asset that suits the investment objectives of the fund provided it meets the sole purpose test.


Tax Concessions

Investing in a SMSF has tax advantages that make superannuation a tax efficient wealth creation strategy.


  • Concessional contributions are taxed at a maximum rate of 15%.* (Note: from July 2012, extra 15% contribution tax can apply to member with income over $250,000)

  • The concessional 15% tax rate also applies to income of the fund

  • Realised capital gains on investments held for more than 12 months are taxed at an effective rate of 10%

  • Tax can be lowered through the use of franking credits and the offsetting of capital losses

  • SMSF’s who purchase property via a debt instalment warrant can claim interest costs deductions on top of the depreciation benefits associated with the property. These deductions can have a significant effect on reducing the tax liability of the fund

  • For concessional tax treated pension payments, once in pension phase, there is no income tax or capital gains tax on the super fund’s income. Pension payments to members over the age of 60 are also tax free in their hands


Asset Protection

When structured correctly a SMSF can be highly effective in protecting the assets of members. Superannuation assets are typically protected from creditors in the event of bankruptcy.


Setting up a SMSF


As a full-service financial services company, we’re in a unique position to help you establish and manage all areas of your SMSF investment with a six-step process:


  • Establish a SMSF trust deed.

  • Appoint up to 4 trustees of the fund - all trustees must be members

  • Become a regulated fund

  • Register your details with the ATO (Australian Tax Office)

  • Establish a bank account for the SMSF

  • Establish an investment strategy for the fund


Trustee Considerations

The trustee can be either individual trustees or a trustee company, and all members are required to be either a trustee or directors of the trustee company.

A fund cannot have a sole individual as a trustee, so for single member funds there are a number or options. The member can become the sole director of the trustee company or appoint a second person (not an employer) to act as the trustee of the fund.

When using a trustee company, remember all members must be directors of the trustee company. The Trustee's duties are governed by the Superannuation Industry Supervision (SIS Act) 1993, and trustees are required to:

  • Act honestly in all matters concerning the fund

  • Exercise the degree of skill and judgement of an ordinary prudent person when handling the financial affairs of another person

  • Act in the interests of the members and their beneficiaries

  • Meet the requirements of SIS

  • Maintain records and discharge ATO requirements

  • Comply with investment restrictions


How can Perry Egan Partners Help?


Perry Egan Partners can help you in all areas of SMSF or in any of the following specialities:

  • SMSF Establishment

  • SMSF Property Warrant establishment 

  • SMSF Compliance and Audit 

  • SMSF Mortgage Structuring 

  • SMSF Investment Strategy and Advice 

  • SMSF Investment Property Selection