Self-Managed Super Funds (SMSF)

Almost anyone can have a self-managed super fund!

Being a member of an SMSF also means you are a trustee of the SMSF, or a Director of corporate trustee (a company).

SMSF trustees need to declare that they:
1. Have no prior convictions for offences in respect to dishonest conduct;
2. Are not an insolvent under administration;
3. Are not subject to a civil penalty order; and
4. Are eligible to be a member of the SMSF.

There is no defined amount for an SMSF starting balance, rather the starting balance is one of a range of factors that needs to be considered before starting an SMSF.

The starting balance and any future balance changes are important when assessing the cost-effectiveness of an SMSF for your personal situation.

The SMSF Association found SMSFs with $200,000 or more can be competitive with industry and retail funds in terms of costs and performance.

An SMSF financial adviser can provide advice in determining if an SMSF is suitable for your personal circumstances and provide ongoing advice to support your investment and personal goals as they change throughout the stages of your life.

An SMSF financial adviser assists you with making an informed decision based on your goals and objectives.

You can receive general or personal financial advice, including SMSF advice from a qualified and licensed financial adviser.

The team at Canny Wealth are here to help.

General advice does not consider your personal situation or impact on the advice on you personally.

Personal advice considers your personal situation and your goals, providing personalised advice in your best interests in a range of areas, such as:
- Contributing to superannuation;
- Commencing an income stream (also known as a pension);
- Developing a retirement plan;
- Establishing and maintaining an investment strategy; and
- An option for year-round regular and ongoing advice.

No, it is not mandatory to use a financial adviser to establish and maintain a self-managed super fund.

While financial advisers aren't required, an SMSF is not a 'one-size fits all' type of superannuation fund, so its is important to seek professional advice when setting up and running an SMSF to determine if an SMSF is appropriate for you.

Qualified and licensed financial advisers can help you set up your SMSF correctly and ensure you comply with all the rules.

Costs for SMSF can vary each year, depending on the professional services you engage to help support your management of the SMSF.

All SMSFs are required to pay an annual supervisory levy to the ATO and will need to pay for a yearly independent audit. Many SMSF trustees also pay for additional help in such areas as:

- Accounting services for the preparation of financial statements, annual returns and fun administration;
- Actuarial certificate fee, if the SMSF is paying an income stream;
- Financial advice services for personalised advice;
- Investment fees;
- Legal fees;
- Insurance policies for members; and
- Valuation fees for unlisted SMSF assets, such as real property.

This list is not exhaustive, and you may pay more fees in an SMSF that you would in another superannuation fund. Considering the advantages and costs of running an SMSF is an important step in your potential SMSF journey.