SMSFs Overview
Superannuation contributions can produce taxation savings and creating and retaining assets in a superannuation environment can be an important part of an overall wealth creation and asset protection strategy.
Our Approach
Daniel Rands, the director of PKF Tasmania, is licensed to provide SMSF advice through the SMSF Advisor's Network (SAN). This is principally related to strategy and not investments or insurance.
Our preference is to provide trustees with factual information regarding superannuation and taxation laws and to help trustees identify options.
We also work with licensed financial planners where personal advice is needed by trustees and when investment or insurance advice is needed.
Establishing an SMSF
Establishing a self-managed superannuation fund (SMSF) provides the members of a fund with significant control over their retirement investments and flexibility in the way that the assets are acquired, invested and managed for overall benefit.
Setting up your own SMSF is relatively straight forward but it is easy to overlook many vital aspects of the process which that need to be properly addressed. The choice of who should be the trustee, for example, is a critical consideration and needs to be appropriate to the situation. It is essential that proper advice is obtained on all aspects of the establishment process. PKF can work with investors considering an SMSF to evaluate whether it is appropriate for them and advise on the correct structure.
An SMSF can now have up to six members, all of whom need to be directors of the trustee. An important decision, however, is whether six in a fund is a good idea or whether multiple funds would be better.
SMSF Benefits
Properly implemented, superannuation contributions are tax deductible, superannuation investments can accumulate in a concessionally taxed way and retirement benefits can be paid out with low or no tax. It is therefore important to focus on making the most of taxation concessions available and to ensure that the fund complies with all applicable laws and requirements.
Superannuation entitlements are largely protected from liquidators and bankruptcy claims. However, it must be remembered there are legislative safeguards to ensure this protection is not exploited improperly. See details of a recent Court decision affirming this here.
Because superannuation assets can go to your dependents and attract little or no tax, it is essential to integrate the SMSF into your estate planning. This is a key area where PKF works with the trustees, financial planners and solicitors to achieve peace of mind.
SMSF Borrowing
Historical rules which prevented SMSF borrowing for investment purposes have been changed and this has resulted in many people buying real estate with an SMSF. There can be significant benefits with these investments but the law and Australian Taxation Office requirements are complex. PKF can provide clarity in identifying your alternatives and guide you through the legislation.
PKF can help trustees through the whole life cycle of the SMSF from set up to paying benefits, through estate planning and tax effectively winding up a fund. Our help will identify your legal obligations and avoid situations where your SMSF runs the risk of being non-complying.