Self-Managed Super Funds
Superannuation is a long-term savings arrangement that operates primarily to provide income for retirement. It involves employers, the self-employed and employees making contributions over a period of time to a superannuation fund.
SMSF – “are a way of saving for your retirement. The difference between an SMSF and other types of funds is that, generally, the members of a SMSF are also the trustees.”
A self-managed superannuation fund (SMSF) has to meet the following conditions:
• It has less than 5 members;
• Each individual trustee of the fund is a fund member;
• No member of the fund is an employee of another member of the fund, unless those members are related;
• No trustee of the fund receives any remuneration for his or her services as a trustee.
A SMSF can also have a company as a trustee (known as a corporate trustee) if:
• Each director of the company is a member of the fund;
• The fund has less than 5 members, no member is an employee of another member (unless related) and the trustee does not receive remuneration for their services as a trustee.
Advantages of SMSF:
• They can have greater investment freedom;
• They can actively participate in the management of the fund;
• There are reduced formal reporting requirements; and
• Often more flexible retirement planning and estate planning options are available.
If you are interested and want some further information please contact Grubers Beckett Chartered Accountants Office. We can help you!
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