A Guide to Investing in Property Using a Self Managed Super Fund

Size: px
Start display at page:

Download "A Guide to Investing in Property Using a Self Managed Super Fund"

Transcription

1 A Guide to Investing in Property Using a Self Managed Super Fund Why would I consider a SMSF? I already have a super fund. Self Managed Superannuation Funds (SMSF s) are the fastest growing sector of the Australian superannuation (super) industry. They are currently one of the most popular super investment vehicles in Australia. This document provides you with a general guide about SMSF s. The harsh reality is that a significant number of Australians who aim to retire in the next decade will wake up to the grim reality that their superannuation nest egg will not provide them with a comfortable retirement. Why? The average life expectancy in Australia is now 82 years, an increase of 5 years from For the average Australian retiring at 65, this is 17 years or 884 weeks of retirement. In 2011, The National Centre for Social and Economic Modelling (NATSEM), found the average Australian woman aged 55 to 64 years was estimated to have an average superannuation balance of about $54,500. The average Australian male superannuation balance is estimated to be $113,200. This would realistically translate into 2 to 3 years of income in retirement before the funds are completely exhausted. This is the shocking reality being faced by thousand of retiree s. After just 3 years of retirement, they are facing 728 weeks (14 years) of struggling to survive on the pension. This predicament has been compounded by the fact that thousands of investors would have been better off putting their super in a cash account or term deposit as many reputable super funds have consistently under performed over the past decade. SuperRatings found the average fund has returned just 2.5% a year since 2006, while annual inflation has been 2.9% over the same period of time. This means a $100,000 investment in an average balanced superannuation fund in 2006 would, in real terms, be worth only $98,000 today. You can understand why more Australians want to take control of their super funds to better utilise favourable government tax incentives with the belief that they can generate better returns than highly paid fund managers they have never met. This document outlines the benefits of SMSF s and asks whether it might be the right retirement investment strategy for you. Additionally, this document is a brief introduction to superannuation funds for those who are not aware of how SMSF s can be established in Australia. The information provided in this report should only be used as a general guide and you should always seek professional advice from a qualified Blackburne Finance & Investment adviser before making any decision in relation to your financial position. 1

2 What is Superannuation? Superannuation (super) in Australia is money accumulated and set aside for your retirement over your lifetime of employment. For most people, accumulation of super begins when you start working and your employer commences paying the mandatory Superannuation Guarantee (SG). The SG requires employers to pay 9 % (indexed to increase to 12 % by 2020) of your salary or wage into a approved super fund. The intention is to create a significant sum of money to fund your retirement. You have the choice of which superannuation fund to use and how to invest these funds until your retirement. However, over 70% of Australians trust their retirement to strangers (fund managers) they have never met. You can also increase your superannuation balance with your own additional cash contributions to take advantage of super s favourable tax incentives. The Australian Federal Government taxes superannuation monies at significantly lower rates than normal savings if the super fund complies with certain conditions. Superannuation funds pay income tax at a flat rate of 15% and capital gains tax of 10% if an asset is held for longer than 12 months while the fund is in accumulation phase. The favourable tax benefits experienced when accumulating investments in super combine to produce a larger benefit for retirement. Additionally, you have the potential to completely eliminate capital gains tax. When your super fund changes from the accumulation phase to the pension phase and the beneficiary is over 60 years old, capital gains tax is not payable whenever assets within the super fund are sold. Australian s have over $1.3 trillion dollars invested in Australian super funds. Incredibly, SMSF s now exceeds $442 billion of the total amount invested in super funds. With new SMSF s being established daily, this sum continues to grow. It is important to know where to invest your money in order to maximise your retirement earnings. The key to this is firstly knowing, which most hardworking Australian s, due to lack of clear information, don t really understand. Through no fault of their own, for most people, the selection of the correct investment strategy for such an important asset is given very little consideration due to a lack of time and understanding of how critical superannuation is. What is a Self Managed Super Fund? SMSF s allow you to take on the responsibility and control of your superannuation investments for your retirement. SMSF s perform the same role as other super funds by investing your mandatory employer paid SG contributions and other contributions which then become available at retirement as a nest egg. Generally, a Self Managed Super Fund is defined as a super fund where: 1. There are up to four members, 2. All the members are trustees, and 3. Trustees do not receive any remuneration for their trustee services. 2

3 The difference is that the members of SMSF s are also the trustees. Trustee s control the investment strategy in relation to the contributions and investment returns. With all members being trustees, they are in a position to ensure their funds are invested appropriately. They have complete security, control and flexibility over their super. The members, being the trustees, develop the investment strategy. This is usually in conjunction with appropriately licensed advisors who assists the trustee s to make investment decisions accordingly and appropriately. Through their SMSF s, trustee s can invest in almost any asset type (subject to certain restrictions). This includes - Cash, term deposits or fixed interest securities Listed or unlisted shares Managed funds and units trusts Foreign exchange and derivatives Collectables such as artwork and rare coins Property, residential and commercial. Being able to invest directly in residential property is a significant point of difference to industry super funds. Generally industry super funds only invest in property through Listed and Unlisted Property Trust s that are again managed by other people. A SMSF can combine the super balances of up to four people. For example, four friends or family members can take individual super balances of $50,000 each to create a single SMSF with combined assets of $200,000. Collectively, this SMSF can now invest in assets such as direct residential property whereas individually, each person would not be able to do so due to insufficient funds. When structured correctly, the costs of having a SMSF can be and are often lower than the fees charged by retail superannuation funds. The cost of running a SMSF can also produce savings where a fixed rate fee for service is lower than commissions traditionally paid to fund managers. Establishment fees are a once off and the accounts are lodged with the Australian Tax Office after being prepared by an accountant and assessed by an approved SMSF auditor. In Australia, there are now more than 450,000 SMSF s in existence. The value of assets residing in these vehicles currently stands at $442 billion and continues to rise fast with direct property investment activity increasing significantly following regulation changes in 2007 that permitted borrowing of funds. Self Managed Super Funds and Property In 2007, new Australian Tax Office (ATO) rules were introduced which allowed self managed super funds to borrow money under limited recourse borrowing arrangements with banks. Subsequently, these new rules have made it significantly easier for SMSF s to acquire direct investment property. Previously, a SMSF required the available funds to purchase the property in full including purchase costs. However, SMSF s can now acquire direct property with a deposit plus stamp duty and purchase costs with the balance being paid by a bank loan. This is the same as buying your own home, paying a cash deposit of 20% and borrowing the remaining 80% plus costs from the bank to buy the property. The loan is a limited recourse loan which means in the event of default, the bank cannot personally pursue the trustee s assets outside of the SMSF. The liability is limited to the asset which has entered into the limited recourse borrowing arrangement. The Super Industry Supervision Act (SISA) of 1993 is a set of strict guidelines in relation to how you can legally use your SMSF to borrow funds and purchase a property. Placing your super in property may seem complex. However with the right advice, it is possible to comfortably access this type of investment and substantial reduce tax. 3

4 Source: Australian Bureau of Statistics It is easy to see why buying property with a SMSF has been the preferred super investment strategy for so many Australians. The housing market has traditionally been a popular investment in Australia as it is broadly considered as a relatively stable and conservative investment (as can be seen in the chart above). If you use a SMSF to purchase a property, you will not only receive the rental income but also enjoy considerable tax savings compared to investing in property outside of a SMSF. Outside of a SMSF, individuals can pay up to 47% capital gains tax. In a SMSF, when you decide to sell the property you will only pay 10% capital gains tax if you are under 60 years of age and still in the accumulation phase. If you are over 60 years of age and in the pension phase, you will pay zero capital gains tax. The tax saving in relation to one property alone can be in the tens, if not hundreds of thousands of dollars. That may be the difference between a restricted retirement and a comfortable retirement. What are some of the criteria to buy property in a SMSF? There are a number of criteria which you need to meet in order to purchase a property using your SMSF. Some of these criteria are: The bank loan for the purchase of the property must be a limited recourse borrowing arrangement. The property cannot have major renovations or upgrades made whilst in the SMSF. When purchased, the property must not be a residential property owned by one of the trustees or their dependents. It must also not be a property in which any of the trustees or their trustees live. There are no redraw facilities allowed on such a property however an offset account can be used. Most importantly the fund must also prove that the sole purpose of the investment is for the retirement benefits of the trustees or their dependents. The type of property you intend to purchase must also be in line with the ATO rules. To achieve a compliant SMSF borrowing arrangement, you must satisfy your lender that the property complies with the legislation and guidance rules set by the ATO and that you will not use your loan for restoration or renovation of your property. Without the above being met, it will be difficult to purchase property in your SMSF using a limited recourse loan and meet the ATO and SISA requirements. 4

5 Why use your SMSF to invest in property? The key benefits of a SMSF is choice of asset class, tax control with substantial tax incentives, estate planning, limited recourse borrowing arrangements and the competitive costs of running a SMSF. SMSF s can be an extremely effective investment opportunity that provides attractive tax relief and other benefits whilst maintaining a flat annual fee. You can expect a 15% flat tax rate on income into the SMSF. With the deductible components of a rental property you can further potentially reduce the taxable amount of income to zero. You can expect a maximum capital gains rate of 10% (having held the asset for greater than 12 months) while in accumulation phase, and if you sell the property in the pension phase after your 60th birthday the capital gains tax is zero. The pooling of money allows the super fund to buy a portfolio of property thus spreading any investment risk and cross property returns. What are the risks with SMSF s? There are a number of risks associated with SMSF s that require careful consideration before proceeding. With this much control and flexibility comes the ultimate responsibility to the nature of the investments you, as trustee, undertake. Various types of securities and investments can be more risky, harder to liquidate if required and can increase the administrative burden on the fund when it comes to valuations. Ensuring you make investment decisions that are compatible with your risk strategy is essential. Professional advice from your Blackburne Finance & Investment advisor can assist you in determining your risk profile and suitable investment strategy to suit. Inappropriate estate planning for a member can result in the wrong person assuming control of the fund and the death benefits being distributed at their discretion. Professional management of binding death nominations by your Finance & Investment advisor should be considered. When considering using borrowings in a SMSF, it is essential that the correct gearing model is complete before committing to an investment. Incorrect cash flow modeling within the SMSF can inadvertently lead to the SMSF becoming non compliant at the time of audit. Your Finance & Investment advisor can provide appropriate and conservative modeling BEFORE making any investment commitments. Many trust deeds do not contain the correct provisions to allow the establishment of borrowing to purchase property which can leads to delays in settlement and penalty interest being charged by the seller. Do Trustee s Need Personal Insurance? Under the ATO recommended steps for establishing a SMSF, SMSF trustees are obligated to consider the most appropriate personal insurance cover as part of their investment and risk management strategy. SMSF trustees are usually able to take out insurance cover for any of the SMSF members. The range of insurance products and the benefits available to SMSF s is generally greater than those that are offered through regular public offer superannuation funds. In many instances, the cost of the premiums can be met from the SMSF. Trustee s should be aware, however, that they have an annual compliance obligation to the type and level of cover each member of the fund may need and whether or not this should be held in the fund. In making insurance policy decisions, trustees should also understand the conditions of release. Some benefits paid by insurers, such as partial income protection benefit, may get stuck inside the fund if the circumstances of the claim fail to meet the conditions of release. 5

6 Report Summary The decision about how to structure your SMSF is not a straight forward one. It is important to consider all your options when deciding where to invest your retirement funds. A Self Managed Super Fund is an excellent option for many people to potentially provide a comfortable retirement and as such SMSF s are a popular super choice across Australia. However, it is essential that you receive the correct advice before deciding to establish a SMSF. SMSF s are not the easiest of super funds to set up or to subsequently manage. However Blackburne Finance & Investment will be able to assist you in the process and make it a lot easier. Once you begin to learn its intricacies, you will understand why SMSF s are such a popular and effective retirement vehicle. However you must also be willing to take on the significant responsibilities that being a SMSF trustee entails. With the correct team of consultants, much of this responsibility is met for you. Is SMSF potentially right for you? Take this quick quiz to see: Do you want more control over your super investment strategy? Would you prefer to invest in direct property that you choose? Do you have at least 10 years until you are 65 years old? Would being able to use bank funding potentially increase your super returns? Do you, or combined with three other people, have at least $150,000 in your super now? Thank you for taking this quick quiz. If you ticked the last box and any other boxes, you might be able to benefit from a self managed super fund. Please feel free to call Blackburne Finance & Investment on to discuss your quiz results. If you are prepared to take the step into a SMSF, then the potential for better returns, tax control, effective wealth transfer, asset protection and peace of mind become a potent combination. This can take the quality and security of your retirement to a new level Hay Street West Perth, WA 6005 PO Box 422 West Perth 6872 P: blackburneinvest.com 6

Your guide to a total solution Ascend self managed super

Your guide to a total solution Ascend self managed super Your guide to a total solution Ascend self managed super The big picture ISSUE 2 - SEPTEMBER 2009 Components of an SMSF If one member only If 2 to 4 members What is a self managed super fund? Member trustee

More information

SMSF Trustee Companion

SMSF Trustee Companion If you are thinking about setting up a SMSF, there are a number of decisions you will need to make regarding the structure, operation and management of your fund. To help you understand the process and

More information

Self Managed Superannuation Funds

Self Managed Superannuation Funds Self Managed Superannuation Funds You have as much choice and control over an investment property using your superannuation funds as you would by investing personally Self Managed Superannuation Funds

More information

A Financial Planning Technical Guide

A Financial Planning Technical Guide Self Managed Superannuation Funds A Financial Planning Technical Guide Securitor Financial Group Limited ABN 48 009 189 495 AFSL 240687 Contents What is a self managed superannuation fund (SMSF)? 1 What

More information

Self managed superannuation funds. A Financial Planning Technical Guide

Self managed superannuation funds. A Financial Planning Technical Guide Self managed superannuation funds A Financial Planning Technical Guide 2 Self managed superannuation funds What is a self managed 4 superannuation fund (SMSF)? What are the benefits? 4 What are the risks?

More information

PRODUCT DISCLOSURE STATEMENT. 02 9331 8664 admin@nowinfinity.com.au www.nowinfinity.com.au PO BOX 1409 Potts Point NSW 1335 ABN 16 154 927 376

PRODUCT DISCLOSURE STATEMENT. 02 9331 8664 admin@nowinfinity.com.au www.nowinfinity.com.au PO BOX 1409 Potts Point NSW 1335 ABN 16 154 927 376 PRODUCT DISCLOSURE STATEMENT 02 9331 8664 admin@nowinfinity.com.au www.nowinfinity.com.au PO BOX 1409 Potts Point NSW 1335 ABN 16 154 927 376 SMSF Product Disclosure Statement CONTENTS SMSF Product Disclosure

More information

GUIDANCE NOTE - SMSFS & PROPERTY

GUIDANCE NOTE - SMSFS & PROPERTY GUIDANCE NOTE - SMSFS & PROPERTY GUIDANCE FOR CPA AUSTRALIA PUBLIC PRACTITIONERS FINANCIAL ADVISORY SERVICES The decision to establish a self-managed super fund (SMSF) requires careful consideration. While

More information

THE SMSF ESSENTIALS GUIDE. The ultimate starter guide to setting up, running and effectively using a Self Managed Superannaution Fund

THE SMSF ESSENTIALS GUIDE. The ultimate starter guide to setting up, running and effectively using a Self Managed Superannaution Fund THE SMSF ESSENTIALS GUIDE The ultimate starter guide to setting up, running and effectively using a Self Managed Superannaution Fund DISCLAIMER The purpose of this e-book is to provide information and

More information

Are you ready to become part of Australia s largest superannuation pool?

Are you ready to become part of Australia s largest superannuation pool? Are you ready to become part of Australia s largest superannuation pool? This information is a summary based on Hayes Knight's understanding of the relevant legislation. It is general in nature and may

More information

Understanding gearing Version 5.0

Understanding gearing Version 5.0 Understanding gearing Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to gearing. This document has

More information

A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM. www.jaswealth.com.au. Superannuation 101. Everything you always wanted to know but were too afraid to ask

A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM. www.jaswealth.com.au. Superannuation 101. Everything you always wanted to know but were too afraid to ask A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM www.jaswealth.com.au Superannuation 101 Everything you always wanted to know but were too afraid to ask What is Superannuation? Superannuation 101 Contents What

More information

My SMSF Property Services Guide

My SMSF Property Services Guide My SMSF Property Services Guide This guide is an important document which we recommend you read, when choosing any services provided by My SMSF Property. In it we highlight some important considerations,

More information

Thinking Of Starting Your Own SMSF?

Thinking Of Starting Your Own SMSF? Thinking Of Starting Your Own SMSF? Introduction It s no coincidence that interest in self managed superannuation has skyrocketed since the global financial crisis (GFC). The loss of investor confidence

More information

However, this week s announcement particularly in regards to big business audits includes a growing focus on the following areas:

However, this week s announcement particularly in regards to big business audits includes a growing focus on the following areas: Issue 5, August 2003 Briefly in Tax Taxation Specialists - Business Advisors THIS ISSUE ATO Spotlight is Bigger and Brighter for 2003-04 Areas under the spotlight with the ATO are expanding once again,

More information

Self Managed Super Funds Take charge

Self Managed Super Funds Take charge Self Managed Super Funds Take charge Gain control of your financial future with a Self-Managed Super Fund (SMSF) About Markiewicz & Co. Markiewicz & Co. is one of Australia s leading full service investment

More information

Taking control of your superannuation. Good SMSF Advice helps business owners achieve their goals.

Taking control of your superannuation. Good SMSF Advice helps business owners achieve their goals. Taking control of your superannuation Good SMSF Advice helps business owners achieve their goals. Are you in the right superannuation structure? Many Australians outsource the management of their superannuation

More information

SMSF gearing package. multiport.com.au. Issued 7 July 2014 Multiport Pty Ltd ABN 76 097 695 988 AFS Licence No. 291195

SMSF gearing package. multiport.com.au. Issued 7 July 2014 Multiport Pty Ltd ABN 76 097 695 988 AFS Licence No. 291195 SMSF gearing package multiport.com.au Issued 7 July 2014 Multiport Pty Ltd ABN 76 097 695 988 AFS Licence No. 291195 Contents Multiport s SMSF gearing package 1 An exciting new opportunity 2 How does it

More information

New Ways For High Net Worth Individuals

New Ways For High Net Worth Individuals New Ways For High Net Worth Individuals And Business Owners To Build Wealth Tax Effectively With Introduction A SMSF It may be that the SMSF is the absolute way of the future March 2010 Jeremy Cooper Head

More information

Self Managed Super Fund (SMSF) Limited Recourse Loans

Self Managed Super Fund (SMSF) Limited Recourse Loans Self Managed Super Fund (SMSF) Limited Recourse Loans Memorandum Have you been searching for someone you can trust to assist with arranging both the finance and legal structure that accompanies limited

More information

SMSF Audit Self Managed Super Funds

SMSF Audit Self Managed Super Funds SMSF Audit Checklist SMSF Audit Self Managed Super Funds Fund Name: (per trust deed) Fund ABN: Fund TFN: Year of Audit: The basic format is to have Financial Statements, a Tax Return, supporting documentation

More information

Is your. potential? Right Strategy.

Is your. potential? Right Strategy. Is your SMSF working to its full potential? Right Strategy. Right Time. While managing your own super provides investment flexibility and control, the biggest challenge is ensuring the decisions you make

More information

Understanding Self Managed Superannuation Funds Version 5.0

Understanding Self Managed Superannuation Funds Version 5.0 Understanding Self Managed Superannuation Funds Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to

More information

Self-Managed Super Fund Basics and Buying Property with your SMSF Money

Self-Managed Super Fund Basics and Buying Property with your SMSF Money RETIRE WITH MORE Self-Managed Super Fund Basics and Buying Property with your SMSF Money YOUR GUIDE TO BUYING PROPERTY WITH YOUR SMSF MONEY $$$ Unit 1, 3 Robinson Place Rockingham WA 6168 admin@integratax.com.au

More information

Make sure your SMSF is.

Make sure your SMSF is. Make sure your SMSF is. Super decisions You know first-hand that one of the biggest advantages of managing your own super is that you make the decisions. It s one of the main reasons you have an SMSF or

More information

Borrowing to Buy Property in your Self Managed Super Fund

Borrowing to Buy Property in your Self Managed Super Fund Level 7,34 Charles St Parramatta answ 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegie.com.au Guide Build Protect Manage Wealth Borrowing to Buy Property in your

More information

Contributions. Things you should know about making contributions to your SMSF BROUGHT TO YOU BY

Contributions. Things you should know about making contributions to your SMSF BROUGHT TO YOU BY Contributions Things you should know about making contributions to your SMSF BROUGHT TO YOU BY CONTENTS Non Concessional Contributions: Aged Under 65... 2 Non Concessional Contributions: Aged 65 to 74...

More information

WARNING. Disclaimer - This e-booklet contains general information only

WARNING. Disclaimer - This e-booklet contains general information only WARNING Disclaimer - This e-booklet contains general information only This information has been prepared as a general guideline, and is not intended to be an exhaustive or a complete analysis of the topics

More information

SELF MANAGED SUPER FUNDS SMSF

SELF MANAGED SUPER FUNDS SMSF JAMES MERCHAN BBUS (Banking & Finance), Ad.Dip Fin Planning [m] 0433 480 870 [w] 5976 3704 [e] jmerchan@mccombe.com.au SELF MANAGED SUPER FUNDS SMSF SMSF s are the fastest growing sector in the $1.4trillion

More information

Investing in Property through your Self-Managed

Investing in Property through your Self-Managed smsfinstitute.com.au The SMSF Guide Book Investing in Property through your Self-Managed Benefits & complexities of adding property to your Superannuation investment portfolio! The General Advice The contents

More information

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf.

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf. CLIENT FACT SHEET July 2010 Understanding superannuation and superannuation contributions Superannuation is an investment vehicle designed to assist Australians in saving for their retirement. The Government

More information

SMSF Solutions for Advisers & Accountants.

SMSF Solutions for Advisers & Accountants. SMSF Solutions for Advisers & Accountants. 1 November 2015 www.multiport.com.au Multiport Pty Ltd ABN 76 097 695 988 AFS LICENCE NO: 291195 Contents Taking the hassle out of SMSF administration and compliance

More information

Maximise year end opportunities and minimise risks Self Managed Super Funds

Maximise year end opportunities and minimise risks Self Managed Super Funds Maximise year end opportunities and minimise risks Self Managed Super Funds The end of the financial year will be here before you know it. In this end of financial year update, we have summarised the key

More information

What is Superannuation and how do Self Managed Superannuation Funds Work?

What is Superannuation and how do Self Managed Superannuation Funds Work? What is Superannuation and how do Self Managed Superannuation Funds Work? Superannuation is a long-term arrangement that operates primarily to provide income in retirement. Superannuation involves employers,

More information

Self Managed Super Limited Recourse Borrowing

Self Managed Super Limited Recourse Borrowing Self Managed Super Limited Recourse Borrowing "It's your retirement savings - don't you think it's time you took an active role in how it's invested! " NICHE FINANCE 22F / 105 Scarborough Street, Southport

More information

SELF-MANAGED SUPER FUND LOANS

SELF-MANAGED SUPER FUND LOANS SELF-MANAGED SUPER FUND LOANS PART ONE: Purchasing an existing property or Off-The-Plan apartment using the banks money PART ONE: PURCHASING AN EXISTING PROPERTY OR OFF-THE-PLAN APARTMENT USING THE BANK

More information

Box D Self-managed Superannuation Funds

Box D Self-managed Superannuation Funds Box D Self-managed Superannuation Funds 1 8 6 4 2 Self-managed superannuation funds (SMSFs) are the fastest-growing segment of the Australian superannuation industry. In June 213, SMSFs held around $5

More information

ESTABLISHING AN SMSF STEPS INVOLVED AND ISSUES TO BE CONSIDERED

ESTABLISHING AN SMSF STEPS INVOLVED AND ISSUES TO BE CONSIDERED Individuals face a number of considerations in deciding to establish a Self Managed Superannuation Fund (SMSF). This article considers some of those considerations and outlines some of the steps involved.

More information

Thinking About Self-Managed Super? A Special Report

Thinking About Self-Managed Super? A Special Report Thinking About Self-Managed Super? A Special Report by DBA Accountants Mt Lawley, WA Copyright 2015 Nine Key Issues to Consider 1. What it is Self-Managed Superannuation? 2. Sole Purpose 3. What are the

More information

Self managed superannuation. client guide

Self managed superannuation. client guide Self managed superannuation client guide HOW TO USE THIS GUIDE This guide is to assist clients and advisers in understanding the common questions Cavendish staff may ask in the provision of SMSF administration

More information

7 Reasons Why Property

7 Reasons Why Property 7 Reasons Why Property Investment can t be ignored. Know your options before it s too late. What is in this report? This report is a must read for anyone looking to improve their lifestyle and enjoy greater

More information

Self Managed Super Funds

Self Managed Super Funds a guide to Self Managed Super Funds a guide to Self Managed Super Funds 1 disclaimer This ebook has been prepared by EJM Financial Services in conjunction with AMP Financial Planning Pty Limited, ABN 89

More information

Understanding Superannuation

Understanding Superannuation Understanding Superannuation Client Fact Sheet July 2012 Superannuation is an investment vehicle designed to assist Australians save for retirement. The Federal Government encourages saving through superannuation

More information

Understanding insurance

Understanding insurance Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published

More information

Smart strategies for maximising retirement income

Smart strategies for maximising retirement income Smart strategies for maximising retirement income 2010 Why you need to create a life-long income Australia has one of the highest life expectancies in the world and the average retirement length has increased

More information

SA METROPOLITAN FIRE SERVICE SUPERANNUATION SCHEME

SA METROPOLITAN FIRE SERVICE SUPERANNUATION SCHEME SA METROPOLITAN FIRE SERVICE SUPERANNUATION SCHEME SUPER INFO Spring 2014 Welcome to the Spring 2014 edition of Super Info What s inside: 1 2 6 Australian retirees supported by one of the best pension

More information

SMSF Financial Needs Analyser

SMSF Financial Needs Analyser SMSF Financial Needs Analyser To have a complete Statement of Advice prepared for you, you need to provide full details of your financial position to your Count adviser. If you require only restricted

More information

Understanding retirement income Version 5.0

Understanding retirement income Version 5.0 Understanding retirement income Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to understanding retirement.

More information

SELF MANAGED SUPERANNUATION

SELF MANAGED SUPERANNUATION SELF MANAGED SUPERANNUATION Position Yourself INFORMATION PACK INFORMATION PACK SELF MANAGED SUPERANNUATION FUNDS SMSF INFORMATION SHEET MAKING THE MOST OF YOUR SUPERANNUATION Self Managed Superannuation

More information

Major Reasons for a Self Managed Superannuation Fund ( SMSF ) Trustee(s) Australian Taxation Office ( ATO )

Major Reasons for a Self Managed Superannuation Fund ( SMSF ) Trustee(s) Australian Taxation Office ( ATO ) Major Reasons for a Self Managed Superannuation Fund ( SMSF ) # Members control an SMSF and (subject to sole purpose test and other restrictions of Australian law) can choose investments (including own

More information

Understanding insurance Version 5.0

Understanding insurance Version 5.0 Understanding insurance Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to insurance. This document

More information

3 ways to maximise every dollar in your SMSF.

3 ways to maximise every dollar in your SMSF. 3 ways to maximise every dollar in your SMSF. We knowhow. Contents. Your super, your way. Once you ve established a Self Managed Super Fund, we have a three-piece DIY Super Solution to help you manage

More information

Tax deductible superannuation contributions

Tax deductible superannuation contributions Tax deductible superannuation contributions TB 35 TECHNICAL SERVICES ISSUED ON 29 OCTOBER 2014 ADVISER USE ONLY VERSION 1.1 Summary Employers and certain individuals can claim a tax deduction for contributions

More information

BORROWING BY SELF MANAGED SUPERANNUATION FUNDS (SMSF)

BORROWING BY SELF MANAGED SUPERANNUATION FUNDS (SMSF) DATE: 4 April 2014 BORROWING BY SELF MANAGED SUPERANNUATION FUNDS (SMSF) Purpose The purpose of this short paper is to briefly explain the opportunity that currently exists for self managed superannuation

More information

Understanding Insurance

Understanding Insurance Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to insurance. Important

More information

THE SUPER BRIEF. UPDATE!!!! ATO knocks back use of SMSF s to fund Buy/ Sell Agreement Life Insurance NEWSLETTER. page 1. ISSUE - October 2014

THE SUPER BRIEF. UPDATE!!!! ATO knocks back use of SMSF s to fund Buy/ Sell Agreement Life Insurance NEWSLETTER. page 1. ISSUE - October 2014 ISSUE - October 2014 THE SUPER BRIEF UPDATE!!!! ATO knocks back use of SMSF s to fund Buy/ Sell Agreement Life Insurance Clients often use an SMSF to hold life insurance when setting up a Buy Sell Agreement

More information

What Is A "Self-Managed Superannuation Fund"? Introduction. What is a SMSF?

What Is A Self-Managed Superannuation Fund? Introduction. What is a SMSF? What Is A "Self-Managed Superannuation Fund"? Introduction This memorandum explains what self-managed superannuation funds are, how they are regulated, what laws apply, who sets them up and what their

More information

FACT SHEET Is a Self-Managed Superannuation Fund the right option for me?

FACT SHEET Is a Self-Managed Superannuation Fund the right option for me? FACT SHEET Is a Self-Managed Superannuation Fund the right option for me? Prepared by Brett Griffiths, Director Superannuation Consulting e bgriffiths@vincents.com.au IS A SELF MANAGED SUPERANNUATION FUND

More information

SuperAstute. Self Managed Super. Administration Services Guide March 2012. Distributed by

SuperAstute. Self Managed Super. Administration Services Guide March 2012. Distributed by SuperAstute Self Managed Super Administration Services Guide March 2012 Distributed by 2 Bendigo Wealth Superannuation This page has been intentionally left blank Contents Page About Self Managed Superannuation

More information

Smart strategies for your super

Smart strategies for your super Smart strategies for your super 2010 Make your super count Superannuation is still one of the best ways to accumulate wealth and save for your retirement. The main reason, of course, is the favourable

More information

Self Managed Superannuation Fund Borrowing - Q s and A s

Self Managed Superannuation Fund Borrowing - Q s and A s Self Managed Superannuation Fund Borrowing - Q s and A s Self Managed Superannuation Fund (SMSF) Borrowing Q s and A s Borrowing through your SMSF is not as difficult a process as you may think. As a market

More information

Self Managed Super Fund (SMSF) Limited Recourse Loans

Self Managed Super Fund (SMSF) Limited Recourse Loans Self Managed Super Fund (SMSF) Limited Recourse Loans Memorandum Ever since the Superannuation Industry (Supervision) Act 1993 (SIS Act) was amended in late 2007, SMSF Lending has been arranging Super

More information

Why Managed Funds Are One of Your Best Investment Options

Why Managed Funds Are One of Your Best Investment Options Why Managed Funds Are One of Your Best Investment Options What Is A Managed Investment Fund and What are its Advantages? Managed funds are collective investments where a number of investors pool their

More information

SMSF Audit Self Managed Super Funds

SMSF Audit Self Managed Super Funds SMSF Audit Self Managed Super Funds Control Why set up a Self Managed Super Fund (SMSF)? SMSF assets are totally under the control of the Trustees. The Trustees are responsible for taking all decisions

More information

Building and protecting your wealth the tax effective way

Building and protecting your wealth the tax effective way Building and protecting your wealth the tax effective way Strategies guide 2014/2015 The lead up to End of Financial Year (EOFY) provides a good opportunity to review your wealth creation plans. At this

More information

intelligent complete financial solutions

intelligent complete financial solutions intelligent complete financial solutions A SINGLE STORY, A COMMON GOAL Partners Mortgage & Lending Services (PML), a member of Partners Wealth Group, is one of Australia s leading mortgage and business

More information

Understanding Retirement Planning

Understanding Retirement Planning Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to retirement planning.

More information

A guide to our relationship with you and others

A guide to our relationship with you and others PO Box 893 St Ives NSW 2075 Suite 2, 41-45 Pacific Hwy Waitara NSW 2077 Ph: 02 9487 8200 Fax: 02 9487 8201 Email: yourfinancialcoach@lifestrategies.net.au www.lifestrategies.net.au WHO IS LIFE STRATEGIES

More information

n Print clearly, using a BLACK pen only. n Print X in ALL applicable boxes.

n Print clearly, using a BLACK pen only. n Print X in ALL applicable boxes. Self-managed superannuation fund annual return 2011 Who should complete this annual return? Only self-managed superannuation funds (SMSFs) can complete this annual return All other funds must complete

More information

Thinking about self-managed super

Thinking about self-managed super Introduction for people considering an SMSF Thinking about self-managed super Steps to work out if managing your own super is right for you NAT 72579-03.2013 NAT 71454 03.2013 NAT 71923-03.2013 COVER ICON

More information

Smart End of Financial Year Strategies

Smart End of Financial Year Strategies Level 7,34 Charles St Parramatta Parramatt NSW 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegie.com.au Build Guide Protect Manage Wealth Smart End of Financial

More information

End of financial year planning tips May 2014

End of financial year planning tips May 2014 End of financial year planning tips May 2014 With the end of the financial year fast approaching, it is a good time to review financial planning strategies with a view to optimising your outcomes. This

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

An Introduction to Superannuation

An Introduction to Superannuation An Introduction to Superannuation General Advice Disclaimer Lasseter has prepared this presentation for general information purposes only and does not constitute personal advice. You should not act solely

More information

AMP Eligible Rollover Fund

AMP Eligible Rollover Fund AMP Eligible Rollover Fund Fact sheet Issued 30 June 2014 Issued by AMP Superannuation Limited ABN 31 008 414 104, AFSL No. 233060, the Trustee of AMP Eligible Rollover Fund ABN 32 931 224 407. Registered

More information

Changes to insurance provided by SMSFs. terminal medical condition. ATO approves courses for education directions

Changes to insurance provided by SMSFs. terminal medical condition. ATO approves courses for education directions Specialists in Self-Managed Superannuation Funds (02) 4225 7779 solutions@bwaccounting.net.au www.bwaccounting.net.au Keeping you informed In this issue: ATO SMSF Updates Trusteeship Individual or Company?

More information

May Newsletter #1. Your superannuation checklist. Getting Ready for Tax Time. Meet Bridget Kelly

May Newsletter #1. Your superannuation checklist. Getting Ready for Tax Time. Meet Bridget Kelly May Newsletter #1 Getting Ready for Tax Time Tax time is fast approaching! To help you with your planning, we are sending out checklists about your superannuation, individual and business tax affairs,

More information

A Guide to. Small Self Administered Pension Schemes (SSAS)

A Guide to. Small Self Administered Pension Schemes (SSAS) A Guide to Small Self Administered Pension Schemes (SSAS) Prepared by: John Hebblethwaite APFS CFP cm MIoD FRSA Certified Chartered Financial Planner Managing Director April 2014 Contents Introduction...

More information

Smart strategies for maximising retirement income 2012/13

Smart strategies for maximising retirement income 2012/13 Smart strategies for maximising retirement income 2012/13 Why you need to create a life long income Australia has one of the highest life expectancies in the world and the average retirement length has

More information

ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724

ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014 Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 CONTENTS Introduction... 1 Recent developments in superannuation...

More information

HOW TO BUY PROPERTY WITHIN YOUR SELF-MANAGED SUPERANNUATION FUND

HOW TO BUY PROPERTY WITHIN YOUR SELF-MANAGED SUPERANNUATION FUND HOW TO BUY PROPERTY WITHIN YOUR SELF-MANAGED SUPERANNUATION FUND COPYRIGHT All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or

More information

Self Managed Super Funds

Self Managed Super Funds Self Managed Super Funds www.powersmsf.com.au BRISBANE 10/ 8 Metroplex Ave Murarrie QLD 4172 PO Box 518 Cannon Hill QLD 4170 P 07 3906 2888 F 07 3906 2889 BILOELA 54 Callide Street Biloela QLD 4715 PO

More information

COMPLETE SMSF LEGAL SERVICES

COMPLETE SMSF LEGAL SERVICES Murfett Legal provides the complete suite of advice and documentation for Self Managed Superannuation Funds. All documents are prepared by Murfett Legal s lawyers and are not simply generic internet-based

More information

Death of a Member in an SMSF. Peter Johnson The SMSF Expert TM CST Corporate Solutions Pty Ltd

Death of a Member in an SMSF. Peter Johnson The SMSF Expert TM CST Corporate Solutions Pty Ltd Death of a Member in an SMSF Peter Johnson The SMSF Expert TM CST Corporate Solutions Pty Ltd Outcomes? Death Benefit Nominations Insurance Inside of Super Changing Trustee s etc after death Definition

More information

SMSF Audit Checklist

SMSF Audit Checklist 12 Jan 2013 SMSF Audit Checklist XXXXXX Superannuation Fund Name of fund Year of the audit Permanent Documents that should be on file: 1 Minutes 2 Trustee Declaration from ATO 3 Trust Deed 4 Consent to

More information

A GUIDE TO RETIREMENT ANNUITY TRUST SCHEMES ( RATS ) IN GUERNSEY

A GUIDE TO RETIREMENT ANNUITY TRUST SCHEMES ( RATS ) IN GUERNSEY A GUIDE TO RETIREMENT ANNUITY TRUST SCHEMES ( RATS ) IN GUERNSEY TABLE OF CONTENTS INTRODUCTION... 3 WHAT IS A RETIREMENT ANNUITY TRUST SCHEME?... 3 THE TRUSTEES... 4 APPROVAL... 4 TRANSFERS FROM OTHER

More information

The sole purpose test

The sole purpose test In this issue: SMSFs and insurance : the new landscape where property and borrowing are involved In recent years 1, we have seen substantial growth in the number of SMSF trustees entering into limited

More information

MLC Wrap. Investments. Service Guide. MLC Wrap. Preparation date: 17 January 2011

MLC Wrap. Investments. Service Guide. MLC Wrap. Preparation date: 17 January 2011 MLC Wrap MLC Wrap Investments Service Guide Preparation date: 17 January 2011 Issued by: Navigator Australia Limited (NAL) ABN 45 006 302 987 AFSL 236466 MLC Wrap MLC Wrap Investments Supplementary Service

More information

BT Lifetime. Personal Super. Contents. 1. About BT Lifetime Personal Super 2 2. How super works 2 3.

BT Lifetime. Personal Super. Contents. 1. About BT Lifetime Personal Super 2 2. How super works 2 3. Contents BT Lifetime Personal Super Product Disclosure Statement (PDS) Dated 1 July 2014 1. About BT Lifetime Personal Super 2 2. How super works 2 3. Benefits of investing with BT Lifetime Personal Super

More information

SMSF Property Loans Online Product Training

SMSF Property Loans Online Product Training SMSF Property Loans Online Product Training Contents 01 SMSFs and borrowing 02 Responsibilities and licensing 03 Product overview and features 04 Fees 05 Credit policy 06 Case study 07 Next steps 01 SMSFS

More information

borrow Want to in your SMSF?

borrow Want to in your SMSF? borrow Want to to buy property in your SMSF? A Self Managed Super Fund (SMSF) gives you investment flexibility. Some typical investment options for SMSFs include term deposits, direct shares, and managed

More information

Personal Income Tax Return - Year End Questionnaire 2015

Personal Income Tax Return - Year End Questionnaire 2015 Personal Income Tax Return - Year End Questionnaire 2015 To assist us in preparing your income tax return, please use this questionnaire as a checklist when you compile your information. With respect to

More information

Reverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good.

Reverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good. Reverse Mortgage Financial freedom to do the things you ve always wanted That s what we re here for. Here for good. Contents 2 The freedom of a Reverse Mortgage 3 Product overview 4 About Reverse Mortgages

More information

Understanding business insurance

Understanding business insurance Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published

More information

SMSF Contributions Getting Assets into your SMSF

SMSF Contributions Getting Assets into your SMSF Getting Assets into your SMSF Agenda What is a contribution? When is a contribution made? In-Specie transfer of assets Contribution caps Contribution strategies How can we help? What is a Contribution?

More information

End of Year Income and Tax Planning Individuals - June 2013

End of Year Income and Tax Planning Individuals - June 2013 The tips below will assist you in your end of year income and tax planning strategies. These tips are not meant to be exhaustive nor applicable to each and every individual taxpayer. Further you should

More information

Super Accelerator. Supplementary Product Disclosure Statement. 2 April 2015. Issuer/trustee details: netwealth Investments Limited

Super Accelerator. Supplementary Product Disclosure Statement. 2 April 2015. Issuer/trustee details: netwealth Investments Limited Super Accelerator Supplementary Product Disclosure Statement 2 April 2015 Issuer/trustee details: netwealth Investments Limited Level 8/52 Collins Street MELBOURNE VIC 3000 ABN 85 090 569 109 AFSL 230975

More information

THE TRUTH ABOUT SMSFs

THE TRUTH ABOUT SMSFs THE TRUTH Doing it yourself with a Self Managed Super Fund ABOUT SMSFs by Nick Bedding 1 Doing it yourself with a Self Managed Super Fund Table of contents Introduction Chapter One What s it all about?

More information

IFSA Guidance Note No. 21.00

IFSA Guidance Note No. 21.00 IFSA Guidance Note No. 21.00 Calculators Best Practice Guidance April 2007 Main features of this Guidance Note are: Highlight the importance of calculators in assisting users to make informed financial

More information

Getting the best out of your superannuation savings

Getting the best out of your superannuation savings Booklet 1 Getting the best out of your superannuation savings MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Saving through super 08 How a super fund works 09 How

More information

SRF 330.0 must be completed for each RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF).

SRF 330.0 must be completed for each RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF). Reporting Form SRF 330.0 Statement of Financial Performance Instructions These instructions assist completion of Reporting Form SRF 330.0 Statement of Financial Performance (SRF 330.0). SRF 330.0 collects

More information