Self Managed Superannuation Funds

A DIY / Self Managed Super fund (or SMSF) is a superannuation fund where you and the other members (if any) are also the trustees of the fund. Trustees of superannuation funds have total control over the Fund and are ultimately responsible for everything that happens within the fund including the investment of Funds held. This "control" aspect is probably the most common reason for members setting up their own fund, however with this control also comes responsibility.

Self Managed Superannuation Funds (SMSF) are also a popular alternative to traditional super for a number of other reasons:

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Greater control over your money
You choose where to invest and when to invest
Asset Protection: The Asset protection afforded in a SMSF is crucial in a world where litigation
and bankruptcy has become commonplace. In either of these events, your benefits are
protected, even if you withdraw some of this to live on. Note that this is the same with
commercial super funds.
Significant tax benefits
Security and a peace of mind knowing where and how your money is invested;
Provide the opportunity to reduce income tax investment income and capital gains;
Increased flexibility of investment choices and the asset selection;
Control over your total investment portfolio, with the ability to take account of the risk profile of all
your assets
Allow between 1- 4 members in the fund and allow the pooling of resources of others with
similar financial objectives (for example, a family unit);
Maximum flexibility in relation to the use of pension income streams such as Account Based Pensions inclusive of Transition to Retirement Income Streams;
Increase flexibility to use the advantages superannuation offers for those people trying to access Centrelink benefits such as the age pension;
You are able to transfer personally owned shares and other listed securities directly into superannuation; It also gives you the ability to own your business' real property (but not operating assets) in the superannuation fund, assisting funding and cashflow problems for many businesses.
The opportunity to borrow or gear an investment, via limited recourse borrowing arrangements, provided the asset is allowed under the rules of the SIS Act
The cost of running a SMSF can be significantly lower than that of an alternative retail, industry of other commercial super fund depending on the level of funds held by the SMSF

For a more detailed description of Self Managed Superannuation Funds, their role, Types of Investment, Administration requirements and how O'Bryan & O'Donnell can assist read our ebrochure