Having a Self Managed Superannuation Fund
Self Managed Superannuation Funds (SMSF) have become very popular in recent years and it has become the fastest growing sector of the superannuation marketplace. It’s a popular notion isn’t it – running your own superannuation fund. But it is not all beer and skittles.
Increasing numbers of SMSF trustees are running foul of the regulator, the Australian Taxation Office (ATO), for not complying with the regulations. Just because it is your money does not mean that you can do what you like. There are rules.
These rules cover the types of investments you have in the fund, how the investments are managed and reporting obligations. For example, generally, you cannot buy an investment that you will use for your own benefit (a property or artwork) nor can you take a loan from the fund or lend money to someone close to you even though they may pay interest.
SMSF can be a great opportunity for someone to build their wealth in a tax effective manner, but they can also be a burden for those who do not understand their obligations and responsibilities.
The ATO has some very useful publications on their website http://www.ato.gov.au/smsf/pathway.asp?pc=001/135/003&mfp=001/135&mnu=41614#001_135_003 that will assist you if you are thinking that this might be an option for you.
POSTED: 21-Nov-2008
July 7th, 2009 at 9:30 am
I have been looking looking around for this kind of information. Will you post some more in future? I’ll be grateful if you will.