Self Managed Super Funds (SMSFs)
Broadly speaking a SMSF is a superannuation fund that you establish and manage for yourself. The fund can have no more than four members with the activities of this fund controlled by all the members who are appointed as trustees either as indviduals or as directors of a single corporate trustee.
This superannuation structure provides members with control over:
- how the fund in operated,
- what investments are permitted to be invested in,
- what contributions may be accepted and what benefits are payable, and
- what costs are incurred
As a trustee of the fund, the above options provide you with greater flexibility than otherwise available through retail superannuation funds. This is no more evident than with the ability to acquire certain property investments within your SMSF and in some cases, even borrow money for the purpose of buying the property.
In establishing a SMSF, the fund must meet a number of requirements imposed by super legislation. These include (but is not limited to):
- the Sole Purpose Test;
- Investment Strategy
To assist with the ongoing operation of the fund, the administration may be outsourced to a third party provider, however ultimately you remain responsible for the operation of the fund.
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