What is a Self Managed Super Fund?
A Self Managed Super Fund (SMSF) is a form of superannuation
fund that is controlled by the members, giving greater
control over their retirement savings than other types of
superannuation funds such as industry or retail super funds.
This includes wider investment choice and greater control over
investments and flexibility in the payment of retirement benefits,
such as pensions and annuities, directly from the fund.
SMSFs must be established for the sole purpose of providing
benefits to fund members on retirement. Or, if the member
dies before retirement, a benefit to that member’s dependants.
This is referred to as the Sole Purpose Test.
Requirements for establishing an SMSF
To establish a SMSF, the fund must meet the following conditions:
- Have fewer than 5 members
- Each individual trustee of the fund must also be a member
of the fund
- Each member of the fund must be a trustee of the fund
- No fund member can be an employee of another fund
member, unless they are related, and
- No trustee of the fund can receive remuneration for their
services as a trustee.
An SMSF can alternatively have a company trustee (known as a
corporate trustee). Each director of the trustee company must
be a fund member, and each fund member must be a director
of the company.
There are some exceptions involving single member funds and
About Super Funds
Of the $1.23 trillion invested in super at 30 June 2010, $390.8
billion was in self managed super funds (SMSFs). That's 31.8%
of all superannuation funds, with SMSFs now representing the
largest slice of the super industry.
For many Australians, SMSFs offer 4 major advantages:
- More control over investments.
- Greater investment flexibility.
- Generally lower fees than industry and retail funds.
- On average, better performance than industry and retail funds.
More control and greater flexibility over
SMSF members can choose where their retirement savings
are invested, with options including listed shares, bonds, listed
investment companies (LICs), managed funds, ETFs and direct
This flexibility in investment options allows SMSF members to
actively manage their investments. With a hands-on investment
approach, SMSF members can quickly adjust their portfolios as
Lower fees and better performance
A Commonwealth Government report titled A Statistical
Summary of Self-Managed Superannuation Funds (Dec
2009), based on ATO and APRA data, found SMSF members
generally pay lower fees and that, on average, SMSF investments
performed better than all other super funds over 2006, 2007
Benefits of our SMSF service
Kelly+Partners provides one of the most comprehensive
SMSF administration and financial advisory services available.
We can provide you with:
- Market leading services to meet the regulatory requirements
of accounting, taxation and audit
- Professional compliance advice and assistance.
- Superannuation Taxation advice including access to effective
- Fee for service quality advice on financial strategies, estate
planning and wealth protection
- Competitive fees, and
- Outstanding customer service.
Administration of your Super Fund
We provide the following sevices for your self managed super
fund to ensure you meet your compliance requirements of your
- Preparing and lodging your SMSF’s annual income tax and
- Preparing your SMSF’s annual financial statements
- Preparing all necessary minutes of meetings
- An annual audit of your SMSF
- Preparing all paperwork required to start and administer
pensions within your SMSF
Private Business Owner focus
As the leading advisors to Private Business
Owners, Kelly+Partners is uniquely positioned
to help dealer owners get their businesses and
their personal wealth organised in a coordinated
fashion. This owner-focused service model means
that the business is viewed as the means to
building wealth for the owner and not an end in
- A set protection
- Tax management
- Retirement planning
- Wealth management
Why establish an SMSF?
Some advantages of an SMSF include:
- Being able to invest, so that income and capital gains are
taxed at the lower superannuation tax rates. These rates can
be as low as 0% and no higher than 15%.
- Being able to invest in a wide range of assets, including
direct property, which are not normally available in traditional
- Being able to co-ordinate your superannuation investment
strategy with your non-superannuation assets and business.
- Being able to structure income streams or pensions in a very
tailored way, that suits you and your family.
- Being able to structure your estate planning to ensure certainty
about what happens to your assets when you pass away.
An SMSF offers many advantages for estate planning over
other ownership structures and over traditional super funds.
- Being in control of all key decisions, including investment
decisions, but still having the ability to take advice from
specialists. You will need specialist accounting, taxation,
investment, estate planning and strategic advice for your fund.
- A n SMSF can give you the ability to transfer personally
owned shares and some property into the fund
- A n SMSF can be used to buy business premises for use in
Benefits of SMSFs
Self managed super funds have many advantages over other
types of super. Depending on your situation, these advantages
- More control over your investments
- Greater investment choice
- Flexibility to implement tax planning strategies
- The ability to transfer personal assets into your SMSF, and
- Pooling family assets to lower overall fees and to implement
financial strategies involving the transfer of benefits between
How an SMSF could benefit you
Depending on your individual situation, the advantages of an
SMSF may include:
- Tailored tax management on investment income and
- Greater flexibility in investment choices and asset selection
- Control over your total investment portfolio, with the ability
to take account of the risk profile of all your assets, including
those held outside superannuation
- The ability to pool your resources with up to 4 fund members
with similar financial objectives, such as family members
- Maximum flexibility in establishing and managing pensions,
including account based, transition to retirement and pensions
- Greater flexibility for accessing Centrelink benefits such as the
- Investing in direct property
- The ability to transfer personally owned listed shares,
business real property and managed funds directly into your
superannuation fund, and
- The ability to own business real property in your
superannuation fund, to assist your business cashflow.
Setting up and administering your SMSF
With our SMSF service, you’ll benefit from the significant
advantages of establishing a self managed super fund without
having to worry about ongoing administration and compliance.
Our SMSF services include:
- Setting up your SMSF – We can help you with all the
paperwork required to establish a self managed super fund
and assistance in administering your SMSF.
- Investing in your SMSF – Our expert Investment Advisors
can help you develop your fund’s investment strategy
and portfolio and provide ongoing investment advice and
Setting up your SMSF
Kelly+Partners Chartered Accountants can help you establish
We can help you set up a self managed super fund that is ready
to use by:
- Preparing your SMSF's trust deed
- Completing and lodging your ATO application forms
- Providing trustee declarations
- Establishing a cash management account in your SMSF's
- Completing binding death nomination forms that provide
guidance on how members want their assets distributed.
We also provide an investment strategy for your SMSF template
to assist you in complying with all current legislation.