Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
5 Reasons why Self Managed Super Funds (SMSF) are so popular.
Over 1.1 million Australians now use an SMSF to manage their retirement savings. The 2020 SMSF Association member experience survey shed some light as to why the SMSF sector has been such an Australian success story. The top 5 reasons why Australians are choosing SMSF’s as their preferred retirement vehicle are:
- Control – SMSF’s allow Australians to take control of their financial future and is the leading motivation for the establishment on a SMSF.
- Choice – they provide the greatest flexibility of any superannuation vehicle with respect to investment options and can invest in shares, fixed interest, Exchange Traded Funds (ETF) and managed funds. Other popular options include direct property (commercial and residential) as well as commodities and unlisted companies.
- Dissatisfaction – with existing retail or industry super funds.
- Tax planning – they provide greater flexibility in terms of managing tax liabilities. In particular they provide the potential to eliminate capital gains tax entirely by deferring the sale of assets until the SMSF transitions from the taxable accumulation phase to the tax-free pension phase.
- Estate planning – SMSF’s provide additional flexibility and certainty around superannuation death benefits being paid to your beneficiaries in the most protected and tax effective manner.
“When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact” – Warren Buffett.