The benefits of a Self-Managed Super Fund

An SMSF (self-managed super fund) gives you greater control over where your super is invested and can have several financial advantages over belonging to a larger super fund. As well as accumulating wealth for their members’ retirement, a SMSF can provide members with protection in the form of insurance.


What types of insurance are available through a SMSF?

As well as life insurance and total permanent disability (TPD) insurance, an SMSF can provide its members with income protection (IP) insurance, which pays up to 75% of their regular income if they are unable to work temporarily due to illness or injury. Such protection is particularly important in the case of self-managed super funds, which are often run by self-employed people and small business owners, who would be particularly disadvantaged if they were unable to work.

Read more on – Finder.

Why Start an SMSF?

Trustees start self-managed superannuation funds (SMSFs) for a variety of reasons. Most do it for increased control, but there are some tax benefits that members can accrue if they get the right advice from accountants who understand the issues.

Flexibility for SMSFs comes in all shapes and sizes. It isn’t limited to investment choice, but it also allows trustees to take advantage of the smaller size of their fund and the nimbleness that goes with it. Here are some tax strategies that can really boost the bottom line of an SMSF.

Capital gains tax benefits

If you’re a member of a large public-offer fund, the balance you see on your superannuation statement every half year or quarter isn’t necessarily the exact amount you have in your fund. If you’ve had your funds with a superannuation fund for a decent period of time, the chances are that your investments will have appreciated in value and a decent percentage of your total balance will be capital gains from your investments…and more info on In the Black.


Tax Control

A major benefit of SMSFs that is slowly becoming more widely known is the control and flexibility that trustees have over the tax position of the fund. Through either strategic investment planning (such as maximising franking credits) or internal structuring, tax can be significantly reduced (and in some cases, totally eliminated with refunds paid from the ATO), particularly for those in retirement. There is also great flexibility in  terms of dealing with the tax liabilities of the fund, as the fund only does one tax return even though there can be up to 4 different members in the fund. There is even a strategy that exists whereby other current and future members can benefit from huge tax deductions for future years on the death of a member. Visit – to know more.

It can be tax-effective

As a preferred method for retirement savings, it helps save a lot on the taxes you pay. The earning within your superannuation funds are taxed at only 15%. The tax benefit is nearly 50% which is less than half the marginal tax rate paid by the majority of workers.


Business benefits

With the SMSF, you cannot purchase a residential property to rent back to yourself, but you can purchase a commercial property to lease back to your own business. It provides you to pay a commercial rate of rent.

You get better purchasing power

Combining your capital with the other members of your SMSF gives you the purchasing power you need to invest.

Liquidity at retirement

We all know that the SMSF property proves to be a great source to ensure the better retirement.

Direct control

With the Self-Managed Super Fund property, you have direct control of your investments and the diversification in your portfolios…for more benefits, visit – InvestmentRealEstate.

These were the benefits of an SMSF. Hire the services of an SMSF to know more strategies linked to a successful SMSF and make great investments with SMSF software given by SMSF Professionals

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