Superannuation is one of the best long term saving arrangements, operating to provide income in retirement. It remains one of the most tax-effective means of creating wealth as tax concessions apply to superannuation contributions, to earnings with the fund and to the ultimate benefits.
There are many types of superannuation funds in Australia, however they all sit under the one set of tax rules and legislation. There are retail funds, employer funds, industry funds, wholesale funds and lastly Self Managed Super Funds. We are able to advise on traditional superannuation funds and also Self Managed Super Funds. With traditional funds we have access to leading wholesale funds whereby we are able to place super funds into specific investments and investment classes.
Then there are Self-Managed Super Funds. The difference between a Self-Managed Superannuation Fund (often described as ‘do-it-yourself funds’) and traditional superannuation funds is that they allow you to have total control of your money.
A fund enables each member to be directly involved in the decision-making process and to look after their own interests. It also provides flexibility for retirement planning, estate planning and insurance strategies.
SMSFs can be onerous with the duties that must be conducted. Time and expertise are required to keep up-to-date with legislative changes as well as undertaking the day-to-day administration and compliance tasks.