Self-managed super funds (SMSFs) are a popular retirement savings structure in Australia that allows individuals to manage their superannuation assets directly. An SMSF can have up to six members, but it is typically managed by the fund members themselves or with the assistance of professionals.

Here’s a brief overview of key features and considerations for SMSFs:

1. Control: SMSFs offer complete control over investment decisions. The trustee(s) can choose the assets in which the fund invests, such as property, shares, or other financial instruments, according to their retirement goals.
2. Responsibility: While SMSFs provide control, they also come with responsibilities. Trustees must ensure that the fund complies with the relevant superannuation and tax laws. They are required to keep proper records, lodge annual returns, and undergo an independent audit.
3. Investment Flexibility: SMSFs offer more flexibility in investment options, including direct property ownership, investment in collectibles, and more, which is not typically available through other superannuation structures.
4. Costs: While SMSFs can be cost-effective for larger balances, they may involve higher fees for smaller balances. Costs include accounting, auditing, legal advice, and administration fees.
5. Compliance and Legal Requirements: An SMSF must comply with regulations set out by the Australian Taxation Office (ATO) and meet specific requirements to maintain concessional tax benefits, including maintaining a trust deed, proper governance, and a structured investment strategy.
6. Tax Benefits: SMSFs offer significant tax advantages, including the potential for tax-free earnings in retirement (when over 60 years old), concessional contributions, and capital gains tax discounts for assets held longer than 12 months.
7. Estate Planning: SMSFs provide an opportunity to have more control over how assets are passed on to beneficiaries. Trustees can choose to include a binding death benefit nomination, ensuring superannuation assets are distributed as intended.

If you’re interested in learning more or considering a Self Managed Super Fund (SMSF), professional advice is important to ensure you meet all legal requirements and optimize your fund’s performance.

For further detailed guidance, you might want to refer to the specific service page on SMSFs at SFA Advisory.