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Why self-managed super is the next big thing

Have you ever considered a self-managed super fund? Over the past five years, the total level of assets in the self-managed super fund sector has increased by 32 per cent. This is partially due to the investment returns of assets as well as SMSF trustees making contributions. But, it is an attractive option for those who are committed to paving their own path to super success. 

Benefits of a self-managed super fund

1. Control and flexibility

One of the key benefits of a self-managed super fund is having control over investment decisions. With a self-managed super fund, you can create a tailored investment strategy that aligns with your specific financial goals, risk tolerance, and values. This control extends to choosing specific assets, such as property or direct shares, which may not be available through other superannuation options. With the right investment strategies in place, you have the potential to increase your returns through this control and flexibility.


2. Cost savings

As well as control over your investments, you may also benefit from cost savings compared to traditional retail or industry super funds. With a self-managed super fund, you have the ability to pool your superannuation savings with other family members, reducing overall administration and management fees. 


3. Estate planning opportunities

Self-managed super funds also offer unique estate planning advantages, allowing for the effective transfer of wealth to beneficiaries. Through careful planning, you can structure your self-managed super fund to provide for your loved ones in a tax-effective manner after your passing.

4. Tax Savings

Self-managed super funds are taxed at a flat rate of 15% of earnings during your working life (accumulation phase), which is much lower than the top individual tax rate of 49%.  The best news is that once you retire and move into the pension phase your self-managed super fund is taxed at 0% of earnings, which includes any capital gains that you may make from selling a property or share portfolio held by your fund.  That’s right, once you move into the pension phase, your self-managed super fund will pay no tax whatsoever, that has to be one of the best advantages of having a self-managed super fund.

So what’s the catch? 

Sounds pretty good right? Self-managed super funds are a great way to gain control over your investments, save costs and create tailored strategies for your unique financial circumstances. However, running a self-managed super fund requires time, knowledge, and expertise so you need to be committed to making it a priority.

As a trustee, you are responsible for administrative tasks, compliance with superannuation regulations, and record keeping. You will also need to stay up to date with changes to superannuation laws, reporting obligations, and compliance standards. Above all else, you will have the responsibility of making informed investment decisions to ensure that your self-managed super fund is working for you – not against you.  

Making it easy for you

At APS Tax we can take care of your administration, tax and accounting.  We are passionate about assisting you to comply with your obligations and responsibilities so that you can spend more of your time doing the things that you love.

So, if you are interested in the world of self-managed super funds, we recommend working with an SMSF specialist who can support you in making the most of the benefits. If you have any questions along the way, feel free to reach out to the team at APS Tax & Accounting.

Learn more about managing and growing a Self-Managed Super Fund with APS.

Written by Richard Ferraro, Chief Financial Officer & Head of APS Tax.

Richard is a graduate of the Australian Institute of Company Directors (GAICD) and Fellow Certified Practising Accountant (FCPA) with 3 decades of experience in Financial Accounting, Tax Compliance and Advisory. Prior to the 11 years currently working at APS, Richard was a partner in a top 100 accounting firm, and a Taxation Manager for large corporations such as Nissan Australia, Bendigo and Adelaide Bank, NEC Australia and Australia Post. 

Richard supports his clients across a wide range of services including tax compliance and advisory services to clients who are Companies, Trusts, Partnerships, Self Managed Super Funds, When Richard isn’t working he enjoys spending time with family and friends, watching the mighty Magpies, and anything to do with cars from F1 to supercars and collectables.