A SMSF is a trust run by members, regulated by the Australian Securities and Investments Commission (ASIC) that provides retirement benefits to the beneficiaries of the trust. An SMSF can provide a number of benefits which can help you achieve your retirement objectives within its structure. Some of these benefits include:
- Establishing a SMSF will give you access to a greater number of investment options and thus allow you greater control of your money. Options for assets you could invest in include term deposits, direct shares, international securities, foreign exchange trading, bullion and, where appropriate, commercial property
- Having all your superannuation consolidated into one account is extremely important. Establishing a SMSF provides the ability for husbands and wives and even siblings to consolidate their super under the one investment structure.
- A SMSF structure provides for up to a maximum of 4 members within it. Having multiple members in the fund, can increase the amount in the SMSF available for investing as well as reduce the total overall fees payable to administer the fund.
- The applicable tax rates for compliant superannuation funds range from 0-15% rather than your marginal tax rates.