Self-Managed Super Funds: 5 Most Common SMSF Questions Answered

1. What is a self-managed super fund?

A self-managed super fund is also known as a DIY super, so as you might expect, it’s a private super fund that you’re in control of. They are set up to provide benefits in retirement to the members of the fund, who are also trustees. The trustees of the fund are responsible for managing the assets of the SMSF as well as making sure it is compliant with the latest legislation and tax regulations. Because you’re managing your own super, you need to make sure all of the correct documentation and tax information is completed before any deadlines and that you’re up to date with the current policy.

2. Who can be a trustee of an SMSF?

In order to become a trustee of an SMSF, you need to consent to and sign a trustee declaration. All of the members of an SMSF need to be trustees too and there can be up to four per fund. You can’t become a trustee if you have ever been registered bankrupt, have previously been disqualified as an SMSF trustee or have an employer/employee relationship with another trustee of the fund.

3. How much do you need for a self-managed super fund?

If you’re going to put the time and effort required into an SMSF, it is generally agreed that you need at least $500,000 to make it worthwhile. SMSF fees are charged based on a flat fee rather than as a percentage of the balance which is why they are often chosen for larger funds with substantial assets.

4. Do I need to hire someone to manage my SMSF?

Yes, every SMSF needs to have an independent advisor who specialises in the area and can help you to add value to the fund. At Carbon, we have an experienced team of accountants and business advisors in Brisbane, Melbourne, Sydney, Perth and Adelaide who can help you to set up or manage an SMSF. We can also help you to prepare for any audits or add or change members.

5. When can I get access to my SMSF?

In order to access the benefits of your SMSF, you need to be at least 65 years old. In certain cases, you may be able to withdraw funds from your SMSF, for example, if you’re in severe financial hardship, you can withdraw $1000 to $10,000, but you can only do this once every year and you’ll need proof of your circumstances.

Call us today

If you think you’ll benefit from having a self-managed super fund, call our experienced accountants in Sydney, Brisbane, Melbourne, Adelaide or Perth today on 1300 454 174 to discuss how we can maximise your savings and help you prepare for a comfortable retirement.