Self Managed Super Fund Accountant

Many assume that only the wealthy can set up and benefit from establishing a SMSF, but this is not the case. Granted, you need a sizable amount in your supersaturation account, but with smart planning, anyone can accumulate enough super to establish an SMSF.

SMSFs prove to be a very popular option for Australians. The ATO’s ‘Highlights: SMSF quarterly statistical report September 2020’ report states that there are 591,905 SMSFs in Australia, with 1,112,109 combined members. 53% of SMSF members are male and 47% are female, and 86% of SMSF members are 45 years or older.

Truth be told, anyone can benefit from establishing a SMSF. Those likely to benefit the most however are:

• High income-earning and large net-worth taxpayers
• Retirees looking to manage their own retirement fund
• Self-employed individuals looking to make their superannuation more profitable
• Employees seeking more control over their superannuations savings
• Employees disappointed with their current superannuation fund returns

You don’t need to be hands-on to have an SMSF. In fact, you don’t have to do anything at all! The CBA and the SMSF Association categorise members into four investor profiles: the controller, the self-directed investor, the coach seeker, and the outsourcer.

• The controller: Has a high level of control in the management and investment decision-making process. Has total confidence in their own abilities.
• The self-directed investor: Is self-confident but seeks professional advice for management and investment decisions.
• The coach seeker: Has a moderate level of control in the management and investment decision-making process but outsource some areas.
• The outsourcer: Prefers to outsource the SMSF administration duties and investment decision-making.

Whether you’re more of a controller or outsource, self-directed investor or coach seeker, Grow Advisory Group can help. Every SMSF needs an SMSF accountant, and we’re here to help you as little or as much you need. Contact our qualified accountants for your SMSF accounting needs on the Gold Coast today.

It’s important to understand that you need to have a minimum amount of money in your super for it to be beneficial to you before you approach an SMSF accountant or set up a SMSF.

If you do research on this subject, you will find varying answers from some very reputable sources.

• CanStar state that you only need $200,000 to start an SMSF.
• SuperGuide state that “having at least $500,000 in super is a good yardstick, although starting with less may be justified in certain circumstances.”
• ASIC states that “SMSFs with balances below $500,000 have, on average, lower returns after expenses and tax compared to industry and retail super funds”.

If you are looking for the biggest returns, it may be beneficial to wait until you have $500,000 in your super to start a SMSF. For SMSF advice relative to your situation, please speak with one of our experienced SMSF accountants. We’ll be able to advise whether or not you should start an SMSF with your current super total.

As a trustee of a Self Managed Super Fund, you have general duties, responsibilities, and compliance obligations to meet. These should all be considered before setting up a SMSF.

A trustees’ general duties and responsibilities include:

• Choosing the fund members
• Setting up a bank account
• Registering the fund with the ATO
• Setting up the trust and Trust Deed
• Planning an investment strategy
• Ongoing compliance and administration
• Understanding SMSF legislation
• Arranging employee contributions
• Rolling over existing super
• Keeping fund records for 10 years
• Prepare annual accounts and financials
• Value fund assets annually
• Lodge annual income tax return
• Lodge annual superfund returns (including members’ statements)
• Appoint an SMSF Auditor to conduct annual audits
• Pay the SMSF supervisory levy to the ATO and taxes

…. The list goes on

The ATO states that “as a trustee of an SMSF, you need to act according to the following:”

• your fund’s trust deed
• the provisions of super law, including
  • Superannuation Industry (Supervision) Act 1993 (SISA)
  • Superannuation Industry (Supervision) Regulations 1994 (SISR)
• the Income Tax Assessment Act 1997 (ITAA 1997)
• the Tax Administration Act 1953 (TAA 1953)
• the Corporations Act 2001
• other general rules, such as those imposed under other tax and trust law.

If you have any questions or are unsure as to your obligations as a trustee, it’s best to seek professional assistance from an SMSF accountant such as Grow Advisory Group. Our skilled Self Managed Super Fund accountants to ensure you, as a trustee, a compliant to your obligations to avoid any unnecessary penalties or fines.

One of the biggest benefits of an SMSF is that you can have almost any type of investment-grade asset in the fund. This includes property – commercial and residential, Australian and overseas shares – listed and unlisted, fixed income products, cash and term deposits, collectables, and physical commodities – gold, silver, etc.

ATO’s ‘Highlights: SMSF quarterly statistical report September 2020’ report states the top asset types held by SMSFs (by value) are listed shares (25% of total estimated SMSF assets) and cash and term deposits (21%).

There are, however, strict rules that apply to assets of a super fund, which should be investigated prior to purchase.

If you’re unsure as to which assets to buy in your SMSF or would like advice from an SMSF accountant regarding the financial pros and cons of SMSF investments, talk to Grow Advisory Group. We specialise in such areas and can look at your individual circumstances to provide the best possible SMSF advice.

SMSFs can be beneficial, but they can also be costly; to both set up and manage. There are several ongoing operational costs for accounting, independent auditing, financial advice, tax advice, financial statement, tax return, which Grow Advisory Group offer to clients and other fees. Other fees include an annual supervisory levy, insurance premiums, administration costs, and possibly legal advice and investing advice.

There is much debate around the average cost of an SMSF, with as much as $10,000 difference in the estimations. However, it is hard to provide an average because it is often based on the size of the SMSF. The larger the SMSF, the higher the costs.

For example, an SMSF of $500,000 is likely to cost around $5000, whereas, an SMSF of $750,000 may cost about $6000 per year to run.

According to the ATO, the median size SMSF is $408,237, up 28% over five years.

For more in-depth information regarding the cost of an SMSF, read the article from Morningstart.com.au. Alternatively, give Grow Advisory Group a call for a more relative estimation.

Our SMSF accountants have the skills and experience to review your SMSF setup and potentially reduce your administration fees. Moreover, we can help reduce your tax as you start drawing from the fund.