Do You Need A Self Managed Super Fund?
A Self-Managed Superfund (SMSF) has been one of the most talked about items in discussions
surrounding tax, due to the numerous tax advantages it brings, both from the tax and investment point
1. Ability to hold business premises in your fund, where your business will pay rent to your SMSF. High degree of speed and control over the assets your SMSF holds so that you can quickly take advantage of market opportunities when they happen.
2. Ability to hold a more diverse range of assets compared to ordinary retail funds, such as unlisted shares and direct property.
3. Ability to borrow money in a limited recourse arrangement to purchase assets such as property. This entails a lot of regulation and paperwork, so be sure to speak with your licensed accountant.
4. Allows the pooling of resources from a single family in the same SMSF to buy larger assets.
However, keep in mind that it might not be suitable for everyone, here are the things you need to consider before jumping in:
The penalties for non-compliance are severe and require careful work with your accountant to ensure your fund is compliant.
There are numerous other advantages and disadvantages and as everyone’s personal and tax situations are different it is worth coming in for a chat with one of our licensed advisors to help determine if an SMSF is for you.
Via Jonathan Lee – Supervisor As Partners
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