Self-managed super funds (SMSFs) are a great way to take control of your superannuation, but you should first consider whether they suit your needs and skills.
There are many reasons why people establish an SMSF. The main is a desire to take an active and direct role in managing your own super. Being a trustee of an SMSF presents opportunities that also carry serious and wide-ranging responsibilities.
The Australian Taxation Office (ATO) have developed tools to help you make an informed decision. Web content and online courses can provide assistant to people thinking of setting up an SMSF.
Before setting up an SMSF, it’s important to do your research and to understand the pros and cons. The ATO recommend you consider consulting an independent, qualified, licensed professional before you make the decision to establish an SMSF.
As a trustee of an SMSF, you’ll be responsible for operating the fund within the law. If you fail to comply with superannuation laws, you may face penalties and your fund may suffer tax consequences.
SMSFs are a key part of Australia’s superannuation system. As regulators, the ATO work in partnership with the Australian Securities and Investments Commission to inform and support the community and to manage the sector.
For more information on SMSFs, visit ato.gov.au/thinkingSMSF