SMSF SetupScroll to begin.
Setting up a self managed super fund (SMSF) can be a complex and time-consuming task. While there are many benefits associated with managing your own super, expertise is needed to prevent problems and maximise growth. Before you get started, it's important to understand all of the potential risks, benefits, and opportunities. From SMSF setup costs and application details to taxation requirements and investments, there are lots of issues to consider.
At WT Capital, our partners provide a complete solution for SMSF funds, including all aspects of administration, accounting, taxation, investment, compliance, and technical support. They combine advanced knowledge with vast industry experience to streamline all aspects of SMSF management.
What is an SMSF?
Sometimes called DIY super, a SMSF is a private super fund that you manage yourself. A SMSF provides investors with greater financial control and more investing opportunities than retail or industry super accounts. Standard superannuation products in Australia are extremely limited in terms of their flexibility and growth potential. SMSFs are rapidly growing in popularity across Australia, with nearly 600,000 funds hosting over 1.1 million SMSF members according to the Australian Taxation Office (ATO).
Is a SMSF the right decision for me?
Before you set up an SMSF, it's important to analyse your individual financial situation. While self managed funds can be very advantageous, they're not ideal for everyone. Before you look at how to set up a self managed super fund, you need to be sure you're making the right decision.
The following considerations are key:
First, you need to be honest with yourself about the time and resources you have available. If you don't have the knowledge or skills to manage your own fund, you'll need to work closely with an external provider.
Second, you must meet a financial threshold to make self-management a viable solution. You must ensure that you (and if applicable, your co-trustees) have adequate funds to make having a self managed super fund a viable option.
Third, it's essential to be clear about the benefits of a SMSF. While managing your own fund can be extremely rewarding, the advantages are not applicable to all people and financial situations.
“SMSFs are rapidly growing in popularity across Australia, with nearly 600,000 funds hosting over 1.1 million SMSF members according to the Australian Taxation Office (ATO).”
SMSF setup benefits and risks.
There are lots of advantages associated with running your own super fund, along with some challenges and risks. Before you look at SMSF setup solutions, it's important to review the following benefits and how they relate to your financial situation:
Greater control over investments
Wider choice of investment options
Ability to consolidate family or business finances
Increased borrowing capacity
Tax savings and control over tax events
Certainty over estate planning
The challenges and risks associated with setting up a SMSF include additional legal obligations, the need for greater financial resources, and potential exposure to riskier investments.
How to set up a self managed super fund.
Self managed super fund setup can be a complex and time-consuming process. To avoid mistakes, it's important to work with trusted financial experts. The SMSF setup process typically involves a few separate stages, from consultation and review to application, registration, and activation.
At WT Capital, our trusted partners offer complete self managed super fund setup based on the following services:
Detailed fund review
Once they’ve received your completed application, they will review your data and send you a starter pack to sign. They will register your fund with the ATO and provide you with comprehensive details for your records. Once your fund is established, they’ll open accounts, roll over your existing super, and help you to direct contributions. If you require administration services, financial management, or ongoing support, our financial experts are ready to help.
At WT Capital, we specialise in SMSF property investing. You can review your eligibility at our website, use our retirement calculator to check your financial health, or look at our case studies to examine our experience. If you need support or guidance, please contact WT Capital today.
Frequently Asked Questions.
Setting up a SMSF can be a complex and time-consuming procedure. Certain boxes need to be filled before you're eligible for tax concessions or able to receive contributions. Based on information from the ATO, the following steps are needed: consider working with professionals, choose trustees, appoint trustees or directors, create the trust and trust deed, check your fund is Australian, register your fund and get an ABN, set up a bank account, get an electronic service address and prepare an exit strategy
Setting up a SMSF involves a number of expenses, with different companies offering their own fee schedules based on services provided. In most situations, SMSF setup with individual trustees has a lower cost than SMSF setup with a corporate trustee. There are also other one-off fees, including corporate and custodian trustee setup and SMSF property investment services. Once the fund has been set up, monthly charges apply based on the level of administration and management required.
There are many valid reasons to set up a SMSF, including greater flexibility, more control, and significant tax savings. SMSF trustees also have greater control over the timing of taxation requirements and the ability to consolidate family or business finances within a single arrangement. However, before you look at SMSF setup benefits and solutions, it's important to review potential risks and how they relate to your financial situation.
For taxation purposes, a SMSF is treated the same as retail, industry, and corporate funds. Self-managed funds offer greater control over taxation, however, with individual trustees able to determine when taxes are paid. In Australia, the current tax rate on earnings within a SMSF is 15%. However, if assets wholly produce an income stream such as a pension, there is no tax payable on that income. According to the ATO, the assessable income for a SMSF includes employer and personal deductible contributions; interest, dividends and rent; and net capital gains.