Self Managed Superannuation Funds
Self Managed Superannuation Funds (SMSFs) have become increasing popular. The need for an in-depth understanding of the management and compliance requirements for this type of fund has become more vital.
From 1 July 2016, any financial advice, including advice relating to SMSFs and their establishment will need to be provided by an adviser who holds an Australian Financial Services Licence (AFSL) or operate under an AFSL.
You need to have the time and skills to manage your SMSF, and there are ongoing running costs. As a trustee of an SMSF you'll be responsible for operating your fund within the law. If you don't, you may face severe penalties and your fund may suffer tax consequences.
As a trustee of an SMSF you have a number of administrative obligations which include keeping records, valuing the fund's assets, notifying the Australian Taxation Office (ATO) of any changes, appointing an independent auditor, lodging SMSF annual returns, and fund administration.
One of your responsibilities as a trustee is to ensure proper and accurate tax and super records are provided and kept for the required minimum time periods.
Although SMSFs are self managed and are often called 'do it yourself' or DIY Funds , you can't do it all yourself. You may need help with administration such as:
- Preparing SMSF accounts and tax returns
- Tracking of member account balances and components
- Organising the annual independent audit and liaising with the auditor
- Track and maintain investment valuations and CGT records
- Monitor and track contributions & pensions made to/from your SMSF
- Monitor compliance of your SMSF with relevant legislation
- Lodgement the SMSF annual return.
Pretium Solutions takes care of your SMSF administration and accounting efficiently and effectively.
Paul Sweeney is an SMSF Specialist Advisor™ (Self Managed Superannuation Fund Association) and a CA SMSF Specialist (Chartered Accountants Australia and New Zealand).
Establishing and advising on Self Managed Superannuation Funds
Establishing an SMSF is one of the most significant decisions an individual can make regarding their retirement savings. Both the Australian Taxation Office (ATO) and Australian Securities and Investment Commission (ASIC) have expressed concern that individuals are making this decision without proper consideration.
From 1 July 2016, accountants wanting to provide any financial advice, including advice relating to SMSFs will need to hold an Australian Financial Services Licence (AFSL) or operate under an AFSL.
This change means that any financial advice provided to trustees of SMSF’s will no longer be considered an accounting service, and must be provided like other forms of financial advice – under an Australian Financial Services Licence (AFSL).
Unless appropriately licensed, an accountant cannot recommend a client establish, or not establish, a SMSF even if they believe it is in their client's best interest.
Pretium Solutions Pty Ltd have partnered with Count Financial Limited (Count) to ensure that we can continue to provide strategic SMSF advice tailored to your needs. Count is Australia’s largest network of accountant-based professional advisers and has a 35 year history of supporting accounting firms to provide financial advice to their clients.
Please note that any taxation and accounting services are not endorsed nor the responsibility of Count Financial Limited.
Paul Sweeney is an Accountant Authorised Representative of Count and a director of Pretium Solutions Pty Ltd
What is the value of SMSF advice? Being the trustee of a Self Managed Super Fund (SMSF) gives you greater control and flexibility, but it also means you’re responsible for serious legal decisions surrounding your fund. We can provide tailored SMSF solutions and strategic advice to help you better manage your SMSF and focus on what’s really important to you. We can work with you on your SMSF strategy to ensure you are getting the most out of your SMSF.