SMSFs

Self-managed superannuation funds, commonly known as SMSFs, are a type of superannuation fund in Australia that allows individuals to manage their own retirement savings. SMSFs provide members with a high degree of control over their investment decisions and the administration of their fund. Setting up an SMSF involves establishing a trust deed and appointing individual trustees or a corporate trustee. These trustees are then responsible for complying with the Superannuation Industry (Supervision) Act 1993 and its associated regulations.

SMSFs are designed for individuals who are comfortable with the responsibilities of managing their own investments and ensuring compliance. Trustees must act in the best interests of the fund members, which includes making investment decisions that are consistent with the fund's investment strategy and ensuring the fund is operated for the sole purpose of providing retirement benefits. This involves careful consideration of investment diversification, risk management, and the ongoing need to meet regulatory requirements.

The costs associated with running an SMSF can vary depending on the complexity of the investments and the level of administration required. Many SMSF members choose to engage with financial advisors, accountants, and administrators to assist with compliance and investment advice. While SMSFs offer flexibility and control, potential trustees should thoroughly understand their obligations and the potential risks involved before establishing one.