- What is a SMSF?
- SMSF Setup
- Fully Maintained Service
- Benefits of SMSFs
- Purchasing Property & SMSF
- Other Services
Control and understanding
SMSF's have access to a broader range of investment assets than conventional superannuation funds. As well as the usual cash, fixed interest and managed funds, SMSFs also have access to investments such as residential and commercial property and direct shares."
Tax-effective Insurance Coverage
There are two main advantages to holding insurance in a SMSF:
Borrowing to Invest
New rules introduced a few years ago allow SMSF to borrow money to invest, subject easier for SMSFs to acquire larger assets such as direct property, and hold the investment in the tax advantage superannuation environment.
What will happen to your estate after you are gone? Will your dependants be supported? Superannuation is likely to be a substantial asset, particularly for people with SMSFs who have higher average account balances. It is essential to ensure that superannuation funds will be paid to your dependants in the most tax effective way.
Avoiding CGT by selling assets in pension phase
Once you start a pension in a SMSF, the investment assets that support that pension are subject to zero tax in the fund. This means that earnings and capital gains on those assets are tax free although you still receive the benefit of any franking credits from share holdings. By timing the sale of assets in the fund, substantial tax savings can be achieved such as paying zero Capital Gains Tax.
It's essential that the circumstances of the fund are reviewed to determine whether this strategy will be effective. For example, assets that support both accumulation and pension members may be only partly tax free. Your Count Adviser can assist with this process.
Transition to Retirement
Once you reach age 55 you can start a pension in your SMSF - even if you're still working. This can be a dynamic strategy as pension payments are tax effective and can supplement your income, particularly if you are moving to part-time employment.
One of the greatest advantages of this strategy is that assets within the fund that support the pension are subject to zero tax. This strategy can be enhanced by salary sacrificing your employment income while at the same time receiving pension payments from a transition to retirement pension.
The advantages of this strategy are: