Self Managed Superannuation Funds (SMSF) have become an extremely popular investment vehicle.
The main motivation to establish a SMSF is:
- The members and trustees have a greater control over their superannuation fund
- Control over investment strategies
- Control over investments
- Ability to manage fees and costs
- Can be used for efficient estate planning
There are considerable restrictions on the investment activities of SMSFs and they are subject to strict compliance and reporting obligations. Managing a SMSF is a considerable responsibility.
Penalties for SMSF non-compliance can be severe, including the possibility of substantial unplanned tax liabilities. The members are trustees of the fund and are responsible for the compliance of the fund.
Super 21 offers an administration service so trustees can ensure they are compliant.