What are Self-managed super funds?
Self-managed super funds (SMSF’s), just like super funds, are a means of saving for your retirement. However unlike other types of funds, they give you the control over how and where you invest your super funds.
Before you start
Being responsible for your fund is a major financial decision and requires specific skills and a lot of time. You should seek professional advice before setting up an SMSF.
Getting started
While you are in control of how and where you invest your funds, there are laws and parameters in place to guide you to invest your money smartly.
Managing your SMSF
As the trustee, you must act in the best interest of all of your SMSF’s members. You must also treat your fund as a separate entity. This means that your SMSF’s assets must be kept and recorded separately to your personal and business affairs, and to those of its other members. Any Members, including yourself, cannot remove or add funds to your SMSF unless it complies with SMSF laws, and appropriate protocols are followed.
As a trustee you will need to keep appropriate records and report your funds operations to the ATO.
FAQs
Will the income from my SMSF be taxed?
Yes. Your SMSF income will be taxed at a concessional rate of 15%.
When can I access the money from my SMSF?
Like traditional super funds, a number of parameters must be met before a member of an SMSF can access their funds. These can include reaching the preservation age, retirement, death and terminal illness.
References
http://www.ato.gov.au/Super/Self-managed-super-funds/Thinking-about-self/managed-super/