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Self-Managed Superannuation (SMSF) 101
1. What is an SMSF?
2. Benefits of having an SMSF
3. What do I need to consider before starting an SMSF
4. What will an SMSF Cost?
5. Common Investments in SMSFs
6. How do I set up an SMSF?
Contents
1. What is an SMSF?
S U P E R A N N U A T I O N S P E C I A L I S T S
Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)
An SMSF is a type of Superannuation fund where you, as a trustee and
members, have responsibility over the management, investment and
administration of your fund.
SMSFs are quite different from other super funds because they give you total
control over how your Super balance is invested. SMSFs open up a world of
investment options that may not be accessable in a retail or industry fund.
An SMSF may be appropriate for someone who wants to take their retirement
goals seriously and prefers to make their own investment choices, rather than
leave their Superannuation to be invested by fund managers.
SMSFs are run by you, for you and any other members of your SMSF and are
established for the sole purpose of building retirement savings.
SMSF structures can be quite complex depending on the asset classes you
invest in. There's a lot to consider, but partnering with qualified professionals
like Future Assist save you time and the administrative burden to free you up
to focus on making the decisions.
SMSF structures can be quite complex depending on the asset classes you
invest in. There's a lot to consider, but partnering with qualified professionals
save you time and the administrative burden to free you up
2. Benefits of SMSF:
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1. Control:
SMSF assets are controlled by you (the trustee/s), who can choose exactly
what the fund invests in. This includes direct residential or commercial prop-
erty, direct equities, Cash, Gold and many other asset classes, with the
possibility of gearing into these investments.
2. Flexibility:
Trustees have the flexibility to make decisions regarding investments quickly
(for example when the market is moving), and select options for securing
your retirement income streams.
3. Families:
SMSFs may provide advantages in a family situation where up to four mem-
bers are trustees and contributing towards your family SMSF.
4. Taxation:
A self-managed super fund enjoys one of the lowest rates of tax of any
entity structure in Australia. This can prove very advantageous when invest-
ing for the purposes of retirement.
5. Direct Asset Investment:
A large motivating factor of setting up an SMSF for a lot of Australians has
been the possibility of direct equity and property investment.
Residential and commercial property investment is one direct asset class
which is not available inside retail and industry funds. Nor is the ability to use
your superannuation as leverage to borrow funds and invest in residential or
commercial property. Many Australians prefer to invest in property because
they are comfortable with it. Chances are they own or are paying off their
own home and know and understand the market better than equities,
precious metals, bonds or any other investment class.
Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)
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Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)
3. What do I need to consider before
starting an SMSF: starting an SMSF:
There's a lot to consider before you decide to set up an SMSF. This includes, among
other things, your super balance, your current and future super contributions, the
number of members joining the fund and their ages, how much time you have to spend
on your SMSF, your retirement goals, investment preferences and your risk profile.
The Australian Tax Offices first recommendation on their website for someone wanting
to consider an SMSF is it is strongly recommended you seek professional advice and
assistance to set up your SMSF. Such as an adviser or accountant, both of which you
can get access to as a client of Future Assist.
All circumstances are different, however generally you need to have a reasonable
amount of super, or be looking to build up your super quite quickly, to justify the costs
of an SMSF. Everyone has a different view of 'how much' money is enough to start a
SMSF, and there is no legal minimum. As a guide the ATO's suggests a minimum of
$200,000 (that is, if the total balance of all members in the fund equates to $200,000 or
more). This is based off an ATO average running cost of $4,400 per annum.
Future Assist have clients with balances lower than $200,000, and due to our running
costs being significantly lower, can justify a lower entry balance.
As an SMSF trustee, it is important that you are aware of and understand the duties,
responsibilities and obligations of being a trustee. You will need to ensure that your
fund operates in accordance with all applicable laws. You will also need to be aware of
and follow the rules set out in your fund's trust deed.
You need to be comfortable making investment decisions around when, where and
how to invest or consider working with an adviser to help you. In particular, you should
seek advice around borrowing if this is of interest to you. Depending on your
circumstances, gearing in your super may or may not be appropriate.
Future Assist is a Full Services accounting-based financial planning firm who help
shoulder the burden of administration and compliance, releasing you to make informed
investment decisions.
The average SMSF trustee in Australia spends 2 3 hours per week
administrating their SMSF. The average Future Assist client spends about 3 hours per
year on administrational obligation.
You should consider discussing your situation with a Future Assist adviser before
deciding if an SMSF is right for you.
4. What will an SMSF cost?
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The costs of setting up and running an SMSF vary depending on, among
other things, your circumstances, super balance, investment strategy and
how you choose to manage your fund. The more complex you make it, the
more it is likely to cost.
However, with this said, the difference between an SMSF and a retail or
industry fund is the fact that SMSFs operate on a fixed annual fee, as
opposed to an ongoing percentage of your fund balance.
In certain cases, SMSFs have lower associated fees compared to
other super funds.

Future Assist Accountants administer SMSFs on a fixed annual fee, as
opposed to most funds that operate on a percentage of your total balance.
With Future Assist, the more your super grows, the more economical an
SMSF will become and the more expensive it then becomes to leave it other
super funds who charge on a percentage basis.
4. What will an SMSF cost?
The costs of setting up and running an SMSF vary depending on, among
other things, your circumstances, super balance, investment strategy and
how you choose to manage your fund. The more complex you make it, the
However, with this said, the difference between an SMSF and a retail or
industry fund is the fact that SMSFs operate on a fixed annual fee, as
In certain cases, SMSFs have lower associated fees compared to
SMSFs on a fixed annual fee, as
opposed to most funds that operate on a percentage of your total balance.
With Future Assist, the more your super grows, the more economical an
SMSF will become and the more expensive it then becomes to leave it other
super funds who charge on a percentage basis.
Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)
Life is as much about the journey
as it is the desination
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Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)
5. Common Investments in SMSFs:
Shares and other ||sted secur|t|es |nc|ud|ng exchange traded
funds (ETFs).
Separate|y managed accounts - where a share portfo||o |s
constructed and managed by a professional investment manager based
on your needs.
Managed funds - cover|ng most asset c|asses |nc|ud|ng Austra||an and
international shares, property, alternative assets, fixed interest and cash.
Term depos|ts.
D|rect property - |nc|ud|ng bus|ness, res|dent|a|, commerc|a| and reta||
property.
Other assets such as der|vat|ves, un||sted shares and co||ectab|es (for
example artworks).
Superannuation law doesn't specify the various types of investments for
super funds, however the Superannuation Industry (Supervision) Act 1993
requires trustees to comply with a number of duties and obligations when
making investment decisions.
Shares and other ||sted secur|t|es |nc|ud|ng exchange traded
Separate|y managed accounts - where a share portfo||o |s
constructed and managed by a professional investment manager based
on your needs.
Managed funds - cover|ng most asset c|asses |nc|ud|ng Austra||an and
international shares, property, alternative assets, fixed interest and cash.
Term depos|ts.
D|rect property - |nc|ud|ng bus|ness, res|dent|a|, commerc|a| and reta||
Other assets such as der|vat|ves, un||sted shares and co||ectab|es (for
Superannuation law doesn't specify the various types of investments for
super funds, however the Superannuation Industry (Supervision) Act 1993
requires trustees to comply with a number of duties and obligations when
The general process of setting up an SMSF involves:
Oreat|ng a trust deed,
Appo|nt|ng trustees,
Oomp|et|ng ATO forms,
Sett|ng up a bank account,
Ro|||ng over your super,
Sett|ng an |nvestment strategy, and
There are a few other things that you need to consider and put in
place to become fully compliant.
Future Assist is uniquely set up to help you with this process.
Future Assist utilise integrated accounting and financial
planning departments to be able to offer compliance peace of
mind as well as investment advice.
For more information on how the set up process works,
contact us today: 1300 118 618
S U P E R A N N U A T I O N S P E C I A L I S T S
Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)
There are a few other things that you need to consider and put in
Future Assist is uniquely set up to help you with this process.
mind as well as investment advice.
For more information on how the set up process works,
contact us today:
The general process of setting up an SMSF involves:
Sett|ng up a bank account,
Ro|||ng over your super,
Sett|ng an |nvestment strategy, and
There are a few other things that you need to consider and put in
place to become fully compliant.
Future Assist is uniquely set up to help you with this process.
Future Assist utilise integrated accounting and financial
planning departments to be able to offer compliance peace of
mind as well as investment advice.
6. How do I set up an SMSF?
S U P E R A N N U A T I O N S P E C I A L I S T S
Sydney | Melbourne | Brisbane | Southport
Phone: 1300 118 618
www.futureassist.com.au/smsf-questions
General Advice Warning
The contents of this e-book are of a general nature only and have not
been prepared to take into account any particular individuals objectives,
financial situation or particular needs.
Future Assist is a licensed financial services group (AFSL No. 413674) with
financial advisers able to advise you on many financial products, however
this needs to be done through an initial consultation to ascertain your
overall situation to ensure the accuracy of advice.
We also recommend that you should seek professional advice from a
financial adviser before making any decision to purchase any financial
product referred to in this e-book. While the sources for the material are
considered reliable, responsibility is not accepted for any inaccuracies,
errors or omissions.
Phone: 1300 118 618
[email protected]
www.futureassist.com.au/smsf-questions
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Future Assist Financial Services Group Pty Ltd (ABN 24 151 337 843, AFSL No. 413674)