Self Managed Super Funds (SMSF)

As Australia’s population continues to age, questions around retirement and superannuation only become more important. However, once you get to this point, there are many choices in which to accumulate funds for your retirement.

Whether this is a retail fund, public sector fund, corporate fund or industry fund, there is one type of superannuation fund that is particularly more popular today - Self-Managed Super Funds (SMSF). According to the Australian Taxation Office (ATO), the SMSF sector is the most significant in the industry accounting for 99 per cent of all funds.

Based on further statistics from the ATO, as of June 2014, there were over 530,000 SMSFs in Australia encapsulating more than a million members. In fact, during the 2013-14 financial year alone, more than 32,000 new SMSFs were launched.

Despite the remarkable number of Australians starting SMSFs, they can be very difficult to manage right from the beginning. As such, it will be important to find an SMSF expert auditor to help you manage each step of the journey.

This is where DBS Accountants are of assistance. With years of experience and skills in relation to SMSFs, we are in a great position to ensure the SMSF is established properly and well-maintained until its conclusion.

We provide a full range of SMSF related services including:

  • Establishment of SMSF and SMSF trustee company

When you first launch your SMSF, one of the first processes is to decide on fund members and trustees.

In relation to this, you have two choices. You can either have a company as the fund’s trustee or have individuals. This is an important decision to get right as there are various costs and fees associated with changing it over at a later stage. Additionally, if your SMSF setup is incorrect, the ATO can apply serious financial penalties.

As there are many different combinations within both individual trustees and corporate trustees, it is best to talk to an independent SMSF accountants and auditor who can guide you in the right direction.

  • Preparation of annual accounts, tax returns, member statements etc

Each financial year, an SMSF brings the requirement to prepare various annual accounts, tax returns and member statements. These annual obligations must be submitted correctly which is where a registered self-managed super fund auditor is of help.

Although personal responsibility of an SMSF remains with you, an auditor can ensure that all contributions have been added correctly and every payment is cross-checked and accurate.

  • Advise on compliance with SIS Act and Regulations, Income Tax regulations

Of course, one of the most importance aspects of running your own SMSF is compliance. The Superannuation Industry (Supervision) (SIS) Act is full of complex regulations and rules which can trip up those new to the SMSF industry.

As such, DBS Accountants are able to offer accurate income tax advice that ensures you can continue to make investments and contribute to your superannuation without breaking the rules.

  • Accounts based pensions, Transition to Retirement Pensions, Rollovers, ETP Payments and winding up of SMSF

At the end of the accumulation phase of your SMSF, you and your trustee members have a number of vital decisions to make. Once a final accounts have been reviewed by an independent SMSF auditor, you can transition over to a retirement pension or roll over all of the assets managed in the super fund.

In addition to this, DBS Accountants’  are also able to assist with employment termination payments (ETP) which are made to you at the end of your employment. The amount that you are entitled to depends on the length of your employment and age, which is a calculation an accountant can complete.

This can be a complex process and is something that will need to be balanced against your future needs and wants. With this in mind, consider finding an SMSF accountant to assist your decision.

  • SMSF Borrowings, Custodian Trust, Compliance with SMSF borrowing rules

As it is possible to borrow against your SMSF, it is important that this process is done in the right circumstances and within the right legal framework. There are a number of complex SMSF borrowing rules and adhering to each and every one is vital.

An SMSF accountant can also aid you around custodian trusts and meeting basic regulatory standards.

  • Updating of SMSF trust deed

An SMSF’s trust deed is one of the most important pieces of the fund. However, it is important to remember that the information included often changes and therefore needs to be updated. Industry experts estimate that the optimal timeframe for trust deed review is at least every three years and, if possible every year.

DBS Accountants are able to offer advice and guidance on how to both establish a trust deed and ensure it is updated in the best possible way.

Want to learn more?

If you wish to talk to our expert SMSF accountants and auditors or learn more about how we can improve your SMSF processes, contact us today. Likewise, our website is able to provide a comprehensive overview of all our accounting services.

To discuss in more depth with our team, call us today on 02 9796 4500.

Rajeev Dixit is Authorised Representative 1239763 of Merit Wealth Pty Ltd, Australian Financial Services Licence 409361, ABN 89 125 557 002

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