The pitfalls of DIY for Self-Managed Super Funds
So, you’ve decided on a Self-Managed Super Fund (SMSF).
Should you attempt to administer it on your own or utilise the expertise of a professional?
There is a myriad of rules and regulations to follow so employing the safety of a superannuation administration and accounting service might be your best bet.
Here are five reasons why:
1. The most important thing to bear in mind is the power to tax the fund at a highest marginal tax rate if you breach any of the superfund rules, which has the potential to cripple your fund’s investments.
2. The laws governing the administration of self-managed superannuation are numerous, complex and ever-evolving. Whilst the Taxation Office remains committed to educating trustees and members of SMSFs, it is now playing a more active role in enforcing compliance measures.
3. As the owner of an SMSF, you have responsibility for the compliance aspect of your fund. This means you need to ensure you are ready to prepare and lodge a tax return annually and have your fund independently audited every 3 years.
4. As trustee, you will also be responsible for the ongoing management of your fund. That might be as simple as ensuring:
- – your investments are at arm’s length
- – you don’t use the SMSF fund as a bank, and
- – you don’t use other investments personally.
It might also involve dealing with contributions, pensions, rollovers or actuarial certificates.
5. The government are also pushing an agenda that will see funds required to report far more frequently.
For peace of mind and a nominal fixed fee you can feel safe in the knowledge your reporting is up to date and your future protected. Call us today to find out more.