Self-Managed Super Funds, or SMSFs, are private superannuation funds that you manage yourself.
SMSFs are regulated by the Australian Taxation Office and can have up to four members – all of whom must be trustees and are responsible for decisions and compliance with laws.
SMSFs provide a range of flexible investment options and can offer significant tax benefits. However, they can be expensive to set up and run and require solid knowledge of legal and financial matters. SMSFs are most suited to individuals with large superannuation balances and who are prepared to accept the responsibility of running their own super fund.
SMSFs have many benefits, but they are not for the faint-hearted. They take significant time and effort to manage and come with a lot of responsibility.
While you can hire professionals to help you run an SFSF, ultimately you are legally responsible for it. So unless you have extensive knowledge of investments and legal matters, they are probably not suitable.
SMSFs operate under similar rules and restrictions as ordinary super funds.
Your roles responsibilities as the operator of an SMSF will include:
An SMSF gives you access to a broader range of investment options than a traditional superannuation fund.
So along with shares, property, managed funds and term deposits, you can also invest in collectibles and even cryptocurrencies.
An SMSF can invest in:
A sobering note of caution, however. While an SMSF can hold collectibles, there are strict rules around how they are stored and used. For example, the collectibles must be insured in the name of the fund and they can’t provide a day-to-day benefit. That means you can’t drive your beautiful vintage car, or hang your artwork in your home – or indeed your business premises.
While you can hire professionals to help you run an SMSF, ultimately you are legally responsible for it. So unless you have extensive knowledge of investments and legal matters, they are probably not suitable.