This checklist has been designed to help you consider and understand the advantages and rules of using a self-managed superannuation fund (‘SMF’).

Questions:

Yes

No

  • Do you have or have you considered establishing a self-managed superannuation fund (SMSF)?
  • Are you aware that an SMSF can borrow in certain circumstances to purchase property?
  • Are you aware that an SMSF can borrow from you or related parties to fund its investment activities?
  • Are you aware that an SMSF can lease commercial property that it owns to a related party? For instance, your super fund could lease a factory or offices to your trading entity.
  • Are you aware that SMSFs that hold property for more than 12 months are entitled to a concessionary capital gains tax rate of 10%?
  • If you have already established an SMSF, has it been reviewed to ensure that it and its investment activities comply with Superannuation Industry (Supervision Act) (SIS Act) requirements?
  • Are you aware that if your SMSF is not SIS Act compliant, then all of the assets of the fund are liable to be taxed at the top marginal rate (currently 46.5%)?
  • Are you aware of the rules regarding contributions to an SMSF?

 

Establishing SMSFs (and exploiting their applications) can lead to positive tax and asset protection outcomes. However, these benefits can be eroded if the SMSF does not comply with strict requirements.

Pointon Partners, working in conjunction with your accountant, are able to advise on SMSF benefits and the ways to achieve them. We are also able to:

  • Prepare SIS Act compliant trust deeds to establish SMSFs
  • Prepare documentation that complies with SIS Act requirements to allow SMSFs to borrow for the purpose of purchasing property
  • Prepare commercial leases between SMSFs and related parties that comply with SIS Act requirements
  • Generally advise on your SMSF’s SIS Act requirements to ensure that it remains a complying fund.

 
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