Superannuation is the retirement / pension program set up for Australians benefit. This is an important benefit because employers pay an extra amount to their worker’s earnings. Ordinarily, as a resident of Australia, you may decide to deposit your super payments and your private super contributions into independently run superannuation funds; or alternatively operate your own Self Managed Superannuation Fund. An SMSF is a fund established to accumulate and subsequently hand out retirement payments to its members and just now SMSFs are becoming increasingly well reviewed by investors who have done their homework.
The regulator of self managed superannuation funds, the Australian Taxation Office, is accountable for safeguarding the retirement income scheme by making certain that any SMSFs adhere to the rules that are stipulated in the income tax and superannuation legislature. So if you have taken the decision to establish a self managed super fund, then it is imperative that you understand any duties and commitments that come with being a trustee.
If you establish a self managed superannuation fund you are obligated to do the job of a trustee plus any associated legal responsibilities. As a trustee you must also guarantee that any fund and profits from the SMSF are used only as retirement benefits. You must also maintain comprehensive records as well as arranging an audit every year with a qualified auditor.
These SMSFs hold around a third of all the cash placed in superannuation schemes by Australians. The main draws of SMSFs are that investors can have a voice in where their superannuation money is invested; SMSFs can help investors gain added tax efficiencies and SMSFs also save on administration charges.
Investors can now have their superannuation investments working for them in this shrewd investment strategy because SMSF Trustees are authorized to borrow up to 70 percent on residential properties and 60 percent on commercial properties.
This is a first rate strategy for achieving a good retirement thanks to the increasing high property rents in Australia. Key rewards are;
Stronger Super is a government website about the Super System Review and is located at; http://strongersuper.treasury.gov.au/content/Content.aspx?doc=home.htm
More details on the creation of self managed superannuation funds can be read about at: http://www.ato.gov.au/superfunds/content.aspx?doc=/content/00182478.htm