Instead of making so-called passive investments into a super fund, a growing number of Australians are opting for self-managed super funds (SMSFs) as the best solution to boost their retirement savings and reduce the fees that cut down on their returns. In fact SMSF is recognized as one of the fastest growing sector within the Australian super industry simply because it gives people more control over their retirement nest egg. A wide range of investment opportunities, reduced tax fees, more flexibility when it comes to managing your savings, SMSFs sure come with a lot of advantages, but they also include some essential rules that you must follow in order to make sure your super fund complies with the Superannuation regulations and the Superannuation act which are established by the Australian Taxation Office (ATO).
To achieve this you need effective Smsf administration, which includes all the compliance and reporting obligations as well as the specific administration requirements of the fund. You need to ensure everything is completed within the determined deadlines and this includes all the reporting and tax management obligations. The administration of SMSFs requires extensive knowledge of all the relevant laws, regulation and established deadlines. That’s why many Australians choose to hire an SMSF administration firm that provides a wide range of specialized services. A reliable administration firm can offer all the essential services for SMSF trustees and make sure the super fund complies with the law and is thus eligible for tax deductions. Here are some of the services these firms can offer you.
Setting up the SMSF
For your SMSF to be eligible for tax deduction and receive contributions it must be set up correctly following all the relevant rules of the ATO. It’s important to know that one SMSF can’t have more than 4 members and it should be established with the only purpose of providing retirement benefits. The SMSF professionals at the administration firm can make sure your fund is established according to all the laws and regulations, so you don’t have to worry if the whole process is done correctly.
Managing the fund according the rules of the Trust Deed
The trust deed is a legal document that sets out all the rules that trustees must follow when managing the fund. Also the SMSF must by regulated by the ATO, which provides each fund with a Tax File Number (TFN). There are many compliance requirements that your fund should fulfil so that it can receive and make payments and contributions. The SMSF professionals can introduce you to all these rules, so you can get more familiar with the whole administration process.
Taxation and Audit services
Each financial year the SMSF is required to fulfil a number of taxation obligations, some of which include the annual audit, asset valuation obligations and preparation of fun accounts. In this case it’s essential to follow the lodgement due dates and review your investments and contributions, which are all things that require the professional assistance of an administration firm.