SMSFs can offer a number of features and benefits generally not available with other super arrangements.
More investment control
You can establish your own investment strategy and directly control where and
how your super is invested. You’ve also got the flexibility to create an investment strategy that addresses the combined or unique needs of all fund members.
More investment choice
You can select from a wider range of investments including:
- all listed shares
- some unlisted shares
- residential and business property, and
- collectables such as artwork, stamps and coins.
One fund for the family
If you set up a fund for yourself and up to three family members, you could:
- consolidate your super balances
- invest in assets of higher value
- achieve greater estate planning flexibility, and
- reduce costs.
Borrowing to make larger investments SMSFs can buy assets such as shares and property by using cash in the fund and borrowing the rest. This can enable the fund to acquire assets it currently doesn’t have enough money to purchase outright.
Tax effective
With SMSFs you can:
- take greater control over the timing of tax events, such as when capital gains and losses on assets are realised
- transfer certain assets directly into your fund by making ‘in specie’ contributions, where investment earnings will be concessionally taxed, and
- use your super to start a pension potentially without triggering capital gains tax.
- Also, if a member dies or becomes disabled and is aged less than 65, the fund may be able to claim the future service element of the benefit as a tax deduction and offset current and future fund tax liabilities.
Greater estate planning certainty and flexibility
You can nominate which of your ‘dependants for superannuation purposes’ you’d like to receive your benefit in the event of your death without having to meet some of the constraints that apply to other super arrangements.
