WHAT IS A SELF MANAGED SUPERANNUATION FUND ?
A Self Managed Superannuation Fund is established by the execution of the Trust Deed by the proposed members/Trustees. The Deed provides for the benefits to be paid as a lump sum, allocated pension, life time pension, fixed-term pension or combinations thereof, providing control and flexibility in an extremely tax efficient investment and income stream instrument. Each member’s account can be tailored to suit changing family and financial circumstances.
Members taking control of their superannuation are conferring equal importance on superannuation and non-superannuation investments. Ultimately, all investments are being made with a view to the members and dependents living with dignity and in comfort.
Over 280,000 small superannuation funds (four or less members) with assets in excess of $97 Billion in value exist in Australia today.
A Self Managed Superannuation Fund is administered in accumulation or pension modes or combinations thereof. The main features are:
A Self Managed Superannuation Fund:
If the Trustee is a company:
A single member Self Managed Superannuation Fund may have a company as
Trustee if the member is:
If the single member Fund Trustee is not incorporated the Fund must have
two individuals as Trustees where the non member Trustee is:
WHO CAN BE A TRUSTEE
Generally anyone over the age of 18 can be a Trustee of a superannuation
fund if they are not a disqualified person. An individual is a disqualified
A company would not be permitted to act as Trustee if:
The requirement that all members be Trustees ensures each member is fully involved in the decision making process and proper management of the Fund making sure of standards compliance, acting honestly and prudently in the best interests of all members while applying the same care, skill and diligence as if entrusted with the property of another.
As the fund assets are beneficially the members and dependents, then who better to act as Trustee than the members or a company controlled by the members.
Members of the same fund may fit into different account phases, that is, one member may be in accumulation phase whilst another is receiving a pension/s. One member may be self-employed while another is an employee.
Zenith will assist on all matters pertaining to Trusteeship and provide all establishment documentation including Trust Deed, Regulatory applications, minutes and arrange the rollover of previous fund assets.
DEATH & DISABILITY BENEFITS
The Trustee may include insured death and disablement cover on a member. Existing insurance policies may be transferred into the Self Managed Superannuation Fund with premiums paid by the Trustee/s being tax deductible to the Fund.
Death benefits payable to a member’s dependents are normally tax free while Total and Permanent Disablement benefits paid to the member receive special tax concessions.
The administration of the Self Managed Superannuation Fund in accumulation
or pension modes maximises the substantial taxation concessions available.
Investment earnings on assets producing a fund pension are currently
TAX FREE. Fund administration, audit, regulatory lodgement fees and insurance
premiums are tax deductible fund expenses. Excess imputation credits are
refunded by the ATO to the Fund.