An SMSF is a type of superannuation fund in Australia that is managed by its members, who also act as trustees. It allows individuals to have greater control over their retirement savings and investment choices.

The key difference between an SMSF and other superannuation funds is that SMSFs are self-managed, meaning members are also trustees responsible for managing the fund. This provides greater control and flexibility over investment choices but also places the onus on members to comply with superannuation laws. Other funds, such as industry or retail super funds, are typically managed by professional fund managers.

Generally, anyone over 18 years old can set up and become a member of an SMSF. An SMSF can have up to six members, and all members must be trustees or directors of a corporate trustee.

At Rivkin, we assist with the process of setting up your fund using a standard SMSF trust deed. If you would like to have a custom deed you will need to consult with a lawyer.  

SMSFs can invest in a wide range of assets, including cash, shares, property, and more.

However, investments must comply with superannuation laws and the fund’s investment strategy.

Trustees of an SMSF are responsible for managing the fund’s investments, complying with superannuation laws, keeping records, and ensuring the fund’s sole purpose is to provide retirement benefits for members.

There is no specific minimum amount required to set up an SMSF, but it’s important to consider whether the costs associated with running the fund are justified based on the size of your retirement savings.

If you would like to see an example of the fees incurred during the setup and administration of your SMSF, you can click here to see Rivkin’s SMSF product offering. 

SMSFs are generally taxed at a concessional rate, with income from investments typically taxed at a rate of 15%. Capital gains from investments held for more than 12 months may be eligible for a 10% tax discount.

Yes, SMSFs can borrow to invest in property, but strict rules and regulations are surrounding this practice, often referred to as a Limited Recourse Borrowing Arrangement (LRBA).

Generally, SMSF savings are preserved until retirement. However, there are limited circumstances where early access may be granted, such as severe financial hardship, compassionate grounds, or temporary incapacity. These cases must meet specific criteria and require approval from the Australian Taxation Office (ATO).