Self Managed Super Fund FAQs

Self Managed Super Funds give you more control over your retirement fund and can save you money on management fees. Read on for some frequently asked questions on SMSFs.

What is a Self Managed Super Fund?
An SMSF is a super investment fund set up and managed by its members. They allow people to make their own investment decisions for their retirement.

How do I set up an SMSF?
When you set up an SMSF you become a trustee of the fund. A trustee is responsible for managing the fund and acting in the best interest of its members. SMSFs must be set up in accordance with the law and you must report to the Australian Taxation Office on its operation.

What is the minimum balance needed to start an SMSF?
The absolute minimum required is $50,000. Most financial advisers will suggest that you invest at least $100,000 and the ATO recommend $200,000. Most SMSFs start off with between $50,000 and $100,000.

At what rate are SMSFs taxed?
The income generated by your SMSF is taxed at a general concessional rate of 15%. Your fund must be a complying fund that follows all the laws and rules in order to be entitled to this rate.

What records and reports do I need to keep?
When setting up a SMSF you have a number of administrative obligations. This includes arranging audits for your fund's accounts and reporting to the ATO.