Self-Managed Super Fund Roadmap Overview

1. Roadmap - Overview
Self-Managed
Super Fund (SMSF)

2. Disclaimer
All material of whatsoever nature contained in or provided in
connection with any SuperBenefit presentation, and in particular,
with regard to today’s presentation, is for education and general
information purposes only, and does not constitute advice,
personal or otherwise.
SuperBenefit education and general information is provided on
the strict basis that you
• do not act solely because of anything contained in or
associated with this presentation and, if you do wish to act,
that you first
• seek alternative independent advice where all your
individual objectives and needs are professionally
considered before you make any decisions, financial or
otherwise.

3. Presenter: Paul Humphreys
Administration Manager
SuperBenefit Program
M.Biotec, Bsc (Hons)
Self-Managed Superannuation Funds
(SMSF) – What is involved
1) Generally?
1 What is SMSF?
2 Pros & Cons
3 How to Set Up and Run
4 Investment Options in SMSF

4. Superannuation Overview
• Super is a long term savings arrangement in preparation for retirement
• Part of the government’s plan to ensure adequate retirement income
• Employers, self-employed, employees and family members (on
behalf of others) contribute to a super fund
• Contributions can be made to either (You have Choice of Fund)
– Independent large super funds - retail, industry, bank and financial
institutions (APRA – Australian Prudential Regulatory Authority)
– Retirement Savings Accounts (RSA) banks, institutions (rare)
– Self managed super fund (SMSF) you manage it (ATO –
Australian Tax Office)
• Self Managed Superannuation Funds also known as
– SMSF’s
– DIY Funds.
1 What is a SMSF?

5. SMSF Statistics
ATO Statistics June 2014
– 534,000+ SMSF’s in Australia
– 1,011,000+ members
– $540+ billion in SMSFs (Total Aust & Overseas assets)
– Number of Members per fund
• 70% have 2
• 23% have 1
• 4% have 3
• 3% have 4
– Member Demographic
• 26% >64
• 32% 55-64 Years Old
• 24% 45-54
• 13% 35-44 and is the fastest growing group of new entrants (ATO)
• 5% 34 and under
– Member Income
• 42% <$40,000
• 32% $40,000 to $100,000
• 25% $100,000 plus
Source - https://www.ato.gov.au/Super/Self-managed-super-funds/In-
detail/Statistics/Quarterly-reports/Self-managed-super-fund-statistical-report---
June-2014/?page=2
1 What is a SMSF?

6. Self-Managed Super Fund
Bank Account
Cash, Shares, Managed Funds,
Property
As Members
As Trustees
Participants in a SMSF have 2 roles
… as a Trustee, and as a Member
Admin,
Tax Return, Audit
1 What is a SMSF?

7. SMSF Law (Details) /Structure
Created under the SIS Act and Regulations
– Superannuation Industry (Supervision) Act 1993 (also SISA)
– SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994
• Multiple member SMSF
– 2- 4 members
• Single member SMSF – 2 possibilities
– 2 trustees (you and one other non employee)
– Or have a Corporate trustee with you as sole director
NO member can be an employee of another (unless family)
NO Trustee can be paid for services.
Sole Purpose Test is a core compliance feature
1 What is a SMSF?

8. SMSF Pros
– Control over investments
– Flexibility of investment timing
– Choice of investment spread
– Protection from bankruptcy and other legal claims (most cases)
– Low-tax saving environment
eg Dividend $100 Franked you receive (ie Company Tax of 30% paid)
eg $142 less 30% Co. Means Tax paid is ($42) Leaves $100 to you (rounded)
at tax time means (rounded)-
Life Stage Outside SMSF (your MTRate) Inside SMSF (15% tax)
Work, MTR 30% pay no extra tax > $nil extra credit 15% > $21 back
Work, MTR 45% pay 15% tax > $21 pay credit 15% > $21 back
Pension 0% (over 60) may affect aged pension, ?% credit 30% $42 back, Tax 0%.
2 Pros & Cons

9. SMSF Cons
– Responsibility – Penalties: 46.5% tax, fines for non-
compliance
– Administration involved is large
– Your suitability to manage investments
– Complaints – no access to Super Complaints
Tribunal
– Commitment and work involved
– Need to seek assistance with investment knowledge
and compliance.
2 Pros & Cons

10. SMSF Set-up and Start and Run
Step by Step: (Sections form SIS Act and Regulations)
1. Preparation
1. Consider options
2. Trustee Type and Eligibility
3. Member numbers – single, multiple
4. Trust Deed, order/have written
2. Start the SMSF
1. Commence the SMSF by executing the Trust Deed
2. ABN, TFN, Regulation by ATO
3. ATO Trustee Declarations
4. Bank Account
5. Insurance
6. Employer contribute super to your SMSF bank
7. Roll-in monies
8. Investment strategy decided and written.
3 How to Set-up and Run

11. SMSF Set-up and Start and Run
Step by Step continued…
3. Operate SMSF
1. Manage contributions, roll-ins from Super Funds and Personal
2. Invest monies
3. Insurance Requirements paid
4. Record keeping, mail, banking
5. (When later eligible) Pensions (benefits) min. payment,
6. Further Compliance tasks,
7. Annual return, audit at year end.
3 How to Set-up and Run

12. Investment Rules
• Ensure Fund-Ownership of assets is secure (preference in
trustee name (individual(s) or corporate name)
• Invest following the written Investment Strategy
• Cannot lend money or financially help others or members
• Cannot buy assets from members or related members or
entities such as residential property(except shares and
securities at market value, business real property)
• Must be no charge over any assets in the fund (recourse)
• Meet Sole Purpose Test – Decisions that will provide for
retirement.
4 Investment Options for SMSF

13. Investment Choices
SMSFs can invest in various asset classes including:
• Shares, Options, CFD’s ,Covered Call Options
• Property – Residential and Commercial
• Managed Funds
• Term Deposits and Cash
• Government Bonds
• Exotic Assets (with a proviso***) such as:
• Art and Collectables
• Cars, Wine
• Antiques, Jewellery
***Main issue is you cannot USE/Enjoy them YET –
breaks the Sole Purpose Test and is a breach of the SIS Act .
4 Investment Options for SMSF

14. Strategy Structure Support
Become Quality
Controller of
Your
Super’s Future
Self-Managed
Superannuation
(Family) Fund
SuperBenefit
Quality-Service
Overlay
“Quality” Outcomes
require a
Total-Quality Discipline
Definition of “Quality”: “Befits Intended Purpose”
Quality Quality Quality
It’ all about “Quality”
“Quality
”

15. SuperBenefit Quality-Service Programme
... when interlocked with a self-managed super fund
SuperBenefit
Self-Managed
Superannuation
Fund
b
As M em bers
Strategy Workshops
“Understan ding Through Learning”
Estate Planning
Retirement Planning
Tax Planning (etc)
“Sharemarket-Savvy”
Educ ation & Training
”Coaching” Coordinator
Administrator
Education Coordinator
SUPER
ADMIN
SERVICE
Solicitor
(Fund Trust Deed
& Other “Legals”)
As Trustee s
Tax
Accountant
Audit
Accountant
All Fund Administration and
Truste e Compliance
Servicing Including:
Establishing a nd Maintaining
(1) Member & Fund A/cs
(2) Trus tee Minutes
(3) Buying, Se lling and/or
Lodgement of M anaged
& Direct Investme nts, and
(4) All other Fund/Trustee
Administration S ervicing
Seminars, W orkshops and
O ne-on-One Mentoring,
a nd Coaching
Investment Empowering
Managed Fund
e g Asian Shares
(C MA)
SuperBenefit
Qualifying
Shares
Cash
“Assisted” &
“Mentored”

16. Administrator Manager
and
Sharemarket Investment Coach

17. Have questions?
SuperBenefit works with SMSF trustees to
CONNECT them with the advisors they need.
A call is Free.
Our Broker will Sort and organise all the 2000 stocks on the ASX for our clients
And supply the share list and recommendations
Property experts assist with investment choice based on thorough research to reduce risk.
If you have any questions, why not give us a call – it’s FREE!
No obligation. 0407 361 596, Paul.
Get our FREE Expert Guide – Self-Managed Super and You – it has all the info you need to know,
with bonus TIPS and CHECKLISTS to determine if SMSF is for you and what steps are needed to
set up. It also gives you ALL the Aust Tax Office publications about SMSF.
Get you copy now – click “Free Download” top right hand side on our website. You’ll also get
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