Smsf Loans
What is a Self-Managed Super Fund?
A Self-Managed Super Fund (SMSF) is a superannuation fund designed for members to have direct control over their retirement savings and investments. It differs from a normal super fund because all of the members act as trustees, with the authority to make the day-to-day decisions about how the fund operates and how to invest, subject to the superannuation laws. Trustees are also responsible for the overall investment strategy and all legal and statutory requirements.
“If you set up an SMSF you become a trustee of the fund. This means you’ll be responsible for managing your SMSF according to its trust deed and the laws and rules that apply to SMSFs. The key principle is that you run your SMSF for the sole purpose of providing retirement benefits to fund members.” – ATO
“If you set up an SMSF you become a trustee of the fund. This means you’ll be responsible for managing your SMSF according to its trust deed and the laws and rules that apply to SMSFs. The key principle is that you run your SMSF for the sole purpose of providing retirement benefits to fund members.” – ATO
How does an SMSF work?
An SMSF can have up to four members, all of whom are trustees of the Fund. As trustees, each member is personally liable for all decisions made by the fund. Unlike public offer funds (industry or retail funds), SMSFs are regulated by the Australian Taxation Office (ATO) rather than the Australian Prudential Regulation Authority (APRA). Trustees must comply with both the superannuation law and the SMSF governing rules or potentially face significant penalties.
The ATO has some excellent educative resources for SMSF Trustees here.
The ATO has some excellent educative resources for SMSF Trustees here.
