Information about Investing with a Self Managed Super Fund (SMSF)

Using super to buy property, the property itself becomes part of your super fund.  This means your employer contributes the minimum 9.5% of every pay cheque towards your investment. 

Buying property through your SMSF means there are a number of parties contributing to you achieving a better retirement: 

  • you
  • your tenant
  • your employer
  • the government (tax refunds)




Did you know that SMSFs remain the fastest growing sector in the retirement funds industry, coming ahead of retail funds, industry funds, public sector funds and corporate super funds?


So why is this the case? Well there are 5 Key Benefits to having a Self-Managed Super Fund, namely:

1. Greater Control 

Investors who saw their retirement funds shrink during the GFC are looking for greater control. SMSFs typically allow members to:

  • have greater control over the types of investments
  • control the fees being paid
  • optimise their tax liabilities
2. Greater Flexibility 

SMSFs allow members to have a greater degree of flexibility, members can personally tailor their SMSF strategy to fit their overall financial goals and match other investments. Some examples include small businesses leasing commercial property from their SMSF funds or SMSF members using SMSF funds to purchase investment property. You can even purchase an NRAS property in your SMSF.

3. Cost Advantages 

While probably not a driving factor as compelling as flexibility and tax advantages, costs of running SMSFs are generally much lower. Cost effectiveness will improve as the fund balance increases and assets can be directed toward strategic investment opportunities.

4. Tax Benefits 

The lower tax rate of 15% in Superannuation is far more attractive than paying 30% or more as a Pay As You Go investor.

Furthermore, a maximum of 10% tax applies to earnings during the Accumulation Phase and there’s no tax in the Pension Phase. This means that if you own an investment property in your SMSF and sell during the Pension Phase - you pay no capital gains tax.

5. Support for SMSF Trustees 

It’s a legal requirement that SMSFs be audited every financial year. A professional SMSF audit helps members ensure that they’re meeting compliance and reporting requirements. SMSF professionals can give help in the following areas:
  • Establishment, operation, structuring and valuation
  • Investment strategies
  • Ongoing administration and compliance

For more information on how to set up your own SMSF or to learn more about purchasing property in your SMSF simply Contact Us and our expert partners can show you how you can achieve your financial goals.




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