Self-managed super annuation funds
Self-managed super annuation funds are the perfect way to secure your retirement. Now you do not need to worry about financial crisis when you are about to retire. These self-managed super funds have been recently very popular specially in Australia. The difference between regular funds and the self-managed super annuation funds is that participants of the self-managed super annuation funds are also the trustees of this fund.
Changes to the self-managed super annuation funds by the Australian Government
In the years 2016-2017, the Australian government announced some changes to these self-managed super annuation fund budget. These changes were meant to make these self-managed super annuation funds more flexible, much better and much reliable than they were before.
It is important to look in to what changes were exactly made so that if you ever decide to become a member of these self-managed super annuation funds you know how to deal with them. Some of the changes made were as follows:
- Individual spouse’s were relieved from the payment of some of the taxes. There was also the announcement of an increase in the income of individual spouses before an individual stops.
- The removal of payment to the eligible one’s incase of death were removed. This is known as the anti-detriment provision. The self-managed super annuation funds were able to claim for the tax deductions.
- The super guarantee rate was announced to be supposedly increase till twelve percent in 2025.
You should know the basics about self-managed super annuation fund in order to make the self-managed super fund. There are some requirements of the fund which are also known as the do it yourself super fund. Some of them are:
- There can be a maximum of four members in each of the self-managed super fund and not more than that.
- For security and trust, each and every member of the self-managed super fund must be the trustee of this fund and all of the trustees must be participants of the fund.
- There is no payment or salary for the members who perform the role of the trustees. It is not a paid job.
- The members in a self-managed super fund can work in one fund at a time. None of the members can be employed to work for other self-managed super funds except if they are relatives or from the same family.
All these points must be kept in mind when setting up a self-managed super fund. The basic reason of setting up a self-managed super fund is to have control on your savings and not spend it unnecessarily. You can always use this money for investment in a new project and for further information read about self-managed super fund’s investment. It will help you for sure when deciding about investing your money.
Self-managed super funds do not come only with how to save up for your retirement. It also helps in getting the tax benefits. For full information and guide we would advise you to look in the self-managed super funds guide to get the complete information about it. Visit this site for more information : Smsfselfmanagedsuperfund.com.au
Category: Funds Management