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Welcome to our site.
JOHN BOON
ACCOUNTANT AND TAXATION ---- SELF-HELP ACCOUNTING.

DIY Super

Since 2007 when the new Simpler Super rules came into force, there has been an explosion of Self-Managed Super Funds (SMSF). Why? Because it provides a safe haven for those who have larger investments and are approaching retirement age.

The main advantage is that earnings in the fund are taxed at only 15% regardless of how much an individual is otherwise earning.

Secondly, there is no tax on income or lump sums drawn down from the fund by those aged 60 and over.

Thirdly, there are various strategies to ensure that money can be accumulated in the fund, at the same time as drawing down a pension.

Fourthly, SMSF linked to an SMSF Will can be used for estate planning purposes to pass on money to one's children and grandchildren after death. However the Trustee has virtually complete control over the Fund, and this can cause conflict among the surviving beneficiaries.

The main disadvantage with an SMSF is that it normally costs about $1500 in Accounting / Audit fees annually to ensure the Super Fund meets its compliance.

Secondly, the setup fees can be costly. There has to be a legal
SMSF Deed, and maybe a SMSF Will, and a dedicated SMSF Corporate Trustee established, to gain maximum benefit from the SMSF.

Thirdly, the Trustee has various obligations which are onerous and unavoidable.

It is not surprising that those who have less than $100,000 in investments tend to choose an Industry (or Retail) Super Fund for their investments.


 

Start here
No Bullshit
Individual Tax
Fixed Fee
DIY Super
Outsource
Horse Riding
Save $$
Resume
Willowie Game Park ABN 75272874765 -- 273 Two Peoples Bay Road Albany WA 6330 - Ph/Fax: 08 98464365 Mob: 0407431778 Email: johnboon@westnet.com.au