What is Self -Managed Superannuation?
Superannuation is a long-term savings method designed to provide enough money for people to lead the lifestyle of their choice in retirement. Australia has an ageing population which is creating an ever-increasing need for Australians to fund their own retirement. Therefore the Federal government has structured superannuation as a tax-effective method to encourage Australians to save more for retirement.
A self-managed super fund (SMSF) is a superannuation fund which has less than five members and is basically managed and controlled by its members. The members are required to be trustees of the fund or directors of a company which is the trustee of the fund. Given that the members and the trustees of the SMSF are effectively the same people, a SMSF enables a more direct involvement in the day-to-day activities and operation of the fund including investment decisions, accepting contributions, paying superannuation benefits to members, administration of the fund, and compliance with the law. SMSFs are governed by a trust deed (a legal document) and the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act), and are regulated by the Australian Taxation Office.