SMSFs are a trendy alternative to regular superannuation funds. The main motivations for starting up these DIY funds incorporate greater control and flexibility to invest in specific assets. These are customised wealth creation and succession channels that can give tax-effective income streams to people at retirement age.
They have a low tax rate of 15 per cent, giving strong tax incentives to investors and business owners needing to take a more aggressive role in preparing for retirement. While the setup of your SMSF can be quite easy, meeting ongoing compliance and legal responsibilities needs significant knowledge and professional superannuation advice in Australia.