Superannuation funds are used in Australia as a means of investing tax efficiently for retirement.
Self Managed Superannuation Funds – or SMSFs – are increasingly being used by those who wish to be more involved in the investment decisions affecting their retirement, and who do not want to leave such matters in the hands of retail funds.
SMSFs also frequently have a role to play in the administration of the transfer of pension benefits to Australia from the UK.
Advantages of a SMSF
- The ability to hold UK£ denominated investments. This is of particular interest to migrants from the UK or returning Australians who are considering the transfer of overseas pension scheme benefits to Australia while the £ remains relatively weak against the A$
- The ability to acquire commercial premises: SMSFs are frequently used by business owners to acquire premises from which their business is to be carried on
- A wider choice of investment options
- Can be cheaper to administer than the alternatives – eg retail funds
Disadvantages of a SMSF
- A step up in the level of compliance required of the trustees of the SMSF – who are typically the same persons as the members. This can be mitigated with the support of competent professional advisors
- Relatively higher costs as a proportion of the fund balance where the balance is small: annual obligations include the need for the preparation of accounts – which need to be audited – and a tax return for submission to the Australian Taxation Office
If a SMSF is of interest we recommend that you obtain professional advice prior to setting it up.
bdh Tax can assist with the setting up of an SMSF for you, as well as ongoing support, including:
- Obtaining a Tax File Number and an Australian Business Number for the Fund from the Australian Taxation Office
- Preparing the annual accounts of the SMSF
- Arranging for the accounts to be audited by an independent auditor
- Preparing the tax return of the SMSF for submission to the Australian Taxation Office
For those who require assistance with the transfer of pension benefits from the UK to Australia – which is likely to include consideration of the establishment of a Self Managed Superannuation Fund – our colleagues at bdhSterling can help with a review of your existing UK pension arrangements, with a view to advising on the possible transfer of your UK pension fund benefits to an Australian superannuation fund.
- Establishing a Self Managed Superannuation Fund that will meet HM Revenue & Customs requirements in the UK – ie obtaining Recognised Overseas Pension Scheme status for the SMSF when pension benefits have accrued in the UK and are to be transferred to Australia
- Advising regarding the investment of monies held within the SMSF, which can be denominated in GBPs, as mentioned above
Whenever possible bdh Tax provides a fixed fee quote to all who are interested in engaging our services.
If you want to discuss setting up a Self Managed Superannuation Fund in Australia please don’t hesitate to contact us by completing the enquiry form on this page, or by telephoning your nearest bdh Tax office.
We look forward to hearing from you.