SMSFs (self-managed super funds) are also called "Do It Yourself" (DIY) super funds. Like other pension funds, SMSFs invest the contributions paid by members, offer benefits to members when they retire, and to provide death benefits to beneficiaries in case of death of a member.
The main distinction between an SMSF and different types of pension funds is that members of an SMSF are also the trustees or directors of a corporate trustee. You can also look for an SMSF tax return via https://www.rwkaccountancy.com.au/smsf/.
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This means that they are required to prepare and implement an investment technique for their funds, accept contributions, and manage the payment of benefits.
SMSFs also offer a wider investment choice than other super funds, with options such as direct property, managed investments, and direct actions included. The members of an SMSF should appoint approved auditors and may also decide to involve tax agents, accountants, and financial advisors and administrators.
WHAT ARE THE REQUIREMENTS OF SMSF?
1. An SMSF must be maintained for the sole purpose of providing retirement benefits to members. Investments must be made to achieve a commercial rate of return, not lifestyle or for private purposes.
2. An SMSF must have fewer than five members.
3. All members must be trustees.
4. If your SMSF is a single member fund, you will need to appoint a trustee company or a second person to act as an individual trustee.