First Super SMSF Fact Sheet_Final_Aug2015
WHAT IS AN SMSF?
An SMSF is a private super fund you manage yourself,
regulated by the Australian Taxation Of˜ce (ATO).
SMSFs are different from mainstream funds regulated by
the Australian Prudential Regulation Authority (APRA) which
pool members™ savings and invest the money for them.
SMSFs can have up to four members. All members must
be Trustees (or Directors if there is a Corporate Trustee)
and are responsible for decisions made about the fund.
If you have an SMSF, you are responsible for managing
it and complying with all relevant laws.
WHAT ARE YOUR OBLIGATIONS IN RUNNING AN SMSF?
If you set up an SMSF you must develop and maintain an
investment strategy, and manage all contributions and
withdrawals.
You must also comply with:
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superannuation and tax laws, including making sure the
money is only used for retirement bene˜ts;
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record keeping obligations, such as lodging annual
statements;
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reporting obligations including reporting contributions; and
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audit requirements, including having the fund audited
by an approved SMSF auditor each year.
WHAT YOU SHOULD BE AWARE OF:
Costs
There are signi˜cant costs in both setting up and
administrating a SMSF. These include the cost of investing,
accounting and auditing for your SMSF, which may be much
higher than what you are currently paying. These costs will
cut into your retirement savings.
Problem
Your APRA-regulated fund
SMSF
Compensation
APRA-regulated funds are eligible for
compensation where they suffer loss as a
result of fraud or theft.
SMSFs are not eligible for compensation if
they suffer loss as a result of fraud or theft.
Complaints
APRA-regulated funds must address
member complaints. Where complaints
are not resolved members must be
offered access to a free and independent
complaints resolution service such as the
Superannuation Complaints Tribunal.
SMSF trustees/members must resolve
their own complaints. This may require
costly legal assistance. SMSF trustees/
members do not have access to the
Superannuation Complaints Tribunal.
Licensing
The Trustee of an APRA-regulated fund
must be registered or licensed by APRA.
APRA funds are subject to a substantial
prudential regime.
SMSFs are subject to a less onerous
prudential regime. SMSFs are subject to
compliance-based regulation by the ATO.
S ource: ASIC Money smart
WHAT IF SOMETHING GOES WRONG?
As a member of First Super, your super fund is regulated by APRA. If something does go wrong, APRA has important
protections in place to address the matter. Many of the solutions below will not be available to you if you have an SMSF.
SHOULD I SET UP A SELF˜MANAGED
SUPER FUND (SMSF)?
SHOULD I SET UP A SELF˜MANAGED SUPER FUND(SMSF)? FACT SHEET˚ PAGE2
QUESTIONS TO ASK YOURSELF BEFORE YOU SET UP
AN SMSF
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Do I fully understand all the legal responsibilities I am
taking on as Trustee?
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Do I have the time, expertise and motivation to actively
manage my super?
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Am I con˜dent I can do better than professional
investment managers through my investment strategy?
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Do I have enough money to make it worthwhile, given
fees and expenses such as accounting, legal, audit or
tax advice?
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If something goes wrong, am I satis˜ed with the lower
levels of protection that apply to SMSFs, compared to
APRA-regulated super funds?
If you™ve answered ‚no™ to any of these questions, you may
not be ready to set up an SMSF.
Before making any investment decision, we recommend
that you seek quali˜ed ˜nancial advice.
WANT TO KNOW MORE?
WE™RE HERE TO HELP.
Please contact our Service Centre today.
Call
1300 360 988
mail
@
firstsuper.com.au
Website
firstsuper.com.au
PUTTING MEMBERS FIRST
Important information:
The material contained in this bulletin is accurate and reliable as at August 2015.
This information is of a general nature only and does not take into account your personal circumstances
or situation. We recommend that you seek quali˜ed ˜nancial advice before making any investment decision.
The bulletin is provided by First Super Pty Ltd ABN 42 053 498 472, AFSL No. 223988, as the Trustee of
First Super ABN 56 286 625 181. If you intend to invest in or continue to hold this product you should obtain
and consider a copy of the Product Disclosure Statement which is available by phoning 1300 360 988.
First Super Pty Ltd
ABN 42 053 498 472
AFS Licence No: 223988
RSE Licence No: L0003049
First Super Pty Ltd as Trustee
of First Super ABN 56 286 625 181