Self Managed Super Funds Superannuation – the second largest asset most Australian’s will own in their lifetime, aside from their home. We find that savvy investors and business owners often have a great desire to manage their superannuation themselves. They take great pride in creating wealth for retirement based on their own choice of investments and advisors. At Raw Chartered Accountants, we work with you to protect and grow your super. We work collaboratively with you and your advisors including financial planner and estate planner to ensure a consistent focus on key strategies. SMSF Financial Statements & Annual Return Our range of SMSF compliance services includes: Preparation of Financial Statements and arranging external audit Preparation & lodgement of the fund’s tax return and regulatory form annually Arranging actuarial certificate for proportion of fund’s income taxable (where required) Preparing minutes for meetings of trustees Our fee for this service is estimated each year for you in our engagement letter. Superannuation Advice From time to time you will need advice in relation to super. We are always available to our clients to assist with any super advice you need, so you can make informed decisions quickly and get on with business. Our range of SMSF advisory services includes: Advice on and establishment of an SMSF Growth Planning – maximising contribution strategies Tax Strategies – ensuring tax effective strategies to grow your super Withdrawals – commencing income stream pensions streams & taking lump sums Advice regarding windup of an SMSF Liaison – regular liaison with your financial planners & estate planners to share strategies and optimise outcomes From 1 July 2016 many super advisory services must be delivered to you in a Financial Plan or Statement of Advice under new regulatory requirements. This formal issue of advice is to ensure you have been advised in a holistic way about the relevant considerations and your options. Our fee for these services is based on our standard hourly rates. Frequently asked questions: Are you licenced to Advise? The advice accountants are legally allowed to give has always been limited. As of 1 July 2016 accountants must hold a licence in order to continue to provide advice on superannuation and SMSF’s. Raw Chartered Accountants holds a licence to provide advice on superannuation with Capstone Financial. Is an SMSF right for you? With a Self Managed Super Fund you do become more conscious of the value of this asset, and more proactive about ensuring its safety and growth. However, an SMSF is not for everyone. The best of intentions, drive and desire to manage an SMSF isn’t enough. Poor investment choices, not being involved enough to monitor investments or breaking the SMSF rules can result in very costly lessons learned. There is a lot more responsibility and “the buck stops with you”, as the trustee. Choosing advisors Your team of advisors all have an important role to play to help you as the trustees as you work to protect and grow your super. Choose advisors who put your goals and needs at the forefront of all they do as well as demonstrate professional excellence & expertise. Other than your accountant, other advisors you will need for your SMSF include: A financial planner to help select, monitor and manage your investments An insurance advisor to help select and review your life, income and property policies A mortgage broker if you are borrowing in super A lawyer to ensure your estate planning matters are attended to We have a group of key advisors who we often work closely with & are happy to refer you to. As with any advisor, its important to decide if the fit is right & we recommend seeing a few so you can find the people best for you. Borrowing in super It is now possible to borrow within your super fund to make investments, and it can be a very effective strategy to acquire larger investments with lower equity invested. Commonly the investment is property however this strategy can be used to acquire shares or managed funds as well. The establishment costs are not insignificant, mostly being bank application and bank legal fees. The amount that can be borrowed varies depending on the investment; however we are seeing the banks’ current lending criteria to be a loan to value ratio of maximum 60%. An example – borrowing to buy a commercial business premises Bob and Jan have a business and are currently renting premises for their business. They want to buy their own business premises and would like to use their SMSF to do so. They have $300,000 available in their SMSF towards the purchase of a commercial property. Based on a 60% loan to value ratio, they could borrow $450,000 towards the purchase of a commercial property valued at $750,000. The SMSF then becomes the landlord and the business pays rent to the SMSF which funds the property ownership costs including loan repayments. The surplus earnings and capital growth in the asset helps grow Bob & Jan’s super. Disclaimer: The above is a brief example strategy only. With any strategy there are complexities to be considered. We recommend seeking advice before proceeding with any investment to ensure it is right for you.