Many people establish their own superannuation fund as it gives them greater flexibility and control over how their superannuation is managed. In most cases the members will also be the trustees of the fund or directors of the trustee company, thus giving the members actual control over the activities of the fund. This is the great attraction to establishing your own superannuation fund. You choose where and how your superannuation is invested. For business owners, it gives them the flexibility to invest their superannuation in assets that add value to their business such as commercial property.
Superannuation also enjoys significant tax breaks. For a complying SMSF the maximum rate of tax is 15%, however many funds can pay ZERO tax on their earnings and income streams to members of the fund with the appropriate advice and expertly crafted strategies.
SMSF’s are very attractive vehicles for many business owners which can be easily inserted into their overall wealth management strategy.
- Arranging the setup of a SMSF including funds deed, company incorporation and relevant minutes, forms and trustee declarations
- Attending to all registrations including ASIC, ABN, TFN and complying SMSF status
- Strategic advice to incorporate a SMSF as a vital and effective part of a family’s overall wealth management, tax minimisation and succession strategy
- We have relationships with trusted actuaries, legal practitioners and financial advisors to assist in ensuring that each clients’ unique personal goals and circumstances are optimally structured and regularly reviewed
- Providing ongoing administration of your fund to ensure compliance and expert assistance to navigate through the ever changing and complex myriad of acts, regulations, ATO opinions and legal precedents which intertwine to govern the existence of each SMSF
- Assisting with the appropriate documentation, advice and analysis in relation to the establishment of ‘transition to retirement pensions’ (where a member is still working and aged less than 65 years) and ‘account based pensions’ (where a member is aged over 55 and retired or aged over 65 years), to provide fund members with a tax effective and in many cases a TAX FREE retirement income stream
- Advice in relation to Limited Recourse Borrowing Arrangements (LRBA), which since 2007 have enabled SMSF’s to purchase residential and commercial property within the superannuation environment with the use of borrowed funds. We can assist with analysing the appropriateness of the legal and tax structure, liaising with financiers while also providing the ongoing administration of the arrangement to ensure compliance of the fund
A selection of strategies that our expert team at i2 advisory can provide assistance with includes:
- Ownership of a family’s business premises (‘Business Real Property’) within a family controlled SMSF. Rather than paying rent to someone else, your business can pay rent to your self-managed fund
- Succession planning (see below)
- Use of pensions to provide for effective management of capital gains tax on sale of assets
- Use of ‘Limited Recourse Borrowing Arrangements (LRBA)’ to purchase residential and commercial property within a superannuation environment. Borrowings can be sourced via tradition lenders, but can also be sourced from within a family’s already existing structure.
- Analysis of options to help maximise Centrelink entitlements including age pension
Succession Planning Strategies
- Were appropriate we work with legal professionals and financial advisors to ensure that reversionary pensions, death nominations and wills are in place to help facilitate a client’s wishes after death
- Re-contributions strategies to provide clients with tax free pensions on retirement and to reduce the ‘taxable’ component of a members fund balance to assist with minimising ‘death taxes’ on a members death