November 16, 2020

What Is SMSF Administration?

Rather than going through one of the superannuation funds on the market, Australia’s have an option to open up their own self managed super fund. This can be a great option for taking control of retirement savings and making your own investment choices and this is where you might want to look into SMSF administration providers.

What is it?

An SMSF administration company is basically a third party service that offers a number of services to help Australian’s manage their self managed super funds. This can make it much less time consuming and stressful.

What do they do?

accountant taking care of the SMSF administration of a client

SMSF administration companies help self-managed super fund trustees with a number of tasks such as establishing their funds, managing compliance, helping with investments and managing tax and auditing. Self managed funds are quite complicated and must be set up in the correct way, otherwise trustees will not be able to make contributions or won’t receive the correct concessions. An SMSF administration company knows how to get things up and running for trustees and knows about all the rules and regulations that impact self-managed super funds. They understand for instance that establishing a fund requires a trust deed, trustee declaration, assets and an ABN. They can also advise trustees of any potential compliance issues and will help make sure that the fund is fully compliant. They may also prepare accounts and help trustees decide on what to invest in.

Why do I need one?

An SMSF administration company can help make your life much simpler. A self managed super fund can be a great way to increase your retirement savings and make the most of investing your hard-earned savings but it can be time-consuming to manage and complex to navigate. Employing a professional service to manage the behind the scenes stuff will help you to gain more control while avoiding having to spend ages learning about how to run every aspect of it yourself. Having a professional service engaged will also help you to avoid common pitfalls or accidentally becoming non-compliant. No one wants to be told they have done something to become non-compliant as the penalties from the ATO can be severe. An SMSF administration company can help to make sure your interests are protected.

For busy people having a professional service look after the management of there fund can save them time and money and ensure that the correct reporting is all looked after. This will give you peace of mind and make it simpler to keep an eye on how things are progressing with your investments.

Do they have to look after everything?

Many companies provide a full range of services and are capable of looking after everything from set up to wind up but if you’re happy to manage a few things on your own many providers will allow you to pick and choose what you need. It’s common for a lot of trustees to get help with the initial set up of their fund whilst others may need help if they decide to wind up their fund. Others may simply ask them to prepare annual reports for the ATO whilst some people require more extensive advice and management.

Before contacting a company to help you, consider what your needs and what kind of management your fund requires. It’s a good idea to sit down with companies to discuss your needs, find out about costs and decide if they are a good fit for you. Most will offer a free, no obligation initial discussion to talk about your self managed super fund plans.

About Gene Sullivan