A self-managed super fund (SMSF) is a pension structure that offers retirement benefits to its members. The main difference between SMSF and other super funds is that SMSF members are also the trustees of the fund.
The SMSF can have from one to four members and one of the main benefits is the control over the trustee in tailoring the funds to their individual needs. You can find information regarding smsf tax return via https://www.rwkaccountancy.com.au/services/smsf/.
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How does SMSF work?
SMSF was created solely to provide financial benefits to retirees and their beneficiaries in the event of death. They have a Tax Number (TFN), an Australian Business Number (ABN), and a transactional bank account that allows them to receive contributions and contributions, make investments, and pay lump sums and pensions.
There are two options for the trust structure:
Company Director – The company acts as a trustee and each member is a director. This structure allows for easier collection and registration of assets and offers administrative efficiency and flexibility in membership.
Individual Guardian – Each member is appointed as a guardian, with a minimum of two guardians required.
As the trustee of SMSF, you are responsible for investment decisions and the implementation of your fund's investment strategy. SMSF also has strict administrative obligations that require you to keep records, present financial statements, complete tax returns, and perform independent audits.