The merits of a self-managed superannuation fund (SMSF) are redoubtable. Not for nothing has it earned a name for itself. The kind of control it can offer you over your investments and the range of assets it allows you to invest in is laudable. This said, there are minuses, too.
For instance, there is no point getting yourself an SMSF until you have something like $200,000 in the kitty. Add to it the running costs of the fund — nothing short of $1,000 to $1,500 annually. Leaving aside the debate over merits and demerits, let us discuss the protocols of setting up a self-managed super fund.
Owners of small businesses contribute to their employees’ super fund to gain tax rebates. The strategy works pretty fine during the end of a given financial year. However, if not applied diligently, the strategy may not solve its intended purpose.
Statistics compiled by the Australian Taxation Office (ATO) confirm that investors are missing out on claiming a couple of very significant depreciation deductions. I am talking about the capital works deduction and the plants and equipment deduction here.
In an article for the website Investor Daily, Miranda Brownlee suggests that the really flashy super funds which propose expensive features and services do nothing to make life better for their members.
