What are the Advantages of SMSF Tax Return?

A Self Managed Super Fund (SMSF) is a form of superannuation trust which provides monetary benefits upon retirement or death to its members. SMSF members are also the trustees of the fund and this is what makes it unique from other super funds. It provides a great level of control to its trustees when it comes to customizing the funds as per their needs. 

When we talk about the trustee who is a controller of the funds, there are two trustee structure options. The first one being a corporate trustee in which a company is a trustee and each member act as a director. The other one is the Individual trustee in which each member is a trustee with a minimum of two trustees required. 

People who are engaged with their retirement planning, prefer SMSF the most because of their benefits. Here we will discuss those robust benefits of SMSF.
 
Multiple Investment Choices
 

SMSF gives complete control over the funds to its trustee and provides an array of investment options from commercial property, residential property, direct shares, term deposits, unlisted assets to collectible to many more. 

So, SMSF provides access to a wide range of investment opportunities. Also, the decision to when buy or sell investments lies in your hands. Besides, SMSF allows its members to borrow funds to acquire a property.
 
Relatively Low Tax
 

With a 15% tax rate, SMSF comprises one of the lowest tax rates. Moreover, by offsetting other tax credits, this tax rate may also decline further. The best part is that there is no tax payable on retirement or in pension phase. 

Using some well-framed strategies you can reduce tax payments as you move towards your retirement. AS you proceed from accumulation to retirement phase, SMSF makes the process simpler for you and you don’t need to sell your assets which might incur various taxes.
 
Protecting Assets
 

One of the biggest benefits of SMSF for those who are concerned for the protection of their asset is that it protects the assets of its members from creditors in unfortunate events like bankruptcy and litigation. So, you can fortify your assets with SMSF.
 
Cost Saving
 

The cost of an SMSF is lower than many other super funds options. The trustees of SMSF need to pay ATO fees and they must lodge annual income tax returns. It becomes more cost effective as it grows. However, the total cost depends on related investment. 

In addition, SMSF enables you to choose your professional team for pieces of advice and also the control over how you will pay them for their advice resides with you. You may also pay their fees through SMSF funds. You may also switch investment advisers.
 
Combining the flexibility and above-stated benefits of SMSF makes it the ideal superannuation choice for those who plan their retirement savings today!