[elementor-template id="418"]
  • Superannuation

Types of Superannuation

Types of Superannuation

Public offer funds 

are open to the public and run by financial institutions. They allow a large volume of people and/or companies to operate their super arrangements as a single group.

Self-Managed Superannuation Funds

allows a person to control their own super investments for their retirement whilst running their SMSF in accordance with the law and reporting to the ATO on its operation

Industry funds 

are open to people working in a particular industry or under a particular industrial award, although some industry funds are ‘public offer’ and allow anyone to join.

Employer or Corporate funds 

are open to people working for a particular employer or company and are usually tailored to meet the requirements of the particular company and its employees.

Self-Managed Super Fund

Benefits:

  • Full control over investment choices.
  • Potential fee savings for balances over $200,000.
  • Access to unique tax-saving strategies
  • Can purchase business real property
  • Enhances estate planning certainty.
Trustee’s Role:
  • Full control over investment choices.
  • Potential fee savings for balances over $200,000.
  • Access to unique tax-saving strategies
  • Can purchase business real property
  • Enhances estate planning certainty.
How SMSFs Work:
  • Functions like retail super funds: accepts contributions, invests funds, pays taxes, and provides retirement benefits (lump sums/pensions).
  • Requires administration/accounting to maintain accurate records, tax compliance, and regulatory adherence.
Permitted Investments:
  • Managed funds, shares, property, cash, fixed interest, business real property (per investment strategy).
Restrictions:
  • Cannot invest in certain assets or exceed investment limits
  • No loans to members/relatives.
  • Must solely provide retirement benefits.
  • Non-compliance risks losing tax concessions, with earnings/contributions taxed at 46.5% instead of up to 15%.
Membership:
  • Up to six members (e.g., spouse, children, parents).
  • Cost-sharing among members reduces fixed costs.