Is an SMSF right for you?

Before you consider taking out an SMSF, you should ask yourself:

1) Are you able to separate your personal and superannuation finances?

Use of SMSF assets for personal use (such as using investment properties or purchasing art for your home) may result in you being non compliant with superannuation laws. ANZ strongly recommends that you seek advice relating to appropriate investment strategies before making a decision.

2) Do you have the time and knowledge to manage your SMSF?

As an SMSF trustee you are responsible for managing and investing your superannuation. You should consider whether you have sufficient time and knowledge to manage this.

3) Will the benefits of an SMSF outweigh the costs?

Unlike many commercial funds which charge fees as a proportion of your super balance, SMSF fees are generally a fixed amount per annum which can potentially save money over time as your superannuation grows in size. However, dependent upon your superannuation balance an SMSF may not be the cheapest option available. In some circumstances an SMSF may have difficulty earning enough income from its investments to make this a cost effective option. You should consider whether the benefits of an SMSF outweigh the costs of running one.

4) How do the features of an SMSF compare with your current superannuation fund?

You should find out if your commercial superannuation fund offers different benefits to an SMSF structure and what the consequences of this might be on your personal circumstances. For example, some commercially run superannuation funds offer life insurance, which may need to be replaced when you move to an SMSF.

• SMSF Benefits

For more information please visit the Australian Taxation Office website or seek independent advice.

Important information

As trustee of a SMSF you are responsible for the compliance of the fund. You should be aware that there are severe consequences for failure to comply with the superannuation laws. 

For more information please visit the Australian Taxation Office website or seek independent advice.

ANZ strongly recommends that you (as trustee of an SMSF) seek independent professional advice in relation to your personal responsibilities and potential liabilities before making any investment decisions, including acquiring services through ANZ Self Managed Super, as a breach of superannuation laws can result in substantial penalties.

The information provided is general information only and is current as at March 2009. The content does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you. Before making any decision to acquire services through ANZ Self Managed Super or acquire, hold or sell any financial product, ANZ strongly recommends that you seek financial planning and/or tax advice and read the relevant Product Disclosure Statement and/or Terms and Conditions.

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