An SMSF stands for Self-Managed Super Fund. It's a special type of super fund that allows you to have more control over how your retirement savings are invested. Instead of a financial professional managing the investments like a retail or industry super fund, you, as the trustee(s), make the investment decisions for your SMSF.

There isn't a one-size-fits-all answer to this, as financial advisors can give you the most accurate info based on your situation and the service provider you choose. However, there may be minimum balance requirements to set up and maintain an SMSF. Contact us to find out more.

An SMSF can have up to four members.

The setup costs can vary depending on the professionals you engage. Talking to an accountant can help you understand the breakdown of establishment fees, ongoing administration fees, and tax lodgment fees. We know some great accountants. Let us know and we can help.

The exact number of SMSFs isn't as important as getting professional advice before setting one up. We know some great accountants. Let us know and we can help.

The Australian Taxation Office (ATO) offers a comprehensive guide on setting up an SMSF, including legal requirements and registration processes. You need a financial planner and accountant to help you set one up. We know lots of great accountants; let us know if you would like us to put you in contact with one.

An Electronic Service Address (ESA) is required for the ATO to communicate with your SMSF. You can register for an ESA through the ATO website.

Involving a bare trust within your SMSF can be complex. It's highly recommended to consult a qualified accountant specialising in SMSFs to ensure it's set up correctly and aligns with your goals. We know plenty of great accountants. Let us know if you would like to talk to

You can initiate a transfer/rollover of your existing super balance to your SMSF by contacting your current super fund and following their transfer instructions. Your accountant should help you with this. We know plenty of great accountants, let us know if you would like to talk to one.

The ATO website provides details on current contribution limits for different categories (concessional vs. non-concessional). Your accountant should help you with this. We know plenty of great accountants, let us know if you would like to talk to one.

Listed Investment Companies (LICs) can be a viable investment option for your SMSF. However, ensure you understand the risks and consult a financial adviser specialising in SMSFs for guidance on incorporating them into your investment strategy. We know plenty of great advisers, let us know if you would like to talk to one.

The ATO outlines the steps involved in winding up an SMSF, including notifying the ATO and distributing benefits to members. Your accountant should help you with this. We know plenty of great accountants, let us know if you would like to talk to one.

The setup costs of an SMSF, including legal fees, accounting fees, and ATO registration charges, are typically paid from the SMSF itself.

Living off your SMSF involves transitioning from accumulating wealth to drawing an income stream in retirement. Here's a general outline, but remember, seeking professional financial advice is crucial for personalised strategies. We know great advisers, let us know if you would like to talk to one.

Reaching Retirement:

You must meet a condition of release to access your super benefits, typically reaching preservation age (currently 60 or higher).

Pension Options:

Account-based Pension: This lets you keep your super invested and draw a regular income (pension) from the account. Minimum and maximum drawdown limits apply depending on your age.

Allocated Pension: You can choose to transfer a portion of your super into an allocated pension, offering more flexibility in accessing funds as a lump sum or income stream.

Spending Rules:

There are currently no minimum spending requirements for account-based pensions. However, tax implications exist for exceeding certain thresholds. Your accountant should help you with this. We know plenty of great accountants, let us know if you would like to talk to one.

Be mindful of your SMSF balance and ensure withdrawals are sustainable for your desired retirement lifestyle. Most SMSF lenders insist on a minimum liquidity buffer.

Your SMSF can invest in various types of property, including:

• Residential property (houses, apartments)

• Commercial property (offices, warehouses, retail spaces)

• Industrial property (factories, storage facilities)

There are a few key rules to remember:

• The property must solely benefit the retirement of fund members (the sole purpose test). This means you or related parties cannot live in or rent the property.

• You cannot purchase the property from a related party.

• Limited Recourse Borrowing Arrangements (LRBAs) are typically used to finance property purchases within SMSFs. With an LRBA, the lender's recourse is limited to the property itself, protecting other SMSF assets.

The sole purpose test is a fundamental rule for all SMSFs established by the Superannuation Industry (Supervision) Act 1993. It ensures that all investment decisions and actions taken by the SMSF trustees are made with the sole purpose of providing retirement or death benefits to members. This means the SMSF cannot be used for any personal gain or benefit members before retirement.

Here's what the sole purpose test prohibits in terms of property investment:

• Using the property: You or related parties cannot live in or rent the property purchased by the SMSF.

• Transactions with related parties: The property cannot be purchased from a related party, such as a family member or business associate.

Lenders generally allow SMSFs to borrow up to:

• 80% of the property value for residential purchases.

• 70% of the property value for commercial purchases.

However, this can vary depending on the lender, your SMSF's financial situation, and the loan type. It's crucial to speak with us to determine your borrowing capacity.

An LRBA stands for Limited Recourse Borrowing Arrangement. It's a special loan structure used by SMSFs to finance property purchases. With an LRBA, the lender's ability to recover funds in case of loan default is limited to the property itself. This protects other assets held within the SMSF from being seized by the lender.

1. Seek Professional Advice: Consult a financial adviser and accountant specialising in SMSFs. They can assess your suitability, investment strategy, and borrowing capacity. We know plenty of great financial planners and accountants, let us know if you would like to talk to one.

2. Establish an LRBA: We work with the lender to set up a Limited Recourse Borrowing Arrangement for the property purchase.

3. Valuation: A professional property valuation is carried out to determine the property's market value.

4. Settlement: Once legalities are finalised, settlement on the property takes place using funds from your SMSF.

Important Note: This is a simplified overview. There are many complexities involved in using an SMSF to buy property. Consulting with qualified financial and legal professionals is crucial before proceeding.