Setting up an SMSF fund

trading_rookie · 10 March 2009

You obviously misunderstand how a capital gain is taxed (on disposal of the asset)

I mustn't ;-) … I was under the impression that managed funds like industry superfunds for example with large commercial property, value their assets every year and any CGT from those assets is taxed at 15%. That’s how I’ve read it anyway.

trading_rookie · 10 March 2009

mods please delete this post - as previous post could now be edited

Prospector · 11 March 2009

trading_rookie said:
I see now why the Super Industry wants ppl to complete a test before allowing them to start up their own SMSF.

If your investment property owned by your SMSF makes a capital gain every year for the next 10 years your SMSF will be expected to pay the ATO 15% tax for every one of those years.

NO, you dont pay capital gains tax until you sell; you do pay tax on the overall increase in value of the whole porfolio though. If it is in the pension phase then no tax at all even when selling. I know because we held some land for a few years in an SMSF and then sold. The property value has to be re-assessed every three years in a super fund for this purpose.

DB008 · 11 March 2009

To wonderrman.
The brokers are charged by the ASX certain prices for putting an order through, eg $10 per abc... lot and the rest is just profit. I've seen brokerage range from $15 - Bell Direct upto $100 - Mac Bank.
I'm saying that the GOV should step in and force the ASX to lower brokerage for SMSF's. That's all. Give the SMSF a fair go.

Boggo · 11 March 2009

DB008 said:
I'm saying that the GOV should step in and force the ASX to lower brokerage for SMSF's. That's all. Give the SMSF a fair go.

I have a couple of friends who are in the financial planning industry and based on what they are are hinting at then just the opposite is more likely to happen.

The FP industry is not happy with the rise and apparent success of of SMSF's and are lobbying certain areas of the regulators (and are getting a sympathetic ear in some quarters) to make setting up and compliance more difficult.
The ability of SMSF's enter and exit ETF's (many more on the way) with ease and just brokerage fees and minimum MER's are touching a few sensitive nerve endings apparently.

Their ideal world would be all SMSF's have to be overseen by FP's with PS146 etc qualifications... scary.

Prospector · 11 March 2009

Boggo said:
Their ideal world would be all SMSF's have to be overseen by FP's with PS146 etc qualifications... scary.

That would suck, big time! Except my Accountant is a licensed Financial Planner anyway, and he knows not to advise me UNLESS I ask for it!

sails · 11 March 2009

Boggo said:
I have a couple of friends who are in the financial planning industry and based on what they are are hinting at then just the opposite is more likely to happen.

The FP industry is not happy with the rise and apparent success of of SMSF's and are lobbying certain areas of the regulators (and are getting a sympathetic ear in some quarters) to make setting up and compliance more difficult.
The ability of SMSF's enter and exit ETF's (many more on the way) with ease and just brokerage fees and minimum MER's are touching a few sensitive nerve endings apparently.

Their ideal world would be all SMSF's have to be overseen by FP's with PS146 etc qualifications... scary.

So they've lost a big hunk of the funds they had under management, now they want to get their greasy mits on more OPM to put under their dubious care.

Does anyone know if there are SMSF associations where the masses with their own super funds could pull together to petition or lobby against these potential changes and charges?

I have found this link: http://www.moneymanagement.com.au/Article/New-association-launched-for-SMSF-trustees/222042.aspx - Self-Managed Superannuation Members Association (SMSA) in Sydney. Looks like they have only just launched it. Can't find a website on them either with a quick google search. Anyone know about them?

Boggo · 11 March 2009

I subscribe to the free ATO SMSF newsletter, it keeps you informed of basic changes after they have been implemented.
The issue below is interesting.

http://www.ato.gov.au/superfunds/co...35/008/001/002&mnu=46092&mfp=001/149&st=&cy=1

There is a review of the current tax system happening at the moment and they are inviting public submissions.
It would be a good time to have a SMSF representative organisation to be the voice and use these opportunities to make submissions (if required) on behalf of the largest superannuation sector.
http://taxreview.treasury.gov.au/content/Content.aspx?doc=html/submissions.htm

sails · 11 March 2009

Boggo said:
I subscribe to the free ATO SMSF newsletter, it keeps you informed of basic changes after they have been implemented.
The issue below is interesting.

http://www.ato.gov.au/superfunds/co...35/008/001/002&mnu=46092&mfp=001/149&st=&cy=1

Thanks for the link - looks a useful publication. With so many SMSFs, surely we would have to have some clout...

Julia · 11 March 2009

Ditto Sails' comment from me, Boggo. Really useful link.

Prospector, re your comment that if 'FP Supervision' is required it will be no problem because your accountant also has the FP qualifications, mine does also, but if they were required to provide some sort of regular report, then we can't expect them not to charge us for that, I guess.

So I would very, very annoyed if this did become regulation. I reckon many of us with SMSF's know more than some FP's about the regulations and obligations anyway.

Prospector · 11 March 2009

Julia said:
but if they were required to provide some sort of regular report, then we can't expect them not to charge us for that, I guess.

Hopefully he can develop a proforma report that you just need to fill in the blanks for the name etc. Seriously, after the shocker of a year that 'the experts' have had, how can financial planners even think they have a right to get onto this!

tul1 · 30 July 2009

Self Managed Super Funds

Hi all
Can someone share tips, or let me know where should I start in investigating this Subject? Cons \ Probs?
My husbend and I leavein Aus for about 1 year, in our 30th, both working.

Many thanks

Setting up an SMSF fund

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DB008

Boggo

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Julia

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