Benefits of an SMSF

An SMSF offers a range of benefits, but it’s important to remember that what works well for one person may not suit another. Whether an SMSF is right for you depends on your personal financial goals, level of involvement, and appetite for responsibility.

Here are some of the key benefits SMSFs can offer:

• Broad Investment Choice
  SMSFs allow access to a wide range of investments, including direct shares, managed funds, ETFs, term deposits, and even direct property. For experienced trustees, this flexibility can be a major advantage.

• Administrative Control
  As a trustee, you have full control over how your fund is administered, including the timing of transactions, contributions, and distributions.

• Outsourcing Options
  While you retain control, you can outsource key tasks such as accounting, tax reporting, and compliance—allowing you to focus on investment decisions.

• Shared Costs Across Members
  SMSFs can have up to six members, which means costs can be shared among family members or business partners, potentially making the fund more cost-effective.

• Borrowing Opportunities
  SMSFs can borrow to invest in property or other assets under a Limited Recourse Borrowing Arrangement (LRBA), subject to strict rules and conditions.