Top 5 Reasons That Trustees Have An SMSF Account:

1. Investment Options – Having an SMSF Account gives more control to the trustee over the investment choice when compared to other funds. By meeting the sole purpose test and regulations trustees have the option to invest SMSF money virtually in anything if allowed by the Superannuation Industry laws and rules. There are options of borrowing under limited recourse borrowing arrangement for property purchase etc if the law allows however these days banks make it difficult with SMSF borrowing products. By following the strict rules set by the regulator there are options to invest in other assets like Artworks, Collectables, Gold, etc. SMSF also gives trustees more flexibility in keeping or selling the asset if the market condition changes.
   
   

2. Pooling with other members – SMSF gives the option to have up to six members in the fund. This ability allows them to invest in an investment where they can’t do with their individual super balance. SMSF was allowed to have four members but this has now increased to six members with superannuation industry changes. This gives options to fund members to invest in an asset like property which they were not able to do individually.
   
   

3. Control – As a member and trustee of the SMSF gives you control how to invest super money and you become more aware of you super savings and monitor your SMSF investments and their performance over time as on the other hand with industry or retail funds because of large investment size performance takes time to release to members. Nowadays with the help of SMSF Accountant Melbourne as they utilize the latest technology software that allows trustees to track investment performance time and inefficient way which helps trustees in their decision-making process.
   
   

4. Tax Management – Current tax rates for SMSF in Australia is 15% except for certain circumstances set by rules and regulations of the Superannuation Industry laws. As SMSF members and trustees have more control over SMSF assets and their investment decisions tax positions can be effectively managed by the trustees. Once SMSF is in the pension phase no tax payable up to certain limits of a balance transfer to the pension phase. Means have more control of keeping and disposal of the SMSF asset you may be able to reduce or eliminate tax liability by doing it legally as allowed by the laws.
   
   

5. Running expenses – In the past SMSF was the option for wealthy people because of high establishment and running costs. Nowadays as the competition between SMSF service providers increases over time and SMSFs become more cost-effective by the use of the latest technology and software. At SMSF Account Melbourne accounting costs are fixed annually.