Choosing to self manage your super fund is a big decision. The hands on control that appeals to many also brings added responsibility and work. For people with a lot of super and high level financial and legal skills, it can be a wise choice. Still, its important to understand your obligations and do your research before setting up an SMSF. In this article, we’ll discuss some of the basics about setting up an SMSF in Melbourne, especially the requirements and the importance of choosing a business accountant Melbourne has to offer.
What Are Your Responsibilities?
The Australian Taxation Office has set strict regulations about SMSFs, all of which must be thoroughly understood and reviewed. Anyone running his or her own SMSF must:
- Accept the role of trustee or director and the legal duties associated with that role.
- Use the money only for retirement benefits.
- Set and follow an investment strategy that helps to ensure that the fund will meet retirement needs.
- Keep detailed records and keep up with annual audits by an approved SMSF auditor.
What Do You Need?
Managing your own super fund means that you’ll need a fair amount of money to get started, along with a few other things. These might include,
- A large amount of money in the fund, at least $200,000, to make set up and ongoing costs worthwhile.
- A budget for ongoing expenses like professional accounting services, taxes, audits, and legal advice.
- Time to manage the fund.
- Advanced skills and experience in finances.
- Separate life insurance coverage including income protection and total and permanent disability coverage.
Its important to note that an adviser can be paid to help with administration or investment decisions, but cannot assume the responsibility of trustee or director. This adviser must have a license in order to advise on investments within an SMSF. However, the accountants melbourne residents are already working with have an exemption. A business accountant Melbourne residents already work with can provide advice on setting up an SMSF without a license.
What Are Your Options for SMSF Melbourne Help?
In the Commonwealth of Nations, of which Australia is a part, along with the United Kingdom, Canada, New Zealand, Hong Kong pre 1997 and several dozen other states, have the following commonly recognised accounting qualifications:
- Chartered Accountant (CA or ACA)
- Chartered Certified Accountant (ACCA)
- Chartered Management Accountant (ACMA)
- International Accountant (AAIA)
Any business accountant melbourne residents choose to work with should have at least one of these designations in order to provide sound advice on setting up an SMSF. A business accountant melbourne might have could be a part of an Australian Accounting society. The Institute of Certified Management Accountants (ICMA) has many members who are well qualified to advise about the beginning of an SMSF. ICMA focuses on management accounting, making it different from other accounting societies like CPA Australia, Institute of Chartered Accountants of Australia, and the Institute of Public Accountants.
It is highly recommended that anyone considering managing his or her own super meet with a qualified, experience accountant before going forward. The process is complex, and it isn’t right for everybody. Be sure to understand the extent of your decision before opting for an SMSF.