Super/UK Pensions - SMSF
Superannuation is the name used in Australia as the means of saving tax efficiently for an individual’s retirement.
Self Managed Superannuation Funds – or SMSFs – are one type of superannuation fund, albeit a type that is being used increasingly often by those who wish to be more involved in investment management decisions affecting more flexible choices.
Self Managed Superannuation Funds are now the largest and fastest growing segment of the superannuation industry in Australia, as more individuals take control of their retirement.
Advantages of a SMSF
- Ability to hold UK£ pension fund balances (of particular interest to migrants from the UK or returning Australians who are considering the transfer of overseas pension scheme benefits to Australia).
- Ability to acquire commercial premises (SMSFs are frequently used by business owners to acquire premises from which a business is to be carried on)
- More investment options.
- Greater control of retirement savings.
The difference between a SMSF and other types of super funds is, generally, that the members of a SMSF are also the trustees.
This means the members of the SMSF run it for their own retirement benefit.
For trustees of SMSFs, managing the fund and ensuring compliance with relevant legislation is critical.
There are many rules and regulations that govern superannuation generally which are designed to protect retirement income – and to ensure the concessional tax status of superannuation is not abused.
Trustees must adhere to the rules and are ultimately responsible for the running of the SMSF, even if tax, finance and superannuation professionals are used to help to manage the Fund.
SMSFs are not for everyone and if you are considering using one GM Tax recommends that you consider the options carefully before making a decision. This will be a significant financial decision, and you must dedicate time to operate a SMSF properly.
We would recommend that you obtain professional and financial advice prior to the establishment of a SMSF to ensure that a SMSF is right for you. We at GM Tax can provide guidance to understand the tax considerations of operating a SMSF while you are considering your options.
- The establishment of the Self Managed Superannuation Fund
- Obtaining a Tax File Number for the Fund from the Australian Taxation Office
- Preparing the annual accounts of the SMSF
- Arranging for the accounts to be audited by an independent auditor
- Preparing the tax return of the SMSF for submission to the Australian Taxation Office
- The transfer of an overseas pension benefits into a SMSF in Australia, where pension benefits have been accrued outside Australia
- Obtaining QROPS (Qualifying Recognised Overseas Pension Scheme) status for the SMSF where pension benefits have been accrued in the UK and are to be transferred to Australia
- The investment of monies held within the SMSF
GM Tax has a policy of providing a fixed fee quote to those that are interested in engaging our services.
If we at GM Tax can be of assistance to you in respect of your Self Managed Superannuation Fund and would like a fee proposal please send an enquiry via our contact us button or you can call a GM Tax office closest to you.
GM Tax also offers the following services:
- Preparation of Financial Statements for Self Managed Superannuation Funds (SMSF).
- Preparation of SMSF tax returns, with all returns submitted to the ATO electronically.
- QROPS approval applications with HMRC, including attendance to trust deed alterations.
- Assistance with QROPS reporting obligations to HMRC.
- Preparation with the application for exemption from UK tax in relation to UK Pensions with Australia.
- Establishment of SMSF and attending to all appropriate registrations.
- Preparation and electronic submission of UK and Australian tax returns.