A SMSF is a type of trust where assets are held and managed on behalf of the members in accordance with superannuation law. The fund’s sole purpose is to provide benefits to members on retirement or death.
SMSF’s have grown significantly since 1998. At that time 12% of Australia’s superannuation was held in SMSF’s compared with 32% today.
The growth in SMSF’s has occurred for many reasons. They provide greater investment flexibility and give people greater control over their super as well as provide the ideal vehicle to implement tax planning strategies to take advantage of the considerable concessions afforded to superannuation savings.
The costs of running a SMSF are often lower than those charged by other superannuation products.