Self Managed Super Fund

Thinking about Self Managed Super

Make sure you have enough assets, time and skills

Operating a Self Managed Super Fund means you're responsible for the fund. You need to make sure you have enough assets, time, and appropriate skills to:

• Make the best investment decisions
• Meet all your obligations as trustee of your fund

As a trustee of a Self Managed Super Fund, your primary responsibility is to ensure you have invested your fund's money appropriately, so ask yourself the following questions:

• Am I a confident and knowledgeable investor?
• Will a Self Managed Super Fund do as well as or better than the other super funds after I pay all the costs?

If you are not confident you can get a better result, you may be better off leaving it to super professionals.

You need to ensure you have enough super savings to make your fund viable. The costs of establishing and running a fund can vary significantly, but as a general guide, to be competitive with an APRA-regulated fund, you will need up to around $200,000. You should get advice about your circumstances, including the proposed number of members and how you propose to run the fund. It will also cost around $2,500 to run a median-sized fund each year. However, it can often cost more depending on the cost of the professional accounting services you use and the cost of tax, audit, and legal advice you obtain to run the fund.

All Self Managed Super Fundss are subject to an annual supervisory levy designed to fund the regulatory costs of making sure funds comply with their super obligations. An annual levy of $150 is currently payable as part of the fund's income tax liability.

If you set up or join an Self Managed Super Fund, you need to make sure you have adequate life insurance in case you die or you're unable to work because of an illness or accident. Most APRA regulated super funds offer life insurance benefits up to a certain level if you die or are unable to work because of an illness or accident at a low cost because they can buy group policies. You may need to consider the benefits of an Self Managed Super Fund with your existing fund.

You should also consider the amount of time you will need to devote to managing your super.

Rogerson Kenny Business Accountants Melbourne can assist you with your accounting and auditing requirements. If you would like to appoint Rogerson Kenny Business Accountants as your approved auditor, or would like to discuss this topic further, click contact us or call us on (03) 9802 2533.

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