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What are the Main Responsibilities of an SMSF Administration Firm?

More and more people are opting SMSF (Self Managed Super Funds) to manage and take control of their retirement savings. An SMSF offers many significant benefits to its trustees upon their retirement, such as;

  • It allows trustees to create a tailored investment and retirement strategy by providing them control over their funds.
  • It offers greater investment flexibility.
  • It provides a range of investment options like direct shares, term deposits, collectibles, unlisted assets, international markets, and many more.
  • With 15% tax rates, it offers one of the lowest tax rates, which may decline further by offsetting other tax credits.
  • It protects the assets of SMSF members from creditors in case of bankruptcy.

These are some of the main benefits of setting SMSF, and there are many more. However, setting and running an SMSF is not as easy as it may sound. It is quite a complex task.

An SMSF trustee has many responsibilities on his shoulders, thus it is worthwhile to take the assistance of professionals like SMSF administration firm to streamline the work and eliminate the chances of error. Some of the key responsibilities of an SMSF administration firm are discussed below.

Establishing SMSF

If you want your SMSF to be eligible for tax concessions, then it is necessary to ensure that your SMSF is set up correctly. It is important to have basic knowledge about SMSF to establish SMSF rightly, such as, the number of SMSF members allowed (which is four) and the main goal of setting SMSF (which is to receive monetary advantages on retirement).

Moreover, SMSF must have trustee declaration and trust deed, a legal document which entails how to set up and operate SMSF. An SMSF administration firm organizes the set-up of your SMSF including trust declaration and trust deed.

Ensuring compliance

An SMSF needs to be ATO compliant. It helps in minimizing taxes. An SMSF administration firm makes sure that your SMSF is regulated by ATO and is in compliance with the tax laws.

Professionals working in the administration firm are highly experienced and they possess the comprehensive knowledge of the tax laws that helps them to conform to these laws.

Taxation and Audit

It is important to ensure that your SMSF tax return is lodged correctly. However, Australian taxation law is very complex and there are various annual SMSF taxation obligations include an annual audit and asset valuation requirements.

Managing taxation and auditing without the help of an expert can be very daunting and can lead to some unintended consequences. You will be required to review your investment strategy regularly and follow the strict lodgement due dates.

An SMSF administration firm reviews your financial statements and ensures that your funds adhere to the laws that apply to SMSFs. They audit your SMSF every year and provide an SMSF audit report to you.

Conclusion

So, these are the main responsibilities of an SMSF administration firm. Apart from this, they provide investment services that include investment advice and research. So, if you are planning to set up your SMSF for your retirement, then it is advisable to hire an SMSF administration firm for the smooth running of your SMSF.