Sydney, Australia, January 07, 2013 --(PR.com
)-- Many countries have voluntary or compulsory retirement savings schemes. Since 1992, the Australian government has introduced several schemes for retirement income and investment, of which the “Self-Managed Superannuation Fund Scheme (SMSF)” is the largest by value and most popular. Befree Super, an SMSF compliance management firm, is offering Free set up of new SMSFs for a limited time only.
According to the company’s Sales Manager, while many superannuation arrangements in Australia are mandatory, i.e. employment based funds geared towards generating retirement or pension benefits, there are several voluntary savings and investment schemes. Self-Managed Super Funds are one such scheme whereby a group of individuals or corporate bodies can set up and operate Self Managed Superannuation Funds under a trusteeship structure.
The rules governing setting up of new SMSFs in Australia are simple. The group is required to form a trust, open a bank account and register the SMSF with the Australian Tax Office (ATO), the regulatory body that enforces SMSF rules and regulations, collects taxes and ensures SMSF compliance. According to company sources, SMSFs make up 25% of the total superannuation industry in Australia, so there is a healthy environment for investment through SMSFs.
While formation of an SMSF is easy, running it can be daunting due to strict ATO rules on investment and compliance. SMSF compliance can be a complicated process especially if trustees are not trained in financial and tax matters. Self-Managed Super Fund trustees are responsible for prudent management of funds and investment decisions. They are also required to have the SMSF audited, maintain trustee resolutions & minutes and prepare financial statements and lodge tax returns annually.
If for any reason the trustees are not able to maintain and manage SMSFs as per ATO guidelines, they can approach independent SMSF services that carry out SMSF compliance for monthly or yearly retainer fees. These fees generally include consulting, attending all accounting and taxation matters, advising on fund contributions, availing loans and investments. They also help in new SMSF setup.
befree Super is an independent agency providing SMSF compliance, accounting, auditing and tax services nationally. befree Super is a CPA firm and Registered Tax Agent hence is authorised to handle clients’ financial matters with the Australian Tax Office.
Disclaimer: The information provided in this document is for general use only and is not intended as advice in any form. Readers should seek professional advice from appropriate sources before making any decisions regarding their superannuation funds and investments thereof.