SMSF Administration

By Jason Fittler

Self Managed Super Funds (SMSF) is the fastest growing sector in the superannuation industry.

Introduced back in 1994 only a few took up the idea.  Many accountants and advisers were reluctant to be involved. In fact back then you needed to be a specialist adviser to talk to clients on such issues, this regulation was done away with in time.

Since the GFC more and more people have turned to the SMSF sector.  First to get control over their investments, second to look to outperform the super sector in general.

It is difficult to gather performance returns of the SMSF sector as each SMSF is as unique as it owner. The last attempt was made in 2011.  Then it was fond that SMSFs outperformed APRA funds six out the seven years leading up to the end of 2011. The SMSFs out performed over this time by an annualized return 3.4% higher then APRA regulated funds.

Taking control of your future is more important than ever. If the GFC taught us one thing it is that large investment banks look after themselves.

SMSF's allow you to tailor your super fund to suit you and gives you direct control over the investments. However, you will need the right tools to ensure that the fund is run correctly.

The first question is who will administer your SMSF?

The administrator is the person who takes care of all of the paperwork around the SMSF. It is an important job, which needs to be 100% correct. You can of course do you own administration however as the fund gets larger the job will get larger as well.

The administration needs to keep track of all of your investments. Income, dividends, current valuations, corporate actions, buys, sells, and capital gains tax positions.

A good administrator will also be able to produce business activities statements, end of year financial statements and tax returns.

They will assist you with keeping your Trust Deed up to date, your insurance in place, paperwork for starting pensions, binding nominations and investment strategies.

Sure your accountant could do this for you but the costs would blow out. And if you hold shares most accountants are not in a position to be up to date with corporate actions.

You will also need ongoing advice on administration. And you must have an up to date view on your investments to ensure that you do not miss any opportunity or get caught with a dud investment.

You need an adviser who provides not just the software but also the advice to go along with it.

You need an adviser who understand the market and can assist you with recommendations. 

You need an advisor to be a sounding board in regards investments you are thinking about.

Recently the big end of town has recognized that the SMSF administration industry is one to be in. AMP has taken over the SMSF administration platform Supercorp. If you or your accountant is using this platform expect to start seeing AMP product marketing. 

It is easy for a SMSF owner to mistake marketing for advice.

You are better off with an administration service that offers advice and administration. 

For more information on SMSF's register for our upcoming SMSF workshop. For details call me on (07) 4771 4577.