Self-Managed Super Funds


The Decision Making Process

Comparing SMSF and other super funds

 

SMSF

Other Super Funds

Taxation / accounting

Direct control over investment decisions, structure and timing which may create better tax efficiency for each member, particularly with utilising imputation credits from fully franked dividends.

Managers can adopt various accounting methods. Net tax advantages may be allocated back to specific members or apportioned across all members.

Capital gains tax

The opportunity to start a pension without needing to sell assets. This may eliminate capital gains tax (CGT) that would otherwise apply in the accumulation phase.

CGT liability may be built into unit redemption prices so members still effectively pay this tax when switching over to a pension. 

With some super funds it may be necessary to effectively sell investments in the accumulation phase and repurchase in the pension phase, which would crystalise any capital gains.