Self-Managed Super Funds
The Decision Making Process
Comparing SMSF and other super funds
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SMSF |
Other Super Funds |
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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 as they deem appropriate. Net tax advantages may be allocated back to specific members or apportioned across all members. |
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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. |
