Professional Documents
Culture Documents
Superannuation Funds
Version 5.1
This document provides some additional information to help
you understand the financial planning concepts discussed in
the SOA in relation to Self Managed Superannuation Funds.
This document has been published by This document contains general information
GWM Adviser Services Limited AFSL about the benefits, costs and risks
230692, registered address 105-153 associated with certain product classes and
Miller St North Sydney NSW 2060, ABN strategies. It is designed for use in
96 002 071 749 for use in conjunction conjunction with a Statement of Advice that
with Statements of Advice prepared by its takes into account the circumstances and
authorised representatives and the objectives of an individual. Before making a
representatives or authorised commitment to purchase or sell a financial
representatives of National Australia Bank product, you should ensure that you have
Limited, Godfrey Pembroke Limited, obtained an individual Statement of Advice.
Apogee Financial Planning Limited, As legislation may change, you should
Meritum Financial Planning Limited, JBWere ensure you have the most recent version of
Limited and Australian Financial Services this document.
Licensees with whom it has a commercial
services agreement.
Self Managed Investment guidelines
HOW TO READ Superannuation Funds Legislation requires the trustees of SMSFs
THIS DOCUMENT For individuals seeking to own direct prepare and implement an investment
investments within superannuation strategy that includes the:
Managing your finances to meet or gain greater control of their • risk/return profile of selected
your day to day requirements superannuation portfolio, Self Managed investments in light of the
as well as your long-term goals Superannuation Funds (SMSFs) can be investment horizon
can be a complex task. There
an attractive alternative.
are all sorts of issues you need • diversification of fund assets
to consider such as taxation, SMSFs can facilitate all major
• liquidity of fund assets,
legislation, protecting your wealth superannuation functions including:
and assets, associated costs and • ability of the fund to attain life
• accepting new superannuation
the inherent risks of investment. insurance for members and
When undertaking a financial plan contributions
it is important you understand how • housing superannuation funds received • ability of the fund to meet current and
these issues will impact you and from a change in employment, and prospective liabilities.
what you should expect over time.
• paying a retirement income. This strategy must be documented,
Your financial adviser will provide monitored regularly and updated
you with a Statement of Advice
(SOA) which sets out the details
Considerations in establishing where required.
of the advice and how it will meet SMSFs In addition, a SMSF may only purchase
your goals and objectives. certain types of investments from you,
Members
This document provides some an associate or another individual or entity
additional information to help you A SMSF must have between one and who is deemed to be a related party.
understand the financial planning four members. No member is allowed Examples include:
concepts discussed in the SOA to be an ‘employee’ of another member
• shares listed in Australia or an
in relation to Self Managed unless related.
approved overseas stock exchange
Superannuation Funds.
It is very important you read this
The sole purpose test • units in widely held unit trusts, and
document to help you understand To meet the sole purpose test, SMSFs • business real property used wholly for
the benefits of the strategies must be established for: any business purpose.
recommended to you and the
• benefits to members upon retirement; or
associated costs and risks. The transfer of any other assets may
• death or ancillary benefits to members. attract a penalty of imprisonment.
Please contact your adviser if
you do not understand anything,
The trustee of a regulated superannuation Cost considerations
or need further information or
clarification. fund must comply with the sole purpose
test to be eligible for the taxation The costs associated with establishing a
concessions available to a complying SMSF may include:
superannuation fund. • the preparation of a trust deed including
updates following legislative changes
• in the event of a corporate trustee,
the costs of establishing and using
this framework
• the costs of using and establishing the
administrative framework and,
• the accounting, audit and ongoing
administration of the fund.