If we talk about the advantages of taxation, managing your own funds gives you a greater control over your investments; besides you have a variety of options before you, giving you some broader idea of investment. The prime idea is to provide money for your retirement just to cut down your investments in various assets for a lavish life at present and thereby making the final innings of your life insecure.
Starting a procedure like this needs you to keep up with the steps and rules mentioned by the Australian Taxation Office. Some of these include establishment of the trust followed by election of being a regulated fund in order to obtain a tax file number and an Australian business number. The third step involves preparation of an investment strategy which has to work out in your favor before you can implement it. Finally, open a bank account which is of no hassle at all.
Starting off with such a process asks for the preparation of a trust deed. Consulting a personal accountant or a legal service company for such a deed should explain you better about the process and how to go about it. You should keep it in your mind that unless they hold an Australian financial services license, your personal accountant or the legal service company cannot advise you on whether it is the right financial decision for you to take up the process. These trust deeds basically sets out matters like the details of the trustees and their appointment process. Also, their powers and conditions for contributions and benefit payments are mentioned. What you need to do to begin with is to make sure that the trust deed is dated and executed properly.
Getting to manage your own tax gives you an extra edge of having the control over your own account. Now it remains up to you as how skilled you are to provide adequate time for your Self managed Super Fund from your regular busy schedule.
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