Direct Control Over Superannuation
An SMSF provides direct oversight of investment decisions. Trustees determine what to invest in, as well as the timing of buying, holding, and selling assets, allowing decisions to be made in line with individual objectives.
Access to a Wider Range of Investments
Investing through an SMSF allows access to a broader choice of investment options than many traditional superannuation funds. These options may include direct shares, property, and other permitted asset classes.
Greater Flexibility
Decision‑making authority rests with the trustees, enabling the development of an investment strategy that complements other personal or business investments. Strategies may be adjusted as circumstances change or new opportunities arise.
Potential Tax Benefits
Superannuation can offer favourable tax treatment when compared with non‑super investments. This structure may allow eligible members to take advantage of more tax‑effective investment strategies, subject to applicable legislation.
Potential Cost Efficiencies
For funds with a larger balance—typically $200,000 or more—an SMSF may deliver cost efficiencies by reducing certain fees, which can result in more capital available for investment. Cost outcomes will vary depending on the fund’s structure and level of activity.
Source: APRA, Quarterly Superannuation Performance, March 2013