The tax benefits of Self-Managed Superannuation Funds (SMSF)

SMSFs have a few great tax advantages worth thinking about.  One is a capital gains tax benefit.  Upon retiring with a public super your funds might need to be liquidated in order to pay the capital gains tax, but with a SMSF you can move to the pension phase without triggering a capital gain tax event.

Did you know you can claim insurance and special deductions from your SMSF under the Future Service Benefits Deduction?  SMSFs are able to claim deductions for insurance premiums paid out of the fund.  But in the case of death or permanent disability, it might be better claiming the deduction for the cost of paying out the benefit.

Another benefit of an SMSF is their size.  Being smaller allows more mobility with their tax management.  If there are capital losses from, it may be advantageous to realise those against gains.  SMSFs can also manage the transition between accumulating wealth and the retirement phase for the best tax outcome.  Read more…