In an earlier program, tax expert Michael Jones of Cummings Flavel McCormack outlined the main provisions of the Cooper Review of superannuation, with particular reference to Self-Managed Super Funds. This time, after recapping briefly on those recommendations, he sets out the main advantages and disadvantages of SMSFs for business owners. He sees 3 main plusses - greater control over the assets of the fund, its investment policy and the provision of death benefits; tax benefits which can arise when the fund changes from accumulation to pension phase; and potential cost savings against the fees charged by retail or industry funds. On the downside,cost can be a problem if the fund is a small one; being a trustee carries the risk of Tax Office penalties if things aren't done properly; and a professional fund manager may do a better job over the long term than you can do.
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