Mr Michael Carmody, Commissioner for Taxation, and Mr Jeffrey Lucy, Chairman of the Australian Securities and Investments Commission, today released Is self managed super right for you?, a fact sheet suggesting four questions that people considering moving into a self managed superannuation fund should ask themselves.

‘ASIC and the Tax Office have suggested these four questions because self managed superannuation funds are more complex and expensive to set up and run than many people realise’, Mr Lucy said.

‘People considering self managed super need to ensure they are familiar with the rules governing these funds. In particular, don’t think having a self managed super fund means you can use assets in the fund for your own enjoyment before retirement’, Mr Carmody said.

‘You need to think carefully before establishing a self managed super fund (SMSF) because it might not be right for you’, Mr Lucy said.

The four questions from the Tax Office and ASIC to help decide if an SMSF is the right decision for you are:

1. Is the fund strictly for retirement benefits only?
   The assets and money in your fund are strictly for retirement benefits only. You can’t get a benefit now, e.g. buy a holiday home and then use it or have access to the money. Avoid illegal early access schemes.
2. Do you have the time and skills?
   ‘Self managed’ means that you do the work. You must work out an investment strategy. You must be the trustee of your own fund. You remain legally responsible.
3. Will the benefits be worth the cost?
   Many commentators suggest that you need around $200,000 in super to make the costs of a SMSF competitive with other super alternatives. The booklet Super Choices provides helpful information for comparing and choosing a fund.
4. How will switching to a self managed fund affect your current super?
   Changing funds means changing benefits, services and fees. Make sure you don't leave yourself without life or other important insurances and compare costs. Keep fees and charges down. If you can’t figure it out yourself, get professional help from a licensed financial advisory business.

Is self managed super right for you? is available from the Tax Office website (www.ato.gov.au/super) or information line 13 10 20, or from ASIC’s consumer protection website (www.fido.gov.au/smsf) or Infoline 1300 300 630.

End of release

Download a copy of the factsheet

Lots more information about superannuation and self managed super funds on our consumer website FIDO