Self Managed Super Funds

Retain control and direction

Callaghans has been helping the individuals and families of the Canberra region grow their wealth, manage their financial affairs and plan for future, for over thirty years now. Throughout this time Superannuation has always been an important and integral part of planning for the future.

Self-Managed Superannuation Funds are an exciting and strategic way to retain control and direction over your Superannuation assets, add flexibility to your investment choices and lower costs whilst offering in-depth planning to maximise taxation benefits and minimise tax liabilities.

Many Australians can take advantage of SMSF’s but often many feel they do not qualify or that SMSF’s can be too complex. Callaghans specialise in clearly explaining all tax matters to you and show precisely how these structures can benefit you now and into your retirement.

Learn about SMSF and how we can help

SMSF’s are sometimes referred to as “Do It Yourself” (DIY) super funds. Similar to other Superannuation funds, SMSF’s invest contributions made by members, provide benefits to members when they retire and provide death benefits to beneficiaries in the event of a member’s death.

The main difference between a SMSF and other types of Superannuation funds is that the members of a SMSF are also the trustees, or directors of a corporate trustee. This means they are required to prepare and implement an investment strategy for their fund, accept contributions and manage the payment of benefits.

SMSF’s also offer broader investment choices than what other Superannuation funds do, with options such as direct property, managed investments and direct shares.

The members of a SMSF must appoint approved auditors, and may also choose to involve taxation agents, accountants and financial advisors as well as administrators. However, the ultimate legal responsibility for the fund’s ongoing compliance rests with the individual trustees.

For a flat fee of $2,000 Callaghans can setup all required documentation of your self-managed super fund, including all necessary declarations and forms.

  • Trust Company Setup
  • Bank West Cash Management Account
  • Help with Rollover of existing superannuation accounts
  • Registering a Trust Deed
  • Setup of Online Broking Account
  • Registration of ABN/TFN with the Australian Tax Office


Callaghans provides for the full administration of the Self-Managed Superannuation Fund (SMSF). We will receive all records and related documents, maintain copies and send the originals to your address. This allows us to complete the work in a timely way and avoid delays. We do all the work and have full responsibility of the administration. You keep full control of investment decisions. Only the trustee (you) has signatory rights over the chequebook.

The benefits of this service include the following:

  • We will receive all correspondence and deal with as appropriate
  • We will receive all bank statements, dividend statements, buy/sell notifications etc and record all the details into our accounting system
  • Reconciliation of bank accounts
  • Preparation of all related investment schedules, i.e. capital gains register
  • Preparation of full financial statements as per Accounting Standard AAS 25, including Operating Statement, Statement of Financial Position
  • Preparation of Taxation Return
  • P.A.Y.G. compliance and returns
  • Trustees notes and minutes
  • Annual audit of fund
  • Member’s beneficiaries’ statements, showing amongst other information, preservation status and ETP components
  • Internet access to your portfolio through our online investment portfolio service
  • Yearly management reports which include:
  • Investment income report
  • Investment asset allocation chart
  • Investment movement report (buys/sells)
  • Investment Summary report (with yields)
  • Investment Summary report (with asset allocation percentage)
  • Our Flat Fee of $3,300 (GST inclusive) covers all of the above. This fee is paid each month ($275.00) via a direct debit facility from the Superannuation cash account. For certain complex requirements i.e. unusual capital gains situations our normal hourly rate will be charged with prior arrangement with yourself.

Investment Choice

SMSF’s have access to a broader range of investment assets than conventional superannuation funds. As well as the usual cash, fixed interest and managed funds, SMSFs also have access to investments such as residential and commercial property and direct shares.”

Tax-effective Insurance Coverage

There are two main advantages to holding insurance in a SMSF:

  • Premiums are tax deductible to the SMSF
  • Premiums can be funded from your superannuation contributions or account balance

Borrowing to Invest

New rules introduced a few years ago allow SMSF to borrow money to invest, subject easier for SMSFs to acquire larger assets such as direct property, and hold the investment in the tax advantage superannuation environment.

Estate Planning

What will happen to your estate after you are gone? Will your dependants be supported? Superannuation is likely to be a substantial asset, particularly for people with SMSFs who have higher average account balances. It is essential to ensure that superannuation funds will be paid to your dependants in the most tax effective way.

Avoiding CGT by selling assets in pension phase

Once you start a pension in a SMSF, the investment assets that support that pension are subject to zero tax in the fund. This means that earnings and capital gains on those assets are tax free although you still receive the benefit of any franking credits from share holdings. By timing the sale of assets in the fund, substantial tax savings can be achieved such as paying zero Capital Gains Tax.

It’s essential that the circumstances of the fund are reviewed to determine whether this strategy will be effective. For example, assets that support both accumulation and pension members may be only partly tax free. Your Count Adviser can assist with this process.

Transition to Retirement

Once you reach age 55 you can start a pension in your SMSF – even if you’re still working. This can be a dynamic strategy as pension payments are tax effective and can supplement your income, particularly if you are moving to part-time employment.

One of the greatest advantages of this strategy is that assets within the fund that support the pension are subject to zero tax. This strategy can be enhanced by salary sacrificing your employment income while at the same time receiving pension payments from a transition to retirement pension.

The advantages of this strategy are:

  • Salary sacrifice contributions are taxed at 15% rather than your marginal tax rate
  • Pension payments are tax free over age 60. Between ages 55 and 60 pension payments are taxable but receive a 15% rebate
  • Assets that support a pension are subject to zero tax in the fund

Recent government changes mean that in some cases Self Managed Super Fund (SMSF) trustees can borrow to purchase an asset within the fund.

Borrowing money to purchase growth assets – or those which can produce income and can grow in value over time – can have the ability to increase net wealth over time.

Previously, there were restrictions in place that prevented super funds from borrowing in this way; however, the amendment to the Superannuation Industry Supervision Act established the right of funds to borrow to invest in any asset they would otherwise be allowed to buy outright, such as property.

How does this work?

In order to facilitate your borrowings, as your SMSF is not permitted to borrow the proceeds directly from the lender, a separate trust structure (bare trust) must be established.

The trust will borrow the proceeds and purchase the investment assets. The trust will own the investment assets, and the lender will only have rights to the investment assets of the bare trust (no rights to the other assets of your SMSF).

Your SMSF will purchase units in the bare trust, and have the rights to acquire ownership of the investment assets (when appropriate). Your SMSF will receive all investment income / dividends / rent from the investments assets, make all loan repayments on your borrowings, and pay for all ongoing fees and expenses.

General advice warning: The advice provided is general advice only, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.


Callaghans Financial Services Pty Ltd ABN 97 131 317 363 provides financial planning services as an Authorised Representative of Count. ‘Count’ and ‘Count Wealth Accountants’ are trading names of Count Financial Limited ABN 19 001 974 625, AFSL No. 227232, a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count is a Professional Partner of the Financial Planning Association of Australia Limited.


Please note that any taxation and accounting services are not endorsed nor the responsibility of Count Financial Limited.