Unsure about starting a Self-Managed Super Fund (SMSF) because you’re unclear about the tax benefits? It’s worth getting to know your SMSF tax saving options to give you control over your investments, as well as an understanding of what tax savings may be available. Here are a few of the benefits to consider:

1. No capital gains tax

Generally, several years of funnelling individual contributions into an investment fund will earn a good return in terms of appreciation and acquired capital value. You will also know that when you reach retirement age and are ready to enjoy the fruits of your labour – liquidating your assets – that you’ll have to pay a decent amount of capital gains tax. Assets owned for over a year can enjoy a discount of a third on their capital gains tax, with an SMSF, you can move your funds to your pension without incurring any tax at all!

2. A future benefits deduction

When you are part of an SMSF, you can claim deductions for future service benefits. This option isn’t open to large funds, and it allows you to gain a tax benefit in terms of a future liability deduction should death or disability occur before you reach pensionable age. This means that should you be part of an SMSF and become disabled or die, you or your family may receive a total permanent disability benefit payout (comprised of your contribution balance and insurance). There would be a tax deduction for the fund calculated using the number of years you are from retirement and your payout balance.

3. Offset losses with gains

It’s common for funds to offset annual capital gains made during a financial year with capital losses stemming from other investments. Depending on where you are in the phase (accumulation or pension), you may have the option to dispose of any loss assets, provided you don’t wait until the pension phase when you can’t use your losses due to their tax-exempt status.

Extracting the most value from your SMSF is complicated, but you need not go it alone. Partner with an accountant you can trust who will provide you with expert SMSF accounting and taxation advice. Contact Stones Sharp and we can guide you through the process and assist you to make the most of your money and tax benefits in an SMSF.

Shane Borg

Shane Borg


Shane is a Fellow of the Australian Society of Certified Practicing Accountants and a Chartered Accountant.

Shane’s passion is to consider the clients, the client’s business and taxation affairs with a holistic approach whilst providing business mentoring, business strategies, systems development, taxation advice and taxation planning in order to assist his clients and their business achieve their goals.

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