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For small business owners, there are six advantages to having a self-managed super fund.

 There are those who believe SMSF services are costly and hard to manage. But, for an owner of a small business, the advantages are far greater than the drawbacks. An effective SMSF allows you to invest in commercial properties inside your own super fund, that not only offers regular benefits but also enhances the value of your fund. Learn more about the top six advantages of having a fund as a small-business owner.



Reduction In Capital Gains Tax

The ability to include commercial properties in their fund is just one of the many advantages that small business owners can enjoy from SMSF AUDITOR. The law that governs superannuation prevents anyone from transferring his or her home to a fund, however, this is not the case for commercial properties. Office buildings and office spaces are able to be easily transferred into an SMSF and can help lower the taxes on capital gains.

In the same way, if you have to dispose of a commercial asset within your SMSF then you will have to pay a remarkably discounted capital gains tax for the sale of the property. This not only reduces the additional costs but can also increase the size of the super fund.

Increased Value Of The Business

Self-managed super funds may be used to purchase a range of assets that will increase potential value for your company. For instance, you could utilize your SMSF to purchase physical assets such as the property which will help you establish your brand on the market and offer the possibility of growing your company.

Additionally, you have the options of renting properties you purchase using your SMSF which will create an additional income stream that will increase as well as diversify the investment portfolio.

Tax Deductions On Money Earned From The Fund

Earnings from SMSF account assets are taxed at 15%. This is also applicable to commercial structures. Therefore, the fund considers commercial properties as an investment, and any income earned on the property such as rent is taxed at 15 percent. Business owners this is an advantage since they can get tax deductions for their business on the rent that is paid to the SMSF and the fund is required to pay tax at 15% on the sum.

This way the owner of a small-sized business can take advantage of tax deductions as well as make substantial contributions to retirement funds in addition.

Controlling How The Assets Are Managed

Self-managed super funds provide greater control over and management of assets. When funds are put into fund management companies the fund managers have virtually no influence over the way their money is managed, how it is being invested, and whether the company managing it will last or not.

But, with an SMSF the situation is completely different. You have total control over how your assets and money are managed. So, you do not only lower the risk of losses or legal issues associated with management companies, but also the freedom in making financial choices that coincide with your financial goals.

Financing Your Retirement And Insurance Policies

Many people do not realize that they have the chance to pay for life insurance as well as income protection insurance or even permanent and total disability insurance policies via the super funds they have. But, this option should be avoided if there are the fund's investors, as this increases the risk of having to cancel.

In addition, when you are passing on and selling their businesses, and then retire in the near future the people will benefit from an ongoing income source from their self-funded superannuation set-up. If you sell your business, take advantage of lower taxes on capital gains or lease your property out and grow your SMSF by making monthly payments to it and this fund can be an excellent passive source of income when you retire.

Making Generational Wealth In Advance

Alongside assisting your business Self-managed super funds will also allow you to create an investment that is stable for your family as well as your next generation. By carefully establishing your SMSF portfolio today you can maximize your personal wealth, and effortlessly move it over to the beneficiaries.

The fund works as a basic instrument for managing and sustainable growth of the wealth of your family over time, by investing in a systematic and prudent manner. In addition to securing your personal future, the money you earn is also available to the next generation following your die, thus serving as a viable solution to creating wealth generationally and safeguarding the future of your loved family members.

Final Words

It is essential to have a concept of how your self-managed Super Fund in Australia will help you grow your business, while also expanding on its own to safeguard families' futures. If you are looking to set up your own super fund and require professional guidance regarding all ways to invest and how to manage the investment of the fund talk to one of the most highly-rated SMSF experts – AUDITAX ACCOUNTANTS. Get set up by establishing your SMSF.

 

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Location: Perth WA, Australia

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