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Super for Self-Employed

Super For Self-Employed

By: Law 4U

Which fund is best?

You have a wide choice of possibilities:
  • insurance companies;
  • banks;
  • other financial institutions.
These are generally "public-offer" funds, which means they accept contributions from the public at large.

When you are choosing which fund to use, you should consider:
  • the administration fees;
  • the investment performance and the institution's reputation;
  • insurance cover options etc.
You can also do-it-yourself in a self-managed fund.

Can I get disability/death benefits?

You will need to get information about this from the fund, but in general you can pay an insurance premium to cover this. It should include benefits for total and temporary disability.

Can I choose the investments?

This is usually available in a public-offer fund, although changing investment strategies can involve an additional administrative charge.
 
Also your participation in this is usually limited. For example, you may be able to choose between stable investment or more risky international equities. The trustee makes the rest of the decisions.
 
My own fund?

You can set up your own fund, which is called a "self managed fund".
 
This fund must have fewer than five members (for example, a husband and wife and two children) and give control and responsibility for investment and administration to the members. It is regulated by the Tax Office. Note, the members must be trustees of the fund.
 
The laws that control self-managed funds change all the time, so it is wise to get professional accounting and financial planning advice. Major changes take place in the 2007-8 financial year. This is a specialised and at times complicated area, so always get professional advice.
 
 
 

Read this: This fact sheet is intended to be general information about the law in Australia. It is not a substitute for legal or other professional advice. Lawscape Communications Pty Ltd or First Point Media does not accept responsibility for loss to any person, who either acts or does not act because of this fact sheet.


© Lawscape Communications P/L 

Last Updated – February 2008