: If you are under 65, you can make both employer and personal contributions.

If you are between 65 and 74, you are entitled to make employer and personal contributions only if you meet certain work tests.

Under current legislation, you can begin accessing your superannuation benefit via a Transition to Retirement Income Stream (TRIS) once you reach preservation age (currently 55). Alternatively, you can commence a pension:

1. after you have reached preservation age and you retire
2. when you reach 65 years of age
3. upon death

You could be entitled to access benefits earlier if you are permanently incapacitated, suffer severe financial hardship, or on other compassionate grounds. If you begin a TRIS or accounts-based pension as soon as you are eligible, you may be able to reduce capital gains tax within the super fund or as part of a personal minimisation strategy.

There are a number of different reasons why people decide to manage their own super funds.

• A self-managed super fund requires no minimum to setup
• You have control over investment decisions
• SMSFs allow you to gear your fund via limited resource borrowing arrangements
• Having both spouses’ benefits in one fund reduces costs
• You’ll gain access to a wider selection of investment options, such as an investment property
• SMSFs are attractive vehicles to hold your wealth and can be a part of your overall tax minimisation strategy
• When you turn 60 and commence a pension, the assets supporting that pension are exempt from capital gains tax and the pension you receive is tax-free

Yes! But there are strict rules surrounding money borrowed from an SMSF to acquire assets. Always seek professional advice before going down this road. For instance, your SMSF can only borrow to acquire assets that it would be otherwise allowed to acquire. So, in some cases, your SMSF could borrow money to acquire the member’s business premises. Be careful, though, as SMSF cannot use the borrowings to improve the property i.e. extensions or renovations.

In order to be a complying superannuation fund and continue to be taxed at 15%, the central management and control of the fund must remain in Australia. Careful planning is required before moving overseas to ensure that your non-resident status will not result in your fund being taxed at the highest rate. Power of attorney and other strategies exist to protect your member balance from excessive tax.