Superannuation is a long-term savings arrangement that operates primarily to provide income for

retirement. This arrangement involves employers, the self-employed and employees making

contributions over a period of time to a superannuation fund. The superannuation fund holds the

contributions in trust for the member and invests them to increase the fund's assets. These assets are

then used to provide benefits to members when they retire or suffer a serious disability, or to

member's families if the member dies.

The Government taxes superannuation savings at lower rates than normal savings if the

superannuation fund complies with certain conditions. This aspect along with the accumulation of

funds earnings from investment, combine to produce a larger benefit for retirement.

Setting up a SMSF is required at least a basic knowledge of the legislation that they as Trustees must

comply with and the use of an experienced superannuation adviser

Advantages Of Setting Up A Self Managed Superannuation Fund are :

(a) Enjoy greater investment freedom;

(b) Their money is in safe hands as they are being

invested by them as trustees

(c) They can actively participate in the management of

the fund

(d) There are reduced formal reporting requirements

(e) Often more flexible retirement planning and estate

planning options are available.

Trustees of SMSF's are the ones who are ultimately responsible for the running of their fund.

* Act honestly in all matters

* Exercise the same degree of care, skill and diligence as an ordinary prudent person

* Act in the best interest of the fund members

* Keep the assets of the fund separate from other assets (e.g. the trustee’s personal assets)

* Retain control over the fund

* Develop and implement an SMSF investment strategy

* Allow members access to certain information.

Ultimate responsibility and accountability for running the fund in

a prudent manner lies with the trustees. They should ensure that

superannuation money and other assets are kept separate from

their own personal assets as well as those belonging to a

business and should not be used vice versa.

The fund’s assets must not be viewed as a form of credit or emergency reserve when faced with a

sudden need.

iCare Super

Level 1, 1 Oxley Road HAWTHORN VIC 3122 Australia

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