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Buying Shares in a SMSF
Our Perth-based team of tax accountants can assist you with the setup of an SMSF for the purposes of investing into shares and other assets.
Thereafter, we can assist with ongoing annual compliance obligations such as annual tax return.
Please note, our involvement is strictly limited to accounting solutions. We do not provide financial/investment advice.
Share Trading in a SMSF
We use the term “share trading” to cover investing activity involving:
- Australian share market
- International share market (e.g. New York Stock Exchange, Nasdaq)
- Private Equities
- Pre-IPO stocks
- ETFs
- Managed Funds
- Options
- Forex
- Derivatives
The Superannuation Laws require that you maintain the SMSF for the sole purpose of providing retirement benefits to members (i.e. “The Sole Purpose Test”). Therefore, an SMSF cannot typically hold investments in related parties and members cannot use SMSF assets for any form of personal enjoyment.
Further, SMSFs are generally restricted from borrowings and need to be careful not to expose assets to adverse liabilities. Accordingly, you need to be very careful with margin and derivatives trading in a SMSF.
Read Key Points & Transcript
Personalised Accounting Advice for Shares in your SMSF
video key points
- Establishing a Self-Managed Superannuation Fund (SMSF) requires careful planning, ensuring the trust deed allows for diverse investment opportunities including domestic and international shares, ETFs, index funds, managed funds, derivatives and more.
- Compliance with Super rules is crucial, particularly concerning the Sole Purpose Test, which dictates that the SMSF is solely for retirement savings. Additionally, maintaining arm’s length transactions and adhering to borrowing and margin trading conditions are essential.
- SMSFs must navigate strict guidelines, such as restrictions on purchasing from related parties and ensuring transactions remain at arm’s length, to avoid compliance breaches.
- Munro’s acts as trusted accountants in preventing and resolving SMSF-related issues, working collaboratively with clients and their financial advisors to manage annual compliance obligations, including SMSF tax return, financial statements, fund minutes and seamless audits.
Presented by: Christine Prasetia
video transcript
Munro’s provides professional accounting advice and assistance for Self-Managed Superannuation Funds that invest into shares and other investments.
Upon setting up a SMSF, if you intend to invest into a diverse range of investments such as domestic shares, international shares, ETFs, index funds, managed funds, hedge funds, venture capital, derivatives, options, foreign currency, etc, it is essential that the rules of the SMSF as defined in the trust deed permit this.
Thereafter, when making the investments, it is essential that you comply with the Super rules such as Sole Purpose Test (it’s for your retirement only), restrictions on who you can buy from, maintaining arm’s length transactions and abiding by strict borrowing and margin trading conditions.
As the Professional Problem Solvers, we are here to firstly prevent SMSF problems and mitigate them should they already exist. We work closely with clients and their financial advisors to attend to the annual compliance obligations such as tax return, financial statements, fund minutes and seamless audit.
If you need specialist assistance with your SMSF, we are here to help.
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Discover Our Key Services & Solutions
SMSF Accounting
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- Call Us 1800 818 924
- Email Us hello@munros.com.au
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308 Fitzgerald Street
Perth WA 6000