Reduced administrative burden:
- Professional trustee: SAFs have a professional licensed trustee company handle all administrative and compliance tasks, saving you time and effort. This frees you from needing to understand and keep up with complex legislation.
- Simpler reporting: APRA regulation generally leads to simpler reporting requirements compared to the ATO for SMSFs.
Lower potential liability:
- Limited member responsibility: In an SAF, your liability is limited to your own account balance. In an SMSF, trustees can be personally liable for breaches of the Superannuation Industry (Supervision) Act.
- Professional trustee oversight: The professional trustee is responsible for ensuring compliance and managing risks, offering an extra layer of protection.
Dispute resolution and compensation:
- Access to AFCA: SAF members can take complaints to the Australian Financial Complaints Authority (AFCA) for free dispute resolution and potentially receive compensation. SMSFs cannot access AFCA.
- Death benefit disputes: SAF death benefit disputes can be handled by AFCA, whereas SMSFs must go through the court system.
Other potential advantages:Time efficiency: If you lack time or expertise for SMSF administration, a SAF can be a less time-consuming option.
It’s important to note that the ideal choice between a SAF and an SMSF depends on your individual circumstances and goals. Consider factors such as your super balance, investment preferences, risk tolerance, and administrative abilities before making a decision.
Facing the complexities of Small Arpa Fund (SAF)? Our experienced advisors are here to provide personalised guidance and support. Book a confidential consultation to discuss your unique situation, understand the nuances of navigating the SAF landscape, and explore tailored strategies to secure your financial future. Let us be your partners in this crucial journey. Schedule a time to talk with us today and gain clarity on the path ahead.Click here
If you require comprehensive financial advice, consider reaching out to our sister company, Forman Financial Services. They specialise in a range of financial solutions to meet your unique needs. Book a consultation today for expert advice tailored to your SAF journey. Click here
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.