SMSF Consultancy in Melbourne

Is an SMSF Still the Right Vehicle for Your Retirement?

An SMSF with fewer than two members, a balance below $200,000–$250,000, or no active investment strategy often costs more to run than it delivers in concessional tax benefits. Industry benchmarking consistently shows that SMSFs with balances below $200,000 produce lower net returns than APRA-regulated funds after costs. Our fund review assesses whether your SMSF continues to justify its administration costs, compliance burden, and trustee obligations — or whether consolidation into an industry or retail fund would better serve your retirement outcomes.

How Do You Remediate SMSF Compliance Breaches?

Compliance breaches — in-house asset limit breaches, loans to members, failure to prepare financial statements on time, or inadequate documentation of related-party transactions — must be reported to the ATO and remediated under a structured process. The ATO's Voluntary Disclosure Service allows trustees to self-report breaches in exchange for reduced penalties. Our consultancy identifies the nature and severity of any compliance issue, prepares the remediation plan, and manages the ATO engagement on your behalf. A fund operating under a notice of non-compliance is taxed at 45% on all income — early remediation is almost always the lower-cost outcome.

What Should an SMSF Investment Strategy Include?

Section 52B of the SIS Act requires every SMSF to have a written investment strategy that considers the risk and likely return of investments, the composition and diversification of the portfolio, the liquidity of assets relative to the fund's expected cash flow requirements, and the ability of the fund to discharge its existing and prospective liabilities. An investment strategy that simply lists permitted asset classes without addressing these four elements does not meet the ATO's requirements and will be flagged in an annual audit. Our consultancy reviews and updates your investment strategy to reflect your fund's actual holdings, member demographics, and retirement timeline.

When Should an SMSF Transition to Pension Phase?

Commencing a retirement income stream (account-based pension) from an SMSF triggers the fund's tax rate on income and capital gains dropping from 15% to 0% on assets supporting the pension. For members who have reached their preservation age (between 57 and 60 depending on birth year) and met a condition of release, pension phase is typically the most tax-efficient position. However, the transition requires careful sequencing — the transfer balance cap of $1.9 million (indexed) limits the total amount each member can hold in pension phase, and any excess must remain in accumulation at 15%. Our consultancy models pension phase timing, transfer balance cap implications, and the interaction with any existing defined benefit interests.

How Does an SMSF Integrate with Estate Planning?

Superannuation does not automatically form part of a deceased member's estate — it is distributed according to the fund's trust deed and any binding death benefit nominations (BDBNs) in place. Without a valid, current BDBN, the trustee has discretion over how benefits are paid, which can result in outcomes inconsistent with the member's wishes. Non-lapsing BDBNs, reversionary pension nominations, and trust deed provisions interact with each other and with estate planning documents including wills and testamentary trusts. Centric Accountants reviews your fund's death benefit provisions, identifies gaps or conflicts, and coordinates with your estate planning solicitor to ensure your superannuation reaches the intended beneficiaries with minimum tax cost.