Typically people operating businesses would prefer to contribute
to a super fund which they managed themselves with the assistance
of their accountant and financial adviser. In this way they can
control what investments are made, subject to the investment
restrictions in the SIS Act, and keep management fees at a
minimum.
In the last 10 years or so, many people who do not run
businesses but work in traditional employer/employee positions (as
they approach retirement age) are eligible to set up their own SMSF
and pay their concessional and non-concessional contributions to
those funds. A person would only take this course of action if
their advisers recommended him or her to do that having regard to
all relevant considerations including the size of their expected
super benefits in such a fund. In other words, a SMSF is not for
everyone but as there are more than 500,000 SMSFs in operation,
there are many people who consider the benefits make the decision
worthwhile.
