Superannuation was introduced to ensure taxpayers have money set
aside for their retirement alongside government support.
In making contributions for your retirement, you have the option
of investing your money in a:
(i) registered fund, where the decisions on how your
superannuation contributions are invested are made on your behalf
by the registered fund's trustee, depending on the type of risk
strategy you choose to adopt; or
(ii) self-managed superannuation fund (SMSF), which allows you
to have greater control as to how the money you set aside for
retirement is invested.
However, investing your funds in a SMSF does have its pros and
cons. That is, despite the autonomy that allows you, as a trustee
of the SMSF, to choose where to invest super contributions, you are
also responsible to ensure the SMSF is complaint. Where you are
found to be non-compliant, the ATO can take a range of actions
against you.
