Superannuation is just a long term investment where your money is accumulated, normally until retirement, which is designed to assist your standard of living during retirement. A DIY Superannuation Fund (also known as a Self Managed Superannuation Fund) allows you to set up and contribute to an independent fund managed by yourself, which gives you numerous benefits such as having more control over where your Superannuation dollars are invested.

The growth in DIY Superannuation Funds has been enormous during the last few years and is the fastest growing sector of the Superannuation industry. Coupled with the relaxed borrowing rules announced in the 2007 budget and the tax advantages available, more and more people are enjoying the benefits a DIY Superannuation Fund has to offer. Today, they are one of the most effective tax and Centrelink-favoured investment structures. They are encouraged by the Government so that people can support, or partly support themselves in retirement.

The key features of a DIY Superannuation Fund are:

• Control - the members of a DIY Superannuation Fund are also the trustees – they control the investment of their contributions and the payment of their benefits.
• Investment – the members/trustees implement the investment strategies. Crea & Co are not Financial Planners, however, we can recommend Financial Planners who can help you with this.
• Flexibility - the Fund can accept personal and multiple employer contributions.
• Multiple members – up to four family members can participate in a Fund.
• Business - business partners can be the trustees and members.
• Portability – the Fund is totally portable and it is not necessary for each member to live at the same address or even in the same State.
• Security – the members/trustees control the Fund and hold the investments in their names.
• Protection – a member’s Fund assets have some protection from creditors in the event of bankruptcy.
• Administration - all DIY Superannuation Funds must have a documented investment strategy and a trust deed.
• Pension Fund –a DIY Superannuation Fund becomes a DIY Pension Fund at pension commencement.