The uncertainty around superannuation is driving up the use of self-managed superannuation funds (SMSF) particularly among the owners of small business according to mid-tier accounting firm.
In its latest thinkBIG study RSM Bird Cameron found that SMSFs had continued to increase in popularity with 53 per cent of business owner respondents stating they used a SMSF compared with 48 per cent in 2014 and 45 per cent in 2013.
RSM Bird Cameron director, Brad Eppingstall, said those who had set up an SMSF were concerned about the level of change and uncertainty within the superannuation sector and were using SMSFs to manage the changes and control risks around their superannuation.
“This growth is consistent with what RSM Bird Cameron has seen in clients setting up SMSFs, namely that business owners are looking to utilise SMSF’s as a means of business planning/succession planning. For people looking to buy a business property, using funds from a SMSF can be an attractive option.
“Additionally, SMSFs are more attractive to business owners as a source of asset protection and a way to plan for retirement away from the business.”
Eppingstall said the most recent tax discussion paper has focused on adequate sources of retirement income, including superannuation, and future retirees would need to plan for it to support them in the event the pension become unreliable.
“As the next 12 months unfold, SMEs are likely to need support around setting up their SMSF in the most tax-efficient way possible while complying with all the rules and regulations. Businesses will also need to keep a close eye on the potential changes to the superannuation system.”
