The Self-Managed Super Fund, or SMSF, is a type of legal entity that gathers money from investors and uses the funds in a certain way. In contrast with other forms of retirement savings, an SMSF allows the investor to control their own money and decides how they want to invest their funds. There are many advantages of having your own self-managed fund including the ability to withdraw your savings at any time.
The SMSF tax return is the term that refers to a self-managed super fund (SMSF) return. This is separate from your personal super account, which you can access through an online portal such as www.rwkaccountancy.com.au/smsf/. The SMSF tax return provides information on how your superannuation has been grown over the course of the year and also includes details on how much you have contributed, what you've spent it on, and how much of that money remains.
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In order to be able to pay for retirement, people often set up their own superannuation fund by establishing an SMSF. Employees can contribute a certain percentage of their pay into the fund, and then withdraw from it when they retire.
However, some people might need to file an SMSF tax return because they don't earn enough in their job to be able to contribute or because the funds were transferred over from another family member's super.
SMSF returns are due on the first of the month following the end of the financial year. These returns are filed electronically and must be submitted with a form or through Tax File Number (TFN) number.