When it comes to managing a Self Managed Super Fund (SMSF), many trustees turn to their accountant for advice. However, whilst accountants play a valuable role in SMSF compliance and taxation, their ability to provide financial advice is significantly limited by regulatory restrictions.
So what can an accountant do (and not do) when it comes to the SMSF space – and where can you find the advice you’re looking for?
What Accountants Can Do for SMSFs
Accountants are allowed to provide factual information and general guidance on various SMSF matters, including:
- Establishment and Compliance
Helping trustees set up an SMSF and ensuring compliance with ATO regulations - Tax Planning
Advising on the tax implications of contributions, withdrawals and investment income - Investment Structures
Explaining different structures available for SMSF investments - General Caps and Concessions
Providing information on contribution limits and tax concessions - Trustee Structures
Outlining the differences between individual and corporate trustees
Additionally, accountants can help with trust deed reviews, ensuring that an SMSF trust deed remains up to date with legislative changes. Your accountant can also provide generic investment strategy templates, although they cannot tailor these strategies to individual client needs or provide personalised advice.
What Accountants Cannot Do for SMSFs
Whilst accountants are a trusted source of financial information, there are many areas where they are legally restricted from providing advice. These areas include:
- Investment Recommendations
Accountants can explain what assets an SMSF can invest in, but they cannot recommend specific investment products or strategies. If you’re considering property investment through your SMSF, you need guidance from a licensed SMSF adviser who can assess whether this strategy aligns with your financial goals. - Borrowing Within an SMSF
Leveraging SMSF funds to purchase property involves complex borrowing arrangements, such as Limited Recourse Borrowing Arrangements (LRBAs). Accountants cannot advise on the suitability of an LRBA or assist in structuring SMSF loans. This is where Sanford Finance can help, offering expert mortgage brokerage services, tailored to SMSF property investments. - Tailored Contribution and Pension Strategies
Strategic contribution planning and pension commencement decisions require personalised advice – and accountants are only permitted to provide general information on contribution caps and pension eligibility. You will need a licensed SMSF adviser for advice on when and how to contribute or commence a pension.
- Assessing Financial Products and Estate Planning
Selecting the right financial products within an SMSF or making estate planning decisions requires licensed advice. Your accountant cannot advise on which superannuation product or investment option best suits your needs, nor can they provide estate planning recommendations.
How Sanford Finance can help with SMSF Property Investment
If you’re considering purchasing property through an SMSF, Sanford Finance can guide you through the process. Here’s how we can help:
- Expert Guidance on SMSF Borrowing
We specialise in helping SMSF trustees secure finance for property investments through Limited Recourse Borrowing Arrangements (LRBAs).
Take the Next Step with Sanford Finance
If you’re considering purchasing property through your SMSF, our expert team is here to help. Contact us today to discuss your investment goals and secure the right financial strategy for your future.
