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03 8456 8883

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info@nextstepsuper.com.au

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Level 2, Suite 16, 240 Plenty Road, Bundoora Vic 3083

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Investments

At Next Step Super, we are a no financial advice model, we do not advise on what to invest in. However, the following are the investments which are allowed and disallowed to be held in a Self-Managed Superannuation Fund (SMSF).

 

                                 Allowed SMSF Investments

Cash:                                                            We set up a Macquarie Cash Management Account with your consent to hold all your funds in. Interest will be earned on the balance of your account.

Australian shares:
SMSFs can invest in shares listed on the Australian Securities Exchange (ASX), subject to certain restrictions.

International shares: 
SMSFs can invest in shares listed on international stock exchanges, subject to compliance with regulatory requirements.

Property: 
SMSFs can invest in commercial and residential properties, either directly or indirectly through property trusts. However, there are specific rules and regulations around acquiring property through an SMSF.

Managed funds:
SMSFs can invest in managed funds, including managed investment schemes, exchange-traded funds (ETFs), and index funds.

Term deposits and fixed income: 
SMSFs can invest in term deposits and fixed-income securities like government bonds and corporate bonds.

Collectibles and personal use assets: 
SMSFs can invest in collectibles and personal use assets like artwork, jewelry, vintage cars, and wine, subject to specific restrictions and conditions set by the Australian Taxation Office (ATO). The sole purpose of holding these assets should be for genuine retirement investment purposes and not for personal enjoyment.

Cryptocurrency: 
SMSFs can invest in various cryptocurrencies as long as the name of the trading account is in the name of the SMSF.

  

 

It's important to note that SMSFs must comply with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations), as well as any other regulations set by the ATO. These rules can change over time, and it is always advisable to consult with a qualified SMSF financial advisor for the most up-to-date information and guidance regarding SMSF investments.

Disallowed/Restricted SMSF Investments 

Personal use assets:
SMSFs are generally prohibited from investing in personal use assets that are acquired for the enjoyment or personal use of the fund's members or related parties. Examples of personal use assets include primary residences, holiday homes, motor vehicles, and boats.		 In-house assets:
SMSFs are subject to restrictions on investing in in-house assets. In-house assets are investments in or loans to related parties of the SMSF, including members, their relatives, and entities related to members or their relatives. The value of in-house assets should not exceed 5% of the total value of the fund's assets.		 Collectibles and artwork:
While SMSFs can invest in certain types of collectibles and artwork, there are strict regulations and conditions to comply with. The acquisition of these assets must be solely for genuine retirement investment purposes and not for personal enjoyment. Additionally, the assets must be stored and insured appropriately and not used by members or related parties.
Acquiring assets from related parties at less than market value:
SMSFs are generally restricted from acquiring assets from related parties at prices below market value. This prevents potential misuse of the fund for personal or related party benefits.		 Certain types of derivatives:
SMSFs must be cautious when investing in derivatives, such as options, futures, and contracts for difference (CFDs). Derivatives can be complex and risky, and SMSFs must ensure compliance with regulatory requirements and the fund's investment strategy.		 Prohibited investments:
There are specific investments and transactions that are prohibited for SMSFs. These include acquiring assets from related parties that are subject to a charge, investing in assets acquired from a related party that are not listed securities, and providing financial assistance to members or related parties.

 

It's important to note that the regulations and restrictions surrounding SMSF investments can change over time. It's crucial to seek professional advice from a qualified SMSF financial advisor to understand the most up-to-date regulations and ensure compliance with the rules governing SMSF investments.

To understand Next Step Super's role in your investment choices, please refer to the below document:

No Financial Advice Disclosure