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Please see below contact details for all our member firms or for more information about your local MGI firm click on the relevant website links to get further details.

For all enquiries relating to MGI Australasia, please contact our Regional Director, Caterina Sullivan.

Our Offices

MGI Adelaide

212 Greenhill Road,
Eastwood SA 5063

PH: +61 8 8299 8888

Fax:

http://www.mgiadelaide.com

MGI Auckland

Level 2,
Fidelity House,
81 Carlton Gore Road,
Auckland

PH: +64 9 377 1362

Fax:

www.mginz.co.nz

MGI Cairns

225 Sheridan Street,
Cairns North

PH: +61 7 4047 4000

Fax:

http://www.mgicairns.com.au

MGI Joyce|Dickson

Level 1
65 Canberra Avenue,
Griffith ACT 2603

PH: +61 2 6162 2600

Fax:

http://www.mgijd.com.au

MGI Gold Coast

Ground Floor,
64 Marine Parade,
Southport, QLD 4215,
Australia

PH: +61 7 5591 1661

Fax:

http://www.mgisq.com.au

MGI Parkinson

Level 1,
322 Hay Street,
Subiaco, WA 6008

PH: +61 8 9388 9744

Fax:

http://www.mgiparkinson.com.au

MGI South Queensland

Level 1,
200 Mary Street,
Brisbane, QLD 4000,
Australia

PH: +61 7 3002 4800

Fax:

http://www.mgisq.com.au

MGI Sydney

Level 5,
6 O'Connell Street,
Sydney, NSW 2000

PH: +61 2 9230 9200

Fax:

www.mgisyd.com.au

Dobbyn + Carafa

Level 9,
636 St Kilda Rd
Melbourne VIC 3004

PH: +61 3 9069 7700

Fax:

www.dobbyncarafa.com.au

Enquiries

Want to “upsize” your Self-Managed Superannuation Fund (SMSF)?

Effective 1st July 2021 the maximum members for an SMSF has increased from four to six!

Benefits

In short, additional flexibility and choice. Specifically:

· Lowering of costs – an SMSF typically has fixed administration and operating costs (eg. accounting, audit, legal & actuarial fees) whereas Industry & Retail Superannuation Fund’s charge on a percentage of the account balance.

· More effective taxation outcomes – a pension member can use their franking credit tax refund to offset the tax on the accumulation member’s contributions.

· Greater Investment Opportunities – pooling up to six people’s Superannuation together increases the investment options. The higher fund balance may allow the acquisition of a large / lumpy asset (eg. Real Estate), increase access to unlisted / sophisticated investments and may also allow for more effective diversification of assets.

· Education & Financial Literacy – allows for educated and experienced investors to run and make decisions with less experienced investors, passing on knowledge.

Some Practical Applications of Six-Member SMSF’s

· A successful business with six owners wishes to acquire a non residential property within Superannuation. The six owners could establish a six-member SMSF to facilitate the acquisition of the property. The business could then lease the property from the SMSF on arm’s length and market terms.

· Mum & Dad have three children and wish to assist and guide them to build their own wealth. The three children are admitted as members of the SMSF and together with Mum & Dad they are responsible for the day to day operation and investment decisions of the SMSF.

· Two children and their spouses have recently taken over the family farm. One of the lots that the farm operates from is owned in their parents’ SMSF which they wish to pass onto their children as part of their estate planning. The two children and their spouses are admitted as members of this SMSF, bringing the total members to six. They rollover and contribute to the Fund, whilst Mum & Dad draw down a pension. Over time, as Mum & Dad’s wish of the property going to their children as part of their estate has been achieved as their reduced balances effectively pass the farming land to their children now.

What are the risks?

· All members must be trustees and they are all jointly and severally liable for the operation of the SMSF. So if one trustee accidentally withdraws money from the SMSF bank account and is reported as a breach by the SMSF’s auditor, then all trustees are jointly liable for the repayment of the amount and any penalties imposed by the ATO.

· It can be difficult to split in the event of a relationship or business breakdown, especially if a large proportion of the SMSF is held in real property. Remaining members may need to make contributions or be forced to sell the asset. Agreements put in place at the time that the six-member fund is created can mitigate these risks.

What hasn’t changed?

All members must also be trustees or directors of the corporate trustee, so any new members are responsible for the day to day running and operation of the SMSF.

A corporate trustee is likely to be required for six-member SMSFs. For example, in Western Australian law regulating the maximum number of individual trustees has not changed. This remains at four, so any SMSF that is established and controlled in Western Australia will be required to have a corporate trustee (with each of the members being Directors).

Summary

Overall, the six-member SMSFs have increased the opportunities and lowered costs for family groups and small to medium enterprises in relation to their Superannuation.

If you would like more information or application to your circumstances, please contact Rocco Fazari or Brenton Burke at the MGI Parkinson office on (08) 9388 9744 or via info@mgiparkinson.com.au.

MGI Perth Financial Services Pty Ltd is a Corporate Authorised Representative No. 1245590 of the SMSF Advisers Network Pty Ltd, ABN 64 155 907 681, AFSL No. 430062