Young People and SMSFs

So im starting to lean towards esuperfund, considering its free to startup until june 30. With them are you allowed to take delivery of physical metals? Im pretty sure ive read on here that yes you can, you just have to confirm its safely stored and whether or not its insured. Id most likely keep it in unallocated until i hit the limit and then id take physical delivery to free up some more space for unallocated or something like that.
Does this sound like a good idea?

Thanks.
 
Fykus, yes you can buy PM with esuperfund - The SMSF group you recently joined :cool: has some notes in the minutes about this but basically you need to have a strategy re insurance and location - doesn't mean you have to insure or advise location, just that you've thought about it and minuted it all.

All in all, reading the thread, I personally think esuperfund is the way to go for you.

Happy to sit down with you over a beer one day and answer what I can as best I can if that helps :) (no financial/legal advice of course!)
 
Id take you up on that beer but i live in nsw, but if i head up that way ill give you a yell. Hope you dont mind me joining the group, i just thought itd be a good way to gather some more info/opinions (not advice :p ) on how to do my smsf.
 
Hmmm, just looking at esuper setup process. It looks like its for a non coporate trustee, is that right? Will I need to get a company registered before going through with signing up to esuper?

thanks.
 
Fykus said:
Hmmm, just looking at esuper setup process. It looks like its for a non coporate trustee, is that right? Will I need to get a company registered before going through with signing up to esuper?

thanks.
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No you can do both, but you need to set up the company seperatly.

Unfortunately ESUPERFUND cannot setup a Company for clients. However if you do not have an existing Company to act as the SMSF Trustee, but would like to establish a Company to act as Trustee for your SMSF, this can be done with any firm that establishes companies. A popular site used by our clients to establish a company for their SMSF is Cleardocs. Cleardocs company establishment service can be found here. Once you have established a company and the company has been issued with an ACN, you can proceed to our online application to establish your SMSF here .
 
There's a bunch of companies that can set up the company .... also a huge range of options other than esuperfund regarding establishing and/or administering your fund ... this link might help (fwiw after checking nearly every company on that list I'll still be using esuperfund for the fund and ecompanies to set up the company)
 
The company that is acting as trustee of the trust (super fund) is not required to have a TFN or ABN. It is also not required to lodge a tax return. You will need to pay the $226.50 a year to have a registered company though.
 
So im considering salary sacrificing some of my pay each week. Just wondering when the payments have to be made into my smsf? Is it whenever im paid, or whenever my employer pays tax to the ato considering im sacrificing part of my tax?

Any info would be appreciated.
Thanks.
 
If you salary sacrifice, your super contribution (the sacrificed component) is paid by the employer at the same time, and is treated as, an employer contribution. So it is paid at the same time and along with your usual super payment by your employer.

You should also check that if you sacrifice your employer will still pay their contribution on your pre-sacrificed salary amount - see this post for a detailed description. Most employers will pay on the pre-sacrificed amount but you should not just assume your's will - better to check and confirm first rather than assume and cry later.
 
Fykus said:
So im considering salary sacrificing some of my pay each week. Just wondering when the payments have to be made into my smsf? Is it whenever im paid, or whenever my employer pays tax to the ato considering im sacrificing part of my tax?

Any info would be appreciated.
Thanks.
Click to expand...

When I did it it came out each pay cycle.

Can I ask why you want to do it though? Contributing extra to your super is just locking away funds that could be put to better use now eg buy bullion, pay off debt, save for a holiday, build a war chest for unforeseen circumstances. I'm not a fan of salary sacrificing into super.
 
Just thought it might help me get a bit more in there to buy silver with, and i was thinking about putting in just enough so that im knocked back down into the lower tax bracket.
 
Fykus said:
Just thought it might help me get a bit more in there to buy silver with, and i was thinking about putting in just enough so that im knocked back down into the lower tax bracket.
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:) ok, but it's worth is still inaccessible to you until retirement age. Unlike if you use your own post tax funds to buy silver for your private use.

One of your goals is to reduce the tax payable on your income and salary sacrificing is a tool used to achieve this purpose. However by salary sacrificing your extra super contributions, you are only benefiting one way ie saving tax. Have you considered other forms of salary sacrificing that will achieve the desired effect of paying less tax BUT also other benefits? For example depending upon your employer you can salary sacrifice a host of items that you have to pay for ordinarily out of your post tax salary and you will get a double benefit - save tax and still get the benefit now. Eg:

Loan repayments
Rental payments
Salary Solutions Card (expense payments / bills)
Laptop computer and Mobile Devices (PDAs, Mobile Phones)
Motor Vehicle
Regular Payments.
You can have your regular expenses paid on your payday.
Mortgage payments
Rent payments
Loan repayments
School fees
Salary Solutions Card.
Offers a flexible and convenient option to allow you to pay your everyday expense payments and bills including:

Utility Bills (gas, electricity, council etc)
Supermarkets
Retail stores
Petrol
Entertainment
School fees
Insurance premiums

Many of these items above may be things you have to pay for, salary sacrificing them may make better financial sense than super.

Now you're only a kid still, so you won't hopefully have school fees etc, but get your SMSF organised, and while you are waiting you will need to talk to a financial adviser about salary packaging - your employer may have a list of preferred advisers.

Edited to get rid of the spiel from the website I nicked this from :D
 
mmm....shiney! said:
Loan repayments
Rental payments
Salary Solutions Card (expense payments / bills)
Laptop computer and Mobile Devices (PDAs, Mobile Phones)
Motor Vehicle
Regular Payments.
You can have your regular expenses paid on your payday.
Mortgage payments
Rent payments
Loan repayments
School fees
Salary Solutions Card.
Offers a flexible and convenient option to allow you to pay your everyday expense payments and bills including:

Utility Bills (gas, electricity, council etc)
Supermarkets
Retail stores
Petrol
Entertainment
School fees
Insurance premiums

Many of these items above may be things you have to pay for, salary sacrificing them may make better financial sense than super.
Click to expand...

I know about Salary Packaging/Solutions Cards and how tax-effective they can be. Wouldn't some of the others potentially attract Fringe Benefit Tax?
 
mmm....shiney! said:
Fykus said:
Just thought it might help me get a bit more in there to buy silver with, and i was thinking about putting in just enough so that im knocked back down into the lower tax bracket.
Click to expand...

:) ok, but it's worth is still inaccessible to you until retirement age. Unlike if you use your own post tax funds to buy silver for your private use.

One of your goals is to reduce the tax payable on your income and salary sacrificing is a tool used to achieve this purpose. However by salary sacrificing your extra super contributions, you are only benefiting one way ie saving tax. Have you considered other forms of salary sacrificing that will achieve the desired effect of paying less tax BUT also other benefits? For example depending upon your employer you can salary sacrifice a host of items that you have to pay for ordinarily out of your post tax salary and you will get a double benefit - save tax and still get the benefit now. Eg:

Loan repayments
Rental payments
Salary Solutions Card (expense payments / bills)
Laptop computer and Mobile Devices (PDAs, Mobile Phones)
Motor Vehicle
Regular Payments.
You can have your regular expenses paid on your payday.
Mortgage payments
Rent payments
Loan repayments
School fees
Salary Solutions Card.
Offers a flexible and convenient option to allow you to pay your everyday expense payments and bills including:

Utility Bills (gas, electricity, council etc)
Supermarkets
Retail stores
Petrol
Entertainment
School fees
Insurance premiums

Many of these items above may be things you have to pay for, salary sacrificing them may make better financial sense than super.

Now you're only a kid still, so you won't hopefully have school fees etc, but get your SMSF organised, and while you are waiting you will need to talk to a financial adviser about salary packaging - your employer may have a list of preferred advisers.

Edited to get rid of the spiel from the website I nicked this from :D
Click to expand...

Please point me to the employer who will let me salary sacrifice for my ppor mortgage!!!!!
 
Queensland Government are very good for salary sacrificing quite a few things if I remember rightly, they use it for recruitment to lure you in.
 
Roswell Crash Survivor said:
I know about Salary Packaging/Solutions Cards and how tax-effective they can be. Wouldn't some of the others potentially attract Fringe Benefit Tax?
Click to expand...

Wouldn't have a clue :)

ShinyStuff said:
Please point me to the employer who will let me salary sacrifice for my ppor mortgage!!!!!
Click to expand...

Work for a public hospital. You deserve a good salary package for that.
 
Just watch out for the Fringe Benefits Tax (46.5%) paid by your employer. If your not in the highest tax bracket already FBT is applied to all non exempt expenses. (In the highest tax bracket whats it really matter apart from the benefit of reducing your overall taxable income.) Exempt items are usually 'one offs' each year like a laptop, a digital camera, a brief case, personal protection equipment & tools of trade. (a complete list is here: http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/950.htm&page=4&H4 & http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/950.htm&page=4&H4) Basically speaking an employee who wants to salary sacrifice for things like rent payments would be required to include, in the value of the benefit, the amount of FBT payable by the employer, and given that the tax is set at the highest marginal rate of tax, 46.5%, that really isn't a viable option for the employee. I really don't know a lot about this apart from looking into it myself once. For those thinking of salary sacrificing a mortgage here is another link on the subject of salary sacrifice & mortgages:
http://www.quinns.com.au/Editorials/YIP18-Salary-sacrificing-your-rental-expenses.pdf

Hope my links work this time, apologies in advance if the don't. (I still can't figure out how to edit a post :P
 
Thanks for the advice, ill take a look into all these other options you've mentioned.
Cheers
 
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