SMEs turning to SMSFs for flexibility
Small to medium-sized (SME) business owners are increasingly turning to the self-managed superannuation fund (SMSF) avenue as they doubt whether their super will go the distance in retirement.
This is according to RSM Bird Cameron's thinkBIG 2014 study, which showed 48 per cent of SME owners currently have an SMSF, up from 45 per cent in 2013 and 36 per cent in 2012.
RSM Bird Cameron's national head of business solutions Andrew Graham said SME owners find SMSFs appealing due to its flexibility and control.
"With continual tightening of the age pension and health care card systems, people need to be more proactive and in control of their retirement destiny, which may be driving them to SMSFs," he said.
The study, which surveyed 504 business owners, showed satisfaction with super planning provisions is falling.
"This reflects the continued changes in taxation of superannuation. While contribution caps have finally increased, the constant changes to superannuation laws and proposed changes to the age pension undermines people's confidence in the system as a whole," Graham said.
He added that many people do not seem to grasp the importance of super as a tax effective savings option, adding that while things do change, the effectiveness of super for concessional tax treatment will remain.
"For most, income derived from superannuation in retirement will prove to be a much better tax outcome than holding equivalent investments personally."
AUTHOR
Malavika Santhebennur
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