The first major risk is non compliance and mismanagement. So, if you use your self managed super fund property for purposes other than what it’s designed to be used for, which is solely to invest and to create funds with which you can live on after you finished working, then that can be met with things like fines, you can be disqualified or you can have your fund entirely closed by the ATO or by ASIC, whichever body is governing the rules in which you’ve breached. Other risks to a self managed superannuation fund is they are predominantly used for the purchase of Australian residential properties or Australian properties entirely like commercial and residential.

Firstly the SMSF itself does have some ongoing costs, like a registration fee to ASIC (Australian Securities and Investments Commission) so you are able to register your business that is the Superfund. Also you do have an accounting and auditing cost which you must do at least once per year, and then submit your tax returns to the ATO. Outside of that the costs are then variable, you can choose to engage a financial planner or a financial advisor, with whom, unlike ourselves here at Corbwood & Associates may charge a high fee. You could also decide to take onboard investments such as a property that would then of course have buildings insurance, Council and water rates which are usually considered as a portion of the rent being the income that you are receiving from the property. We have gross rent, then minus those costs will create your net rental income to the fund.