I have just set up my own business, what’s the best way to choose a superannuation fund. What questions do I need to ask?

Hi Ingrid,

Do you have an existing super fund? I’d start there if you do.

Otherwise look for something that is low cost, all super funds advertise their fees on their website. Then looks at the past performance of the investments.

As they always say past performance is no indication of future performance but you don’t have much else to compare them on.

If you’re just starting out with superannuation it’s unlikely you’ll anything more complicated than one of the big retail superannuation funds. Later down the track an SMSF together with your own business can be a very powerful combination if used correctly.

All the best.
James

Hi Ingrid,
Is this for you to contribute for employees or for yourself? If it is for yourself, you can start by just contributing to your existing fund. If it is for employees, you can pay into their existing accounts as well.
If you are starting a new fund for yourself or an employee, I would choose Hostplus or an industry fund for your business. They have very low fees and are easy to deal with as well as having performed very well over the last 5 and 10 year terms.
Best of luck
Scott

https://www.ato.gov.au/Super/SuperStream/

go to this link. As an employer you have obligations to report AND pay super on time. It doesnt matter what business structure you use, YOU are PERSONALLY liabile for the super payable in respect of the employees of the business.

The ATO set up the Super Stream reporting regime to assist them in identifying who is actually paying super for their employees and who is not.

make sure that you dont fall into the "not" catagory, because there is no amount of "oops I forgot" or "cash was a bit tight, and I'll catch up next quarter" that the ATO will tolerate in respect of employers seeking to avoid their super obligations. And they really should go hard on people who dont pay super.

I wont get on my soap box today about how much impact this has on a persons retirement, but it is HUUUGE!

so, if you have an accountant, get them to lay you out a business plan that takes into account all the stuff that no one considers:
- super
- workers comp
- income protection
- public liability
- GST
- PAYG Instalment system
- managing staff
- managing clients
- handling business growth
- budgeting
- cashflow
- tax
- bookkeeping
- KPI
- borrowing for the business
- borrowing FROM the business
the list goes on....

get yourself hooked up with a GOOD accountant to help you manage your business. Remember that you need to get THREE things out of a business:
1: at least the same wage you would earn as an employee
2: a commercial return on your investment
3: an entreprenuerial "reward" for taking a risk and betting on yourself

if you are not getting those three things, you are making a lifestyle choice, and you may not be super-excited about what the future holds for you.

sorry to sound all doom and gloom, Ingrid. I see too many people who get stars in their eyes and forget to do the groundwork and the results for them are rarely worth the effort.

If, however you do your homework, get a plan and make your business work for you, then potentially you can have both the lifestyle and the financial reward you deserve.

good luck with it:):)

bc