An investment strategy is a detailed set of financial rules, behaviours or procedures which acts as a framework for a Trustee making SMSF investment decisions throughout the year. It is a guide for the trustee’s selection of an investment portfolio to increase members’ benefits for their retirement. The strategy should be designed around the current and future financial needs of the fund members and their risk adversities; some members will prefer to maximise expected returns by purchasing highly volatile investments, others will prefer to limit the amount of risk, but most will choose a strategy in between.

How does it work?

The Australian Taxation Office requires the trustees of SMSF to provide an investment strategy on an annual basis to ensure all investments continue to mirror the Sole Purpose and circumstances of the fund. SuperHelp asks you to forward us your investment strategies yearly with your documents for your Fund’s Annual Administration.

Why it is important?

It is important that the investment strategy complies with Sole Purpose test at all times. When the investment strategy begins to deviate from the Sole Purpose of the fund, such as to access funds before retirement, acquire assets for personal use or to run a business using SMSF, the fund may lose its compliance purpose and be taxed at a concessional rate higher than 15%, with penalties.

What we do:

SuperHelp reviews your investment strategy annually to ensure the Sole Purpose Test is adhered to at all times. SuperHelp specialises in the accounting and auditing of your SMSF but do not offer financial advisory services. If needed, investment guidance can be obtained from an external advisor and fees can be tax deducted.