2. Advice Warning
This presentation is intended to provide general information
only and has been prepared by Fidelis Financial Solutions ABN
22 154 372 979 without taking into account any particular
person's objectives, financial situation or needs. Investors
should, before acting on this information, consider the
appropriateness of this information having regard to their
personal objectives, financial situation or needs. We
recommend investors obtain financial advice specific to their
situation before making any financial investment or insurance
decision.
Please note all case studies on this site are for illustration only.

3. Your Finance Adviser
Credit Representative of Australian
Credit Licence Number 389328

4. What is a
Self Managed Superfund?
A superannuation fund that is
independently established and run.
The members, as trustees, make all the
decisions about how the fund is run, the
investments it holds, and the type of
benefits it can pay.
Legal responsibility for running the
fund and complying with legal
requirements falls on the individual as
trustee.

5. The Regulator
SMSF’sare regulated by the
Superannuation Industry (Supervision)
Act 1993 (SIS Act)

6. Your Own Super?

7. Why
Manage your own super?
Less
Disadvantages
of Super
More
Advantages
of Super

8. Advantages
Why manage your own super?
0% tax on retirementii
i
1
Concessional Taxed Income
2
Flexible Investment & Asset selection
3
Controlled Investment

9. Advantages
Why manage your own super?
4
Pool Resources
5
Flexible Pensions
6
Access Centrelink Benefits

10. Advantages
Why manage your own super?
7
Transfer Owned Shares
8
Own Real Property
9
Time Value

11. SMSF’s with less than $200,000 in assets will usually incur greater
administration costs.
Increased costs for smaller SMSF funds
As you will be either the trustee of the fund or a director of a corporate
trustee of the fund, you are responsible for the administration, investment
and ongoing compliance of the fund. Any breaches of government
regulations may result in your fund’s assets and income being penalised at
the top marginal tax rate. In extreme breaches, trustees may also incur
fines or jail terms.
A SMSF has some initial set up costs that a fund does not. This can vary
depending on the complexity, purpose, flexibility and assets you intend to
hold within the fund.
1
2
Disadvantages
Reasons for not managing your own super
Set up Costs
Responsibility
3

12. Corporate, Retail and Industry funds are managed by professional fund
managers who may offer a higher level of investment experience and
expertise.
4
Investment expertise
Ongoing Management and administration of the fund’s investments can be
time consuming.5
Time
Disadvantages
Reasons for not managing your own super

13.  Do you have more than $100,000 in combined super?
(this is not a requirement)
 Do you want to control you future and investments?
 Do you need flexibility with investments and the ability to
take control of your whole portfolio?
 Are you ok with the extra responsibility?
 Are you a high net worth individual or do you own your
own business?
 Will the benefits outweigh the costs?
 Do you want to start controlling your retirement today?
Is an SMSF
Right for You?

14. Available Investments
within SMSF
SMSF
Investments
Transaction
Bank Account
Term Deposits
Online Savings
Account
Australian
Shares (CHESS
Sponsored)
International
Shares
CFDs, Options
and Warrants
Forex, Futures
and Metals
Residential
Domestic or
Overseas
Property (with
or without
borrowing)
Commercial
Australian
Property (with
or without
borrowing)
Australian and
International
Managed
Funds
Bonds and
IPOs
Others…

15. Why property?
It is a
Defensive Growth
asset
It tends to provide
strong but
Stable Returns
across all
economic cycles
Potential of
Strong Capital
growth
Provides
Diversification to
your Portfolio
as property is
unrelated to other
investment classes
you might have
As a result, it
provides the ability
to
Smooth out the
Volatility & Returns
of your wider
portfolio
Current historically
Low Vacancy Rates
Australia wide

16. How does it work?

17. Trustees
The Maze of
Superfund Loan
SMSF makes
repayment to
Bank
Bank
lends
to SMSF
Beneficial
interest
Title deed
held by
Bank
o Rent paid directly to
SMSF
o Property expenses
paid by SMSF
Limited recourse
to secured
property
Sells property to
legal owner

18. SMSF STRUCTURE
Trustee
Minimum 2
Individual Trustees
All Trustees must
be members and
all members must
be Trustees.
Corporate Trustee
The directors of a
Corporate Trustee
must also be the
members and all
members must be
the Directors.
Single Member
Funds
Generally will be a
Corporate Trustee
but in some cases
will have 2 persons
as Trustees with
the second person
either being related
to the other or any
other person who
does not employ
them.

19. SMSF LOAN STRUCTURE
Key Players
SELF-
MANAGED
SUPERFUND
THE
BORROWER
(SMSF Trustee)
THE SECURITY
CUSTODIAN
TRUSTEE
The Company PTY LTD created
to hold the property
32
1

20. 1
.
The SMSF
The Trustees are responsible to
make all the decisions
about how the fund is run, the
investments it holds, and the
type of benefits it can pay.
The members have the legal
responsibility for running the
fund and complying with legal
requirements

21. 2
.
The Borrower
(The SMSF Trustee)
The Self Managed Super Fund
(SMSF)
trustee
(either a non-trading company
or at least 2 individuals)

22. 3
.
The Security Custodian
Must be a company who
holds the property
in trust for the Trustees of the SMSF
until the loan is repaid in full.

23. Security Custodian

24. SMSF Home Loan Structure
Security Custodian
Corporate Entity
holds the property
until the
loan is repaid
Directors
purchaser
Guarantor / Mortgagor

25. SMSF
Loan
Process
Decide
if a Corporate or
Individual Trustee
Set up
your SMSF
Loan
Pre-approval
Property
Hunting
Set up Custodian
Trust before
signing the
purchase contract

26. Trustees
(You)
The Maze
Resolved
SMSF makes
repayment to
Bank
Bank
lends
to SMSF
Beneficial
interest
Title deed
held by
Bank
o Rent paid directly to
SMSF
o Property expenses
paid by SMSF
Limited recourse
to secured
property
Sells property to
legal owner

28. Maximum LVR
64%
66%
68%
70%
72%
74%
76%
78%
80%
Residential Commercial
80%
70%

29. Serviceability Ratio
Servicing
(Common Examples)
1.25x1.1x
Serviced ApartmentStandard Residential Property

30. How is
Serviceability Calculated?
i) Debt Service Ratio – (‘DSR’)
This is the ratio of your loan repayments to your gross
income
Loan Repayments/Gross Income
For most lenders this figure should not exceed 30% for
singles and 40% for couples
i) Net Debt to Income Ratio – (‘NDI’)
This is the ratio of your net disposable income to total debt
commitments
Net Disposable Income/Total Debt Commitment

32. Rental Income
Contributions
Investment Earnings
Acceptable income sources
are (most lenders assess at
80% of
total income received)
including:
Superfund Loan
Servicing

34. PAYG Contributions 9.25% SGC (Concessional)
Superfund Loan
Servicing Income
Rental Income (if serviced apartment assessed at 60%)
Additional Contributions to Super from PAYG Salary
(Salary Sacrifice Concessional)
Self Employed Actual / Proposed Contributions
(Concessional)
Non-Concessional Contributions
Super Fund Investment Earnings (from existing rent
and or calculated income from surplus shares and cash
after settlement)
3
1
2
4
5
6

36. Types of Super Contribution
CONCESSIONAL
NON-
CONCESSIONAL
2
1

37. Concessional contributions include:
• Employer contributions (including contributions made under a salary sacrifice arrangement)
• Personal contributions claimed as a tax deduction by a self-employed person.
Contributions that are
Tax Deductible
to the member from
either PAYG or from
Profit on Business
PAYG /
Profit
Tax%
Concessional Contribution

38. Concessional Contribution - Limits
• $35,000 per member per annum
(unindexed)
Aged
60 and over
• $25,000 per member per annum
(indexed)
Aged
under 60

39. Income
Tax%
Non-Concessional
Contributions that
Income Tax
has been paid
(more popularly known as
after-tax contributions)

40. Non-Concessional Contribution -
Limits
•$150,000 per annum per person; or
• Members may bring forward a
maximum of $450,000 in any
3 years period.
Aged
under 65
If you’re under the age of 65, you can bring forward up to three years’ worth
of non-concessional contributions, which means you can make up to
$450,000 in super contributions in one year, representing your non-
concessional (after-tax) cap over a three-year period. Please consult your
financial planner before making any super contributions.

42. Non Recourse Loan
The structure used is an approved Non-Recourse Structure that limits
the banks recourse to the property being purchased and personal
guarantees if required.
The bank has no right of recourse over any other asset contained within
the SMSF structure.
However, if the loan is approved subject to Personal Guarantees from
the members then the bank will have right to seek recourse from the
members personal assets.
3
1
2

43. Banks will require a personal guarantee in all cases apart from when they
are using the SGC 9.25% for PAYG employees together with confirmed
rental from the proposed purchase.
Hence if any income, such as Non-Concessional contributions / Salary
Sacrifice contributions / Investment Income / existing Rent etc. , is used then
Personal Guarantees will be required.
Additional contributions are made to above the SGC level
(currently 9.25%) and the rental from the property being
purchased to service the loan.
Members are self employed
There is a Corporate Trustee – the Directors guarantees
are required.
1
2
i
ii
iii
Personal Guarantees
Examples of when Guarantees will be required:3

44. • Refinance of existing SMSF Loan
from any external institution
• Loans secured by a first mortgage
only
Available
Finances for:

46. Owner occupied
residential property
Specialised security
e.g. Retirement Village units or
holdings
Company &
Stratum title
Vacant Land
Any asset not
acquired
with the Loan proceeds
Second Mortgage or
subsequent mortgages

47. Properties on land
exceeding 2.5
hectares
Property
development &
Construction Loans
(under LRBA)
Properties located in
Non-Prime Lending
Area or Broken Hill (NSW)
Off the Plan Purchases, unless
occupation Certificate or equivalent
has been issued and the title and
or Strata has been registered.
Cash Deposits
Non
Residential, industrial
or commercial
properties

48. Some of Our Lenders
More than 25
banks to
choose from

49. Fidelis App
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tools and resources at
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50. Earn $200
for every new home loan client
you refer to us!

52. Make your FREE appointment today
Credit Representative of Australian
Credit Licence Number 389328

53. 1300 764 247
finance@fidelisfinancial.com.au
www.fidelisfinancial.com.au