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What you should know about  six member SMSFs



What you should know about six member SMSFs

Since the SMSF member limits recently increased from four to six, larger families may be considering having one large superannuation fund for all family members.

Interestingly, recent ATO statistics tell us that the SMSF population comprises of 24% single member funds and 69% two member funds and the balance are three-member funds (3%) and four-member funds (4%). These statistics indicate that more than 93% of SMSFs have two members or less, so it is unlikely the increase in SMSF membership will affect many SMSFs.

However for some larger families, it does have the potential to make a difference, giving them additional flexibility and choice.

Although it may seem like the classic case of ‘the more the merrier’, there are many considerations for those thinking of bringing family members into their SMSF. Consider the following key pros and cons of having more members in an SMSF.

The Pros

The Cons