The common rail fuel injector system is a direct fuel injection system that is basically an upgraded version of the direct fuel injection system previously used in petrol and diesel engines. The name ‘common rail’ is used because the fuel injectors are supplied with fuel by a single fuel rail whose purpose is basically to accumulate pressure where the fuel is stored. The common rail system helps reduce exhaust emissions, makes fuel cleaner and more efficient, lessens engine noise, and is more powerful than the injector systems they replace.
The common rail injector system is used in gasoline direct injection for modern two and four-stroke gasoline-run engines, but is more popularly used in diesel engines; in gasoline engines, the gasoline is pressurized and injected into the combustion chamber in each cylinder by the common rail fuel line. In diesel engines the high pressure fuel rail line feeds individual solenoid valves. Newer common rail diesel systems now use piezoelectric injectors (injectors that can generate an electric field when mechanical stress is applied to them) which results in increased precision and higher pressure. The common rail system was first developed by Robert Huber in Switzerland in the 1960’s and was then further developed by Dr. Marco Ganser. The first time that the common rail system was successfully used was in Japan in the 1990s by Dr. Shohei Itoh and Masahiko Miyaki who developed the system for use in heavy duty vehicles and first mounted it on a Hino Rising Ranger truck which was sold in 1995.
There are approximately one million Australians who are currently managing their own SMSF. This figure is increasing dramatically each year and there is a reason for it. A SMSF has a number of specific benefits other Superfunds do not provide. Consider the benefits below.
Benefit 1: Control
An SMSF gives you total control of your Super by allowing you to choose where you invest your Super Benefit. Invest in Shares, Property, Term Deposits, Cash, CFDs and more! The Investment Choice is entirely yours (noting our list of Allowable Investments here)! Many clients who are disappointed with their Superfund s performance or simply think that they can do a better job investing their Super Benefit themselves are choosing to establish and manage their own SMSF. A SMSF puts you in TOTAL CONTROL of your financial future, where you decide how your Super Benefit is invested not the so called professionals more concerned with their bottom line than yours.
Benefit 2: Lower Fees
SMSFs can be the most cost effective type of Superannuation Fund, particularly considering ESUPERFUND s low annual fee of $699 fixed irrespective of your Super balance. This means that the percentage cost of running a SMSF actually falls the higher your Superannuation balance grows. This is unique in comparison to other Superannuation Funds whose fees increase as your Superannuation balance grows. For example, a Superannuation Fund charging 1% in fees will double their fees from $2,000 to $4,000 per annum when your Super Benefit doubles from $200,000 to $400,000. ESUPERFUND s Fee remains fixed at $699 when your Super Benefit doubles from $200,000 to $400,000. This represents a Fee Saving of up to 80%!
Benefit 3: Add thousands to your Final Super Payout
Consider that an average retail Superfund can charge up to 2% pa in fees and that you will pay around $500,000 in fees over your working life. With ESUPERFUND s fixed annual fee of $699 (even indexed for inflation) you can expect to pay closer to $60,000 in fees over your working life. That s a fee saving and extra Super in Retirement of over $400,000! The earlier you start the more you save. It really is amazing! For more on how fee savings can affect your final super payout click here.
Benefit 4: Ownership
Imagine waking up nearing retirement and being told you cannot access your Super Benefit to fund your retirement. It can happen. In fact a recent analysis indicated that sometime in the near future major Retail and Industry Superfunds will experience payout difficulties due to insufficient liquidity as baby boomers begin to retire and worker contributions are insufficient to meet retiree withdrawals. This will mean "frozen Superfunds" which occurred in the recent Global Financial Crisis will become more normal as time goes on. The reason that this can occur is that you are not the owner of the assets in a retail and industry Fund. You simply have an entitlement in the Fund assets as a Member. Think about that. You don t actually legally own the assets in the Superfund and are at the mercy of the Fund Trustee to ensure the Fund is managed appropriately to pay your Super Benefit. It may be that this risk is exaggerated but it is a risk nonetheless you can do without. A SMSF eliminates this risk entirely. Why? Because in a SMSF you are the owner of all SMSF assets and you decide when you can access your own Super Benefit. A SMSF is the only Fund type where you own the assets that make up your Super Benefit. For more on this issue view our article "A New Threat Emerges" here.
Benefit 5: Consolidate Multiple Member Accounts
A SMSF allows you to consolidate your family or friend s Super Benefit under one SMSF. A SMSF can have up to 4 Members and each of these Members can contribute to the one SMSF. This means that instead of each Member paying separate fees in their Fund (or in multiple Funds) you can Rollover and consolidate 4 persons Super Benefits, which can then be managed under the one SMSF. Importantly, whether your SMSF has 1,2,3 or 4 Members our annual fee does not change!
Benefit 6: Accumulation and Pension Fund in one
With Retail and Industry Funds your benefit is typically invested separately in a Pension or Accumulation Account. This means that when you wish to drawdown your Super Benefit as a Pension your Super Benefit will need to be transferred to a separate Pension Account and any additional contributions you make will be added to a completely separate Accumulation Account. Each Account is managed separately with separate investments and a separate fee structure. Usually the more Funds you have the more fees you pay! A SMSF is a Pension and Accumulation Fund in one. You can commence a Pension and continue contributing to the same SMSF. There is no need to split your Super Benefit into multiple Funds. ESUPERFUND can track each account as part of the annual compliance process. Importantly even if you have a Pension and Accumulation Account Balance our annual fee does not change!
Benefit 7: Taxation Benefits
When you commence a Simple Account Based Pension or Transition to Retirement Pension, the SMSF tax rate falls to NIL on earnings and capital gains. This means that you can generate unlimited income and capital gains and will pay no tax on them. This also means that your SMSF is entitled to receive any franking credits on Australian Share Dividends in cash from the ATO. Franking Credits simply represent tax paid by Australian companies on dividends your SMSF is receiving. Given that the company has paid 30% tax and your SMSF tax rate in pension mode is Nil, the entire 30% tax paid is refundable to your SMSF. Example: For every $10,000 received in fully franked dividend income, your SMSF receives $4,285 as a cash refund from the ATO each and every year the dividends are paid, after you commence a Pension! This is not the same in Retail and Industry Superunds that can decide how to allocate the tax refund or retain it if they choose. This is because the refund belongs to the Superfund and the Trustee of the Fund has discretion on how the tax refund will be applied.
Benefit 8: Consolidate Investments
Members of a SMSF traditionally make contributions in cash. However it is possible for Members to make contributions of assets into a SMSF instead of cash (called in specie contributions). Importantly only certain assets listed in the super regulations can be transferred in specie by a Member to a SMSF, such as Shares, Managed Funds and Commercial Property. If not specifically listed in the super regulations, it is illegal to transfer assets owned by a Member into the SMSF as a contribution. Residential Property is specifically excluded and cannot be transferred from a Member to a SMSF. Notwithstanding this, in specie transfers allow you to consolidate your Family Assets under the one SMSF tax advantaged umbrella. We note that taxation and capital gains tax issues should be considered and these are considered here.
Benefit 9: Succession Planning
A SMSF allows you to conveniently and legally pass a Members Super Benefit to their beneficiaries in the event of the Members death. This can keep your SMSF assets under the same SMSF tax advantaged umbrella even after a Members Death. http://www.esuperfund.com.au/
A SMSF is your own personal Superannuation Fund that gives you total control over how your Super Benefit is invested. An SMSF is perfect for the DIY Investor who prefers to make their own Investment Choices for their retirement rather than leave their Superannuation to be invested by others.
Who Controls a SMSF?
The Trustees control the SMSF and make all the Investment decisions for the SMSF. The Trustees are also responsible for complying with all legal obligations including ensuring that the SMSF prepares and lodges an annual tax return with the ATO. It is important to understand that the SMSF Trustees do not own the SMSF assets but are simply responsible for the administration, investment and operation of the SMSF.
Who Owns the Assets in a SMSF?
The Members own the SMSF. Importantly the SMSF Members have a proportional Interest in the SMSF assets based on contributions and Rollovers made to the SMSF. This means that if one Member contributes 100% of monies to the SMSF and a second Member contributes no monies, then the Member making the total contributions to the SMSF will own 100% of the SMSF. SMSFs can have a maximum of 4 Members who must all be Trustees.
Investing in accordance with Super Laws
Under the ESUPERFUND Platform you can only invest in Allowable Investments as detailed on our website. The Investments allowed under the ESUPERFUND Platform are extensive and cover all asset classes. By specifying what Investments your SMSF can invest in and also assisting in the setup of the accounts in most cases, ESUPERFUND ensures that your SMSF is always compliant with Super Laws. Details of Allowable Investments can be found here.
You must not take your Super Benefit unless you meet a Condition of Release
When you establish a SMSF with ESUPERFUND you are in full control of all the Investment decisions of the SMSF. This means that you have full access to the SMSF Bank Account established for you with the ANZ Bank as part of the SMSF Setup Process. As an SMSF Trustee you must ensure that Super monies are only invested for your retirement and not illegally accessed by you to be used for personal purposes. You can only access your Super Benefit for personal purposes when you meet a condition of release such as "Retiring" or reaching at least age 55. ESUPERFUND provide education to all clients to avoid accessing your Super Benefit before you are legally allowed. For more click here.
Investing in accordance with the SMSF Investment Strategy
Prior to Investing your Super Benefit, it is a requirement under current Super Laws that a SMSF formulate and give effect to an investment Strategy. An Investment Strategy is simply a plan for making, holding and realising SMSF Investments that reflects the SMSF s Objectives (eg increasing the value of all Members Benefits). ESUPERFUND ensure you meet this requirement by providing a Standard Investment Strategy for your SMSF as well as extensive education. For more click here.
The rules of a SMSF are contained in the Trust Deed
The rules of a SMSF specifying what the SMSF can and cannot do are outlined in the SMSF Trust Deed. When you apply to establish an SMSF we will mail to you an "Establishment Package" including the SMSF Trust Deed for your review. You have one month to review the Establishment Package and the Trust Deed to ensure that it meets your expectations. The Trust Deed provided by ESUPERFUND is expertly drafted by Maddocks Lawyers and is fully up to date allowing you to do all things allowed by current Super Laws.http://www.esuperfund.com.au/
Specialist diesel injection Services is a family run business dedicated to providing the very best service and products. We have a Diesel Servicing centre based in Accrington. We ship diesel pumps and diesel injectors throughout the UK and all over the world.
We sell our diesel fuel pumps and diesel injectors on a exchange basis, please see the surcharge policy for further details or please contact us directly on 01254 388850 if you require further information.