SMSF Q&A’s

There are many questions on Self Managed Superannuation Funds (SMSF). The best place to look is generally on the ATO Website. The ATO is the regulator of SMSF’s, so its best to get is straight from the horse’s mouth.

Our website is also a rich source of SMSF information. Here’s some SMSF FAQ’s, so please click on it to see the answers. Feel free to contact us if you can’t find the questions you are after.

FAQ’s

1. I am starting a SMSF and would like to know the benefits in using a Corporate Trustee as opposed to individual Trustees?

2. Can personally held shares be transferred to my SMSF? What are the rules for transferring assets into a SMSF?

3. What are the maximum SMSF contributions I can make to my SMSF in the current financial year?

4. What is the Transition to Retirement pension and when can I start this?

5. Who can certify documents, for example when the bank or stock broker asks for certified documents?

6. Is the monthly $39 fee inclusive of ALL fees (including annual audit and tax return submission)?

7. How long does it take to set up the SMSF?

 

And here are more Questions and Answers:

1. What is the difference between the $39 and the $79 service and why is it a low price. Will I receive a sub-standard service?

The reason Superannuation Warehouse can offer the SMSF service at a low price is that our system is specifically written to pick up these files in an electronic format and then do accounts and the tax return in a paperless format. For a simple fund with just bank accounts we charge a lower accounting and administration fee compared to a more complex fund investing in investment properties, share derivatives and FX.

2. Do you provide monthly or quarterly or just annual accounts, would it be less cost if we only required quarterly accounts or just annual?

Superannuation Warehouse provides annual accounts.

3. Do you require all original docs, many of these are now provided by e-commerce or over the web, is that an issue?

You keep all original documents. Our preference is to receive statements soft copy. This means we can load it directly into our accounting system to produce your SMSF annual accounts and tax return. This also means we do not have to re-key your data and this improves accuracy.

4. Are the originals retained at your office or returned once the accounts are completed.

We have a copy of your accounts on a paper format as well as soft copy at our office. All source documents e.g. bank statements etc would be kept by you as responsible Trustee of the SMSF. We require copies only, and the best option is a soft copy or scanned copy emailed to us.

5. We will want to include overseas listed equities in our super to get an International flavour and diversification to our investment would this have any cost issues. We are talking major markets LSE, NYSE for example, we are talking no more than 20 overseas investments, which may give rise to 50 transactions.

Fixed price for any investments you choose in your Fund. If there’s only a few transactions, a scanned copy of a statement will be sufficient, but we prefer soft copies, especially with higher volumes. Most providers will supply you with a soft copy to download.

6. I see you also have a pre pack SMF setup, is any of the above NOT COVERED in the Trust deed you would normally setup? I am thinking particularly the overseas investments.

The Trust Deed and Investment Strategy that we will supply you with when the SMSF is set up are fairly wide. It covers local and international investments and include shares, options, CFD’s, property etc. We give you this template in Word format, so you can edit and adjust this in the rare occasion that it does not cover what you intend to invest in.

7. We are currently in the accumulation phase but my wife and I will be 65 in 2012, what impact to costs will the establishment of an Annual pension (1 payment per annum X 2 pensions) have?

We have a template where the Trustees note the amount allocated to a pension. From an accounting and tax point of view the only difference is that you are not taxed at 15% but at 0%. So it actually makes our job easier. There’s no extra cost to set up a pension or draw a pension. Our fees are fixed. You do the draw down and generally draw down 4% of the pension opening balance per year.

8. Is the SMSF name “ABC Family Super Fund” or “The trustee for ABC Family Super Fund”?

The name of your SMSF is ABC Family Super Fund. When the ATO sends correspondence to you, they always address the Trustees of the SMSF. The SMSF are the Managers or custodians of the SMSF and responsible for running the SMSF, hence the name the ATO uses “The trustee for ABC Family Super Fund”.

 

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