SMSF Administration, SMSF Property, SMSF Crypto/ Gold services

FAQs – Setting up an SMSF

FAQs My SMSF
Question Answer
1. Does my fund require a bank account and how is my money protected? “As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund.”
“Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.”
“We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.”
2. Is an SMSF right for me? “The first step is to understand your responsibilities, the costs and benefits before you setup a SMSF.”
“Start by doing your research:”
“Visit the ATO site to view their new SMSF Videos.”
“Visit the ASIC Money Smart Site – SMSF Section.”
“You can decide to obtain a financial plan, by seeking advice, which will outline the benefits of SMSFs and it could determine if an SMSF is suitable for you.”
“Generally speaking, if you are looking for greater investment choice and control of your superannuation, capped dollar-based fees that are a deductible cost to your fund with asset protection, then these are some of the benefits of an SMSF.”
“If you have enough ($150,000 – $200,000) to setup a SMSF to purchase property, you receive employer super contributions (11.5%) and have over $150,000 in combined super savings (between 1-6 people) and the time and experience to make investment decisions and attend to your fund’s bookkeeping, then an SMSF could be right for you.”
3. Can I open an SMSF if I am working overseas? “For an SMSF to maintain its 15% concessional tax status and to remain compliant with the ATO, it must meet the following 3 tests:”
“1. Establishment Test – Has to be established in Australia.”
“2. Active Member Test – More than 50% of members need to be residents of Australia.”
“3. Central Management and Control Test – This relates to strategic decisions of the fund, such as formulating an investment strategy, reviewing and monitoring investment performance to name a few.”
“The super regulations allow for ‘temporary absences,’ so in the absence of any other evidence, an absence of ‘not more than 2 years’ is temporary.”
“An option is to appoint an enduring power of attorney, but this requires that one member resigns as director of the corporate trustee company and the new power of attorney replaces this person and manages the SMSF’s strategic decision-making without the influence of the departed member.”
“We suggest that you seek advice before setting up a SMSF and the best methods of managing your SMSF whilst overseas.”
4. What are the advantages and disadvantages of using individual or corporate trustees? “If you are investing in property, it is better for an SMSF to have a corporate trustee rather than individual trustees for the following reasons:”
“1. Asset protection by holding the asset in trust for the super fund.”
“2. Lower penalties – 1 x penalty fee of $10,800 instead of 2 x $10,800 if you were individual trustees and you contravened the super laws.”
“3. Borrow more from a lender with a company trustee.”
“4. Change members (add or remove) without triggering stamp duty and capital gains tax.”
“5. Moving overseas – The fund can continue with a replacement director, but an individual trustee fund would typically need to be wound up.”
“6. Compliance – Proof that assets are held separate to personal assets as the company holds the assets not members as with individual trustee SMSF’s.”
“7. Payment of benefits – Funds with Corporate Trustees can pay benefits in either lump sum or pension form. Funds with Individual Trustees must have as their primary purpose the paying of pensions only (monthly, annual etc).”
“Asset protection, (b) Borrow up to 80% (c) Gain tax concessions (d) ATO penalty fees are applied to each trustee of a SMSF. With a company trustee, you pay one penalty fee of $10,800.”
“The ATO and the SIS Act require that single-member SMSF funds must use a company to act as trustee. The longer-term benefits of having a company trustee will generally outweigh the initial extra cost.”
5. Electronic Service Address (E.S.A) / Super Stream? “Super Stream is a federal government initiative designed to reduce time, costs and improve super contribution reporting efficiencies, by adopting an electronic service address. Under the new scheme, SMSF members must provide their employers with an electronic address, e.g., SuperMate.”
“The Super Stream provider will forward your contribution data to your bank or to your administration provider. Super Stream will result in great cost reductions and less time consumed on producing paper super contribution statements, which are sent to employees and their respective super funds.”
“ATO Super Stream Web page: https://www.ato.gov.au/Super/SuperStream/
“My SMSF Property uses SuperMate – which is a free service for our clients. The Electronic service address is SUPERMATE (add this address into your accounting software or forward to your payroll).”
“For all new clients and existing clients of My SMSF who wish to rollover super into your SMSF, or out, due to a wind up, you will need to do the following:”
“1. Contact the ATO on 13 10 20 option 2 and update the following information:”
” – ESA provider to – SUPERMATE.”
” – SMSF Bank Account Details: Name, Acc No, BSB.”
“2. You may commence your rollover request via one of the following methods:”
“MyGov – Add SMSF and then verify, ESA Address, Bank Account details and rollover (OUT) or (IN) fund name: Eg: QSuper for a rollover or SMSF name for rollover out.”
“You may complete these steps on the current super provider’s site where you need to confirm ESA Provider, SMSF Name, ABN, TFN check and Bank Details.”
“You need to understand your responsibilities, the costs and benefits before you set up an SMSF.”
6. Is an SMSF suitable for us? “Start by doing your research:”
“Visit the ATO site to view their new SMSF Videos.”
“Visit the Money Smart Site – SMSF Section.”
“You can decide to obtain a financial plan, by seeking advice, which will outline the benefits of SMSFs and it could determine if an SMSF is suitable for you.”
“Generally speaking, if you are looking for greater investment choice and control of your superannuation, capped dollar-based fees that are a deductible cost to your fund with asset protection, then these are some of the benefits of an SMSF.”
“The risks are more responsibility, more administrative tasks, and no compensation for failed investments.”
“If you have enough ($150,000 – $200,000) to setup an SMSF to purchase property, you receive super contributions and have over $150,000 in combined super savings (between 1-4 people) and the time and experience to make investment decisions and attend to your funds administration tasks, then an SMSF could be right for you.”
“We recommend that you always seek advice first.”
7. Do I need to provide any identification to open an SMSF? “To establish your SMSF, your administration provider will ask you to provide 100 points of certified identification for each member and a copy of your Trust deeds title and signature pages. You do not need to provide your originals.”
“Primary Documentation”
“Birth Certificate – 70 points.”
“Passport – 70 points.”
“Citizenship Certificate – 70 points.”
“Driver’s License – 70 points.”
“Secondary Documentation”
“Medicare Card – 25 points.”
“Credit Card or Account Card – 25 points.”
“Bank Statement – 25 points.”
“Motor vehicle registration or insurance document – 25 points.”
“Utilities bills – 25 points.”
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