All Topics / Legal & Accounting / Documentation for SMSF

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  • Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    Hi guys,

    Has anyone had much experience with setting up a SMSF?

    I am relatively new to this, and the main reason I would like to set it up is to invest in Steve's USA Property Fund

    So far I've setup a company online to act as corporate trustee for the SMSF, and am awaiting for esuperfund.com to process my application which could take up to 4 weeks

    NAT13080 form requires the following documentations:

    • a letter from the trustee stating that this is a complying fund, or retirement savings account (RSA) or, for a self managed superannuation fund, a copy of documentation from the Tax Office confirming the fund is regulated
    • written evidence from the fund stating that they will accept contributions from my employer, and
    • details about how my employer can make contributions to this fund

    What I am unsure about is who will be generating these documents and how to do so? I.e. if I am responsible for writing the letter, how would I word any declarations made, as director of the company acting as corporate trustee for the SMSF?

    "I John Smith, director of ABC Pty Ltd, declare that JS SMSF is a complying fund"?

    Many thanks,

    Kong

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    I had my accountant set everything up for me and have since purchased a property under my smsf.  Indeed I had to produce all the kinds of documents you are talking about, and my accountant sorted it all out.  If esuperfund is setting you up, why is it taking 4 weeks and why are they not handling all these things for you?

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    Hi JacM,

    Only posted my documents to them last Thursday, and I believe they are handling the bulk of the work for me, and it takes time to setup bank accounts, share trading accounts, and register ABN and TFN

    As an estimated guideline from the time signed SMSF documentation are received,  they've stated that ANZ V2 Plus Bank account can take 1-2 weeks, Commsec Share Trading Account 2-3 weeks, Trustee Role and responsibilities ATO documention 3-4 weeks, and Welcome package 4-6 weeks.

    Welcome package will include:

    • CommSec account number and information about Commsec Share Trading Account
    • ABN and TFN registration notices for SMSF
    • Documentation on how to rollover your existing superannuation fund
    • An employee standard choice form to enable SMSF to receive employer super contribution

    Writing a letter to state the fund is a complying fund, regulated by the tax office, will accept contributions from my employer and that provides details about how contributions can be made seems pretty straight forward to me, but what I am uncertain about is how to word things if I am not the trustee of the SMSF but am the director of the company acting as trustee.

    Anyhow, no big deal. I can always resort to contacting eSuper Fund for assistance once I receive and review the contents of the welcome package, or talk to an accountant.

    Cheers,

    Kong

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Regret to say with Esuper you get what you pay for and realistically that is very little.

    Had a couple of clients say that on the surface it looked a good deal but then of course the extra questions and requested where extra over and above the scheduled fee something that an Accountant normally does for nothing.

    As Jac has said probably a matter of giving Esuper a call and asking where it is at.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    Hi Richard,

    Personally I have never used E super before, but experiences with them thus far has been relatively positive, and pretty straightforward.

    Documents were only posted to them 5 days ago, so it seems unfair to expect them to have a SMSF setup by now, especially if there are many counter parties involved such as the ATO, Commonwealth Bank, and ANZ bank.

    In terms of service they have made it quite clear that the annual fee of $699 is only to attend taxation and accounting obligations,  and that they do not provide any financial advice. Furthermore it appears that I have overlooked the documents they have sent me, and they have already provided me with a  'Certificate of Compliance' which meets all NAT13080 requirements.

    If you don't mind me asking…

    What 'extra and above scheduled fee' were your clients referring to?

    Were these clients individual trustees of their SMSF?

    Cheers,

    Kong

    Profile photo of NovacastrianNovacastrian
    Member
    @novacastrian
    Join Date: 2012
    Post Count: 5

    Hi JacM, I to have an accountant that looks after all the compliance stuff for SMSF. It can get very complicated. At least I don't have to worry. Cheers Peter

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    No Corporate Trustees.

    You wont be buying and borrowing much with an individual Trustee.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of stu82stu82
    Member
    @stu82
    Join Date: 2012
    Post Count: 20

    not to mention individual trustees can become a disaster in the event of death/divorce/adding members etc

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes, look at the recent case of Shail where one joint trustee took off with the money and the other trustee was fined for it!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    Never really looked at it that way

    The main reason I setup a SMSF with corporate trustee is that I would like to borrow money via SMSF to invest in properties later down the track, and it seems that banks prefer it if you set it up that way

    Just a few questions:

    • Are contributions made into super taxed at a flat rate of 15%, or do they increase as you salary sacrifice more income into it?
    • Can funds in SMSF be accessed by a member that has reached preservation age but has not contributed anything into the fund i.e. your parents, grandparents?
    • Is it compulsory to have insurance for members of the SMSF? If so, what companies are recommended?

    Thanks,

    Kong

    Profile photo of Kohlhagen GroupKohlhagen Group
    Member
    @kohlhagen-group
    Join Date: 2011
    Post Count: 58

    Question: Are contributions made into super taxed at a flat rate of 15%, or do they increase as you salary sacrifice more income into it?

    Answer: Concessional contributions (where a tax deduction is claimed, or paid from pre-tax dollars such as 9% super guarantee or salary sacrifice) are taxed at a flat 15% in the SMSF. Non-concessional contributions (where no tax deduction is claimed, or paid from after tax dollars) are not taxed in the SMSF. Please note: If a member breaches the yearly contribution caps the SMSF may be liable for excess contributions tax (additional tax of between 31.5% and 46.5%)

    Question: Can funds in SMSF be accessed by a member that has reached preservation age but has not contributed anything into the fund i.e. your parents, grandparents?

    Answer: No, a member's funds are accessed by that member once a condition of release is met (for example retirement at preservation age). Exceptions to this general rule can be in cases of divorce or death.

    Question: Is it compulsory to have insurance for members of the SMSF? If so, what companies are recommended?

    Answer: As a part of new measures introduced on 7 August 2012, as trustee of an SMSF, you are now required to consider insurance for fund members as part of the fund's investment strategy. Definitely shop around if you are purchasing insurance.

    Cheers

    Richard

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    I found it easier to use an insurance broker to find the most appropriate insurance for my circumstance. I used XLife, and they sorted out a policy with Macquarie for me.  The cool thing about the policy was the ability to insure my OWN occupation in the event of total & permanent disablity.  I don't want a situation where for instance I am injured and not able to do the kind of work I do now (database programming) only to be told by my insurer they will not pay out because I am still capable of sweeping floors or cleaning toilets for a living. I expect my insurance to maintain me on a similar level of income to what I am currently capable of earning.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of sq7_marcosq7_marco
    Participant
    @sq7_marco
    Join Date: 2007
    Post Count: 2

    Hi anyone have experience with the other organisation Steve mentioned in his presentation, superhelp.com.au? How does it compare to e-superfund?

Viewing 13 posts - 1 through 13 (of 13 total)

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