How we can help you
SMSF Setup
Once you have decided to proceed with an SMSF Setup please reach out to our friendly team where we are able to assist you in the preparation of documents from start to finish.
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Choosing the name you would like, for example, the Cooper Super Fund. This name does not need to be unique but the ATO may choose not to register it if they feel it contains swear words or is derogatory.
Choose the name for the corporate trustee, this is the company that exists to manage the super fund. It does require a unique name and we also recommend something obvious such as Cooper SMSF Pty Ltd. Remember you will need to check on ASIC if the name you would like is available.
We will then provide you with a form to complete which will capture the personal details we need to complete your SMSF setup. These need to be matched with a photo ID, such as a passport or driver’s licence, to pass the verification of identity checks.
Clients who are not directors of other companies will need to apply for a Director’s Identification Number (DIN) via the Australian Business Registry Services. This is a government mandated requirement designed to cut down on phoenix operations as well as identity fraud.
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Work with the SMSF lawyers to complete the legal documents including the SMSF Deed, corporate trustee’ constitution and registry, and the optional binding death nominations for you to consider.
Organise the compliance documents including trustee minutes, member applications, ATO trustee declaration forms, and a template for an investment strategy for the trustees to complete.
Once everything is signed, we apply for your ATO Registrations. These are usually instant but, in some circumstances, the ATO can choose to investigate the application further and this will delay the process. There is absolutely nothing that can be done to expedite these, although delays are quite rare. Checkout the ATO website for more information about registration application delays.
All funds need to have an Electronic Service Address to receive rollovers from existing super funds and receive employer contributions. This is something we setup for you and is included in our fees, the electronic service address for your new fund will be ‘BGLSF360’
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Once the ATO registrations are available you will be able to set up a bank account for the fund. There are no restrictions on what bank you are able to use for the SMSF.
Once setup, we can prepare and submit rollover paperwork for any existing superannuation accounts you would like to roll over into your new SMSF.
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The ongoing ASIC fee will cost you $59 per year (ASIC tends to put up by a couple of dollars each year) from now on for the SMSF trustee. This is payable by the SMSF to ASIC directly and is tax deductible.
All companies have to have a “registered office” which is staffed 9-5 during standard work days for legal correspondence. This is a service we provide for all our Corporate clients at no charge. This is the reason our office address will appear as the registered office address on your company documents.
The SMSF deed will include Binding Death Benefit Nomination forms for all members. These are used to stipulate what will happen to each member’s benefit in the unfortunate event of their passing. These are able to be completed at any time and updated as often as needed.
SMSF Tax Return
Each year all Self Managed Super Funds are required to lodge an SMSF Tax Return with the Australian Taxation Office. This SMSF tax return is lodged once the audit is finalized and contains financial information along with regulatory information, members contributions and balances to the Tax Office. This is far more detailed than a standard business or personal tax return as it includes a great deal of compliance information as part of the Tax Office’s surveillance of the super space.
It is important to ensure that your fund is compliant in order to access the concessional tax treatment which is one of the key benefits of the super system. In order to remain compliant, it is important to understand the rules and obligations imposed on your SMSF via the Superannuation Industry (Supervision) Act 1993
SMSF Audit Services
As part of our annual service, we arrange the SMSF Audit on behalf of the trustees and try to prepare you in advance so that the process is as painless as possible.
All Self Managed Super Funds must conduct an SMSF Audit annually before a tax return is able to be lodged to the ATO. This auditor must be independent to the accountant who prepared the files, where their job is to be sceptical and require proof of the veracity of the reports prepared.
The information that the auditors will require is extensive depending on the asset classes. We assist our clients throughout the audit process and many of the items listed below will be contained within the Class Super software package or be able to be obtained by our staff.
Please see below a non-exhaustive list of what may be required.
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SMSF deed and any amendments if applicable.
Signed member applications.
Signed trustee consents.
Signed ATO trustee declarations.
Bare trust deed if applicable.
Trustee minutes, representation letter and signed declarations.
The investment strategy of the fund for the current income year.
Prior year financial statements, tax return & auditor’s report.
ASIC Extract for the corporate trustee.
Work test declaration where applicable.
Signed engagement letters for the accountant & auditor.
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Current year financial statements, tax return, tax reconciliation and ATO portal reports till the date of the audit.
And where applicable:
A copy of the Actuarial Certificate.
Rollover statements.
Pension establishment/commutation/restructure documents.
Confirmation of contributions and any Div293 issues.
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This will vary greatly depending on the type of investments that the fund holds but the basic rule is that you must have a document to substantiate every transaction and holding value within the fund.
For example:
Copies of bank statements for the year clearly showing the name of the fund and the transactions for the financial year in question. This must continue through to the date of the audit to check for subsequent events. The same applies to term deposit statements.
For listed securities, the transaction statement and dividend statements.
For unlisted securities, a copy of the annual audited financials for the entity, a copy of its corporate extract, share certificates, tax return. Also, where applicable, a statutory declaration confirming any related party aspects of the transaction.
For options trading we need the transaction statement and a copy of the monthly open position statements for the financial year in question going through to the audit date.
For properties, whether commercial or residential, you will need a copy of the purchase contract and settlement statement, certificate of title, council rates, an independent market valuation of the property, current lease agreement or property management statements and invoices for any expenses paid from the fund such as insurance, rates, water, repairs, and the like.
Where a fund is lending money as part of its investment strategy, the auditor will need a copy of the signed loan agreement, the loan schedule, and evidence of current year repayments to meet the subsequent events test along with a statutory declaration confirming there are no related party prohibitions.
For fund investments in precious metals or collectables, such as artwork, classic cars, coins, or other unique investments, you will need to provide:
Purchase documents
Valuations showing the current value on 30th June.
An insurance policy for the assets confirming the SMSF ownership and the value insured.
In the case of classic cars or motorcycles, a photograph of the odometer reading at the start and end of the year.
You will also need to provide some proof of the existence of the asset such as a photo of the bullion with today’s newspaper next to it.
The reason this is important is that the ATO has caught several people who have bought bullion in their funds, sold it for cash, then pocketed it, effectively stealing from their super fund.
SMSF Wind Up
Eventually the time comes for all Super Funds to be wound up and the monies either withdrawn as a pension or rolled into a different fund.
The SMSF Wind Up is the natural end to all self managed super funds and should be planned for as part of your succession and estate plans. These plans should be committed to writing and signed by all trustees.
As part of updating your investment strategy each year the trustees should continuously review whether the SMSF is still the right structure for them. If you need any help with this determination, we recommend speaking with an ASIC licenced financial planner who can provide holistic advice about your super and other assets along with retirement planning.
