We always recommend our clients use a special purpose trustee company for their SMSF. Once the trustee company is set up, the ongoing maintenance to look after it is relatively simple, but very costly if you get it wrong as the Australian Securities & Investments Commission (ASIC) can levy hard penalties that are difficult – if not impossible – to get remitted.
In this article we will show you how to make looking after your SMSF trustee company easy and save you money at the same time.
ASIC late fees
If you cannot, or forget to pay on time, the ASIC late payment fees ASIC applies are quite onerous:
- Up to one month late – $79
- More than one month – $329
So how can you ensure you avoid these hefty fees, as well as simplifying the administration of your SMSF trustee company? Easy!
Advance pay the annual review fee for ten years
If you make an advance payment of $370 (if prior to 30 June 2019) you will save based on the current annual review fees for a special purpose company.
It seems as if the moment of reckoning may have arrived for Greece. Global news outlets are airing footage of long lines outside of Greek banks over the weekend before the government announced a bank holiday and capital controls.
That it has come to this is not a surprise. The only surprise is that it has taken this long! Since the Greek Financial Crisis Mk1 there have been countless rounds of negotiations between Greece and the so called Troika made up of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF). The fate seemed to be sealed in January after the election of the Syriza party. On the announcement I tweeted (follow me on twitter @marks_thinking) ‘..the people have spoken in democratic Greece. We do not want to pay our debts when they fall due’.
President Alexis Tsipras couldn’t be seen to bow to the Troika, since his platform was to stand up to the ‘oppressive’
I recently came across a great article in AFR Smart Investor magazine by Steven Enticott entitled “Where you can’t skimp on your SMSF” which not only outlines the value of working with qualified and experienced SMSF specialist accountants and advisers, but asks five really good questions that you should ask before selecting an SMSF administration provider.
You can read the full article here: Where you can’t skimp on your SMSF.
I thought the questions were very relevant to both our clients, and others looking for a quality business that can help look after your SMSF, so I’ve taken the time to put together my answers to the questions which will give insight into how Superfund Partners operates.
1. Is the paperwork being done offshore?
No. Absolutely not.
The Directors of Superfund Partners made the decision a number of years ago not to offshore in the interest in saving on labour costs.
With 30 June just over two weeks away, now is the time to run through a checklist of what you need to do prior to the end of the financial year.
Although we always endeavour to personally contact every single one of our clients this time of year, we’ve found a generic reminder of these key items is a good reminder also.
Contributions – getting money into your fund
If you are intending to make contributions into your SMSF, you need to make sure the contributions are received by your SMSF on or before 30 June in order for it to be counted for the 2014/2015 financial year. This is important if you are making contributions by electronic funds transfer (EFT) as some transactions may not be credited into your SMSF’s bank account until the following business day.
Check your timing
The 30th of June this year is a Tuesday. Although most transfers will hit the SMSF bank account the following business day,
Australians love property and our high level of (expensive) property ownership is one of the reasons we are ranked as one of the wealthiest countries in the world. Not only do we desire our own block of paradise, we also love to invest in property with 1.9 million individuals declaring rental income (or more likely a rental loss) in their annual tax returns.
But do we every stop and ask why? Why do we love property so much, and why is a large chunk of the population obsessed with becoming property millionaires?
In this article I will delve into some of the psychology that drives bricks and mortar investment. My goal is not to change behaviour or even judge whether the desire to invest in property is right or wrong. I simply want to hold up a mirror so we can better understand our own decisions and biases.
Property is a physical asset
Property is a physical thing.
Utilising a unit trust structure to provide multiple investors with ‘shares’ in an underlying property is not new. Listed and unlisted unit trust structures have been around for many years and we’ve also recently seen a fractional property investment solution launched by DomaCom.
The real point of difference that BrickX provides investors is that they are effectively creating a market where the shares (or ‘bricks’) in the individual properties can be bought and sold openly with very little cost (2% purchase cost, $0 sale cost). The transparency and liquidity this can provide is something residential property investors can’t currently access.
But would SMSF investors be better off buying an entire property via a limited recourse borrowing arrangement, or should you buy a number of bricks across a number of properties?
There is always a better way for us to work together, to enable your SMSF to be looked after more efficiently so we can all focus on more important things. In this article and video we take a look at our online document management and collaboration system and how you can use it to save time when it comes to providing us with the documents Superfund Partners and our auditors need to complete your SMSF accounts and keep your SMSF up to date.