esuperfund smsf information package

8/19/2019 ESUPERFUND SMSF Information Package

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Self Managed Superfund Information Package




Benefits of SMSFs

What is a SMSF?

So what exactly is a SMSF? A SMSF is your own personal Superannuation Fund that gives you total control overhow your Super Benefit is invested. An SMSF is perfect for the DIY Investor who prefers to make their own

Investment Choices for their retirement rather than leave their Superannuation to be invested by others.

Largest Superfund Sector

The SMSF Sector has been around for more than 30 years and is Australia’s largest Superannuation Sector by number

of Funds and asset size. As at 31 March 2013, there were over 500,000 SMSFs, representing 99 per cent of all

Superannuation Funds, and 30 per cent of total Superannuation Assets. The SMSF Sector has over 913,550 Members.

The SMSF sector has seen rapid growth in recent years, increasing to over $500 Billion at 30 June 2012.

1. Control

A SMSF gives you total control of your Super by allowing you to choose where you invest your Super Benefit. You

can invest in Shares, Warrants, CFDs, FX. Metals, Commodities, Managed Funds, Cash, Term Deposits, Residential

Property, Commercial Property, Bonds and more. Importantly you choose where to invest. In times of volatility you can

cash up and stay in cash based investments such as Term Deposits (a very popular strategy at the moment) and in

times of more certainty you can invest in growth based investments such as Shares and Property. The recently released

Self-managed Superannuation Funds Regulatory Update by ASIC confirms that it is exactly this investment choice that is

so appealing about setting up a SMSF. In fact 58% of all SMSF were established for the simple reason of havingcontrol over your Super.

2. Cost Effective

SMSFs can be the most cost effective type of Superannuation Fund, particularly considering ESUPERFUND’s low

annual fee of $699 fixed irrespective of your Super balance. This means that the percentage cost of running a SMSF

actually falls the higher your Superannuation balance grows. This is unique in comparison to other Superannuation

Funds whose fees increase as your Superannuation balance grows. For example, a Superannuation Fund charging 1%

in fees will double their fees from $2,000 to $4,000 per annum when your Super Benefit doubles from $200,000 to

$400,000. ESUPERFUND’s Fee remains fixed at $699 when your Super Benefit doubles from $200,000 to

$400,000. This represents a Fee Saving of up to 80%! Consider that an average retail Superfund can charge up to 2%

pa in fees and that you will pay around $500,000 in fees over your working life.

3. Able to Consolidate Multiple Member Accounts

A SMSF allows you to consolidate your family or friend’s Super Benefit under one S MSF. A SMSF can have up to 4

Members and each of these Members can contribute to the one SMSF. This means that instead of each Member

paying separate fees in their Fund (or in multiple Funds) you can Rollover and consolidate 4 persons Super Benefits,

which can then be managed under the one SMSF. Importantly, whether your SMSF has 1,2,3 or 4 Members our annual

fee does not change!




4. Accumulation and Pension Fund in one

With Retail and Industry Funds your benefit is typically invested separately in a Pension or Accumulation Account. This

means that when you wish to drawdown your Super Benefit as a Pension your Super Benefit will need to be transferred

to a separate Pension Account and any additional contributions you make will be added to a completely separate

Accumulation Account. Each Account is managed separately with separate investments and a separate fee structure.Usually the more Funds you have the more fees you pay! A SMSF is a Pension and Accumulation Fund in one. You

can commence a Pension and continue contributing to the same SMSF. There is no need to split your Super Benefit

into multiple Funds. ESUPERFUND can track each account as part of the annual compliance process. Importantly

even if you have a Pension and Accumulation Account Balance our annual fee does not change!

5. Taxation Benefits

When you commence a Simple Account Based Pension or Transition to Retirement Pension, the SMSF tax rate falls to

NIL on earnings and capital gains. This means that you can generate unlimited income and capital gains and will

pay no tax on them. This also means that your SMSF is entitled to receive any franking credits on Australian Share

Dividends in cash from the ATO. Franking Credits simply represent tax paid by Australian companies on dividends your

SMSF is receiving. Given that the company has paid 30% tax and your SMSF tax rate in pension mode is Nil, the entire

30% tax paid is refundable to your SMSF. Example: For every $10,000 received in fully franked dividend income, yourSMSF receives $4,285 as a cash refund from the ATO each and every year the dividends are paid, after you commence

a Pension! This is not the same in Retail and Industry Superfunds that can decide how to allocate the tax refund or retain

it if they choose. This is because the refund belongs to the Superfund and the Trustee of the Fund has discretion on how

the tax refund will be applied.

6. Consolidate Investments

Members of a SMSF traditionally make contributions in cash. However it is possible for Members to make contributions

of assets into a SMSF instead of cash (called in specie contributions). Importantly only certain assets listed in the super

regulations can be transferred in specie by a Member to a SMSF, such as Shares, Managed Funds and Commercial

Property. If not specifically listed in the super regulations, it is illegal to transfer assets owned by a Member into the

SMSF as a contribution. Residential Property is specifically excluded and cannot be transferred from a Member to aSMSF. Notwithstanding this, in specie transfers allow you to consolidate your Family Assets under the one SMSF

tax advantaged umbrella.

7. Succession Planning

A SMSF allows you to conveniently and legally pass a Members Super Benefit to their beneficiaries in the event of theMembers death. This can keep your SMSF assets under the same SMSF tax advantaged umbrella even after aMembers Death.

8. No Minimum Balance

A common rule of thumb in the Superannuation industry is that you should have $200,000 in Super Benefits prior to

establishing an SMSF. Some administrators actually require you to have a minimum amount in order to commence a

SMSF, usually $100,000 or more. Conveniently these same administrators charge you on a percentage basis which can

add unnecessary fees to your annual invoice. There is actually no legal minimum balance to establish a SMSF. You

can establish a SMSF with ESUPERFUND with any amount desired.




How much do I need to start a SMSF?

A common rule of thumb in the Self Managed Superannuation industry is that you should have at

least $200,000 in superannuation benefits prior to establishing a Self Managed Superannuation Fund

(SMSF).

Why $200,000?

SAVING FOR A

RAINY DAY?

Control Your Super

with Australia’s

biggest SMSF

Provider.

The reason lies with the general view of the ongoing administration cost of an

SMSF. These costs are considered to be "on average" $2,000 per annum,

resulting in a running cost of around 1% per annum which is considered

reasonable in the present marketplace.

The fact is, no one pays an average fee, but an actual fee. And this fee can be

dramatically lower than what most self managed super experts would have you

believe.

The development of the Internet has altered the way services are provided to

consumers, often more efficiently and at a lower cost. These opportunities now

exist in many other markets including the SMSF market.

ESUPERFUND currently has a free setup fee and a fixed annual fee of $699.

This equates to an annual running cost of 0.35% on a $200,000 super benefit,

which not many Retail Super Funds can claim. Using the marketplace norm of

1% per annum as an acceptable fee ratio, you could set up a SMSF with

ESUPERFUND with as little as $70,000.

While a 1% rule of thumb is commonly used in the SMSF industry, a recent

study by Deutsche Bank published in Personal Investor magazine stated that

the average Retail Fund cost ratio was 2.11% per annum and the average

Corporate Super fund cost ratio was 1.73% per annum.

Ultimately the amount you need to establish a SMSF is a personal decision.

Issues other than cost should be considered including the level of control you

want over your Super Benefit. Importantly, do your own research and don't take

averages as a guide because averages tend to distort the truth.




So how does it work?

Step 1. Setting up a bank account for your SMSF

When you become a client of ESUPERFUND, an ANZ V2 Plus Account or CBA Accelerator Cash

Account is established which will act as the Transaction Account for your SMSF. At the end of each

financial year, ANZ and CBA will send to ESUPERFUND an annual data file of all your SMSF

transactions. This enables our office to attend to your SMSF’s annual compliance obligations. No

bank records are required from you each year as we already have access to the data.

Step 2. Setting up a share trading account for your SMSF

A Share Trading Account will be established for your Fund enabling you to trade Australian Shares

online. ESUPERFUND clients can choose to trade Shares through either the CommSec or

EBROKING Trading Platforms. At the end of each financial year, the Broker will send to

ESUPERFUND an annual data file of all your SMSF trades.

Step 3. Rollover Your Existing Super Benefit to your SMSF bank account

Once your SMSF has been established you can apply to your current Superfund to transfer your

existing Super Benefit to your new SMSF. You cannot apply to Rollover your existing Super Benefit

until ESUPERFUND has mailed to you the “Final Establishment Package” which will include all your

SMSF setup details including the ABN.

Step 4. Commence making Contributions to your SMSF

Once the SMSF has been established you can also commence making Contributions to the SMSF.

All Contributions must be deposited into the ANZ V2 Plus Account or CBA Cash Accelerator CashAccount established for your SMSF. There is only one Bank Account established for your SMSF and

all Members must deposit Contributions into the same Bank Account. Each Contribution and

Contribution Type must be allocated to a specific Member as part of the annual compliance process.

Completely Safe

Importantly when you setup a SMSF with ESUPERFUND your Super Benefit is completely safe.

All SMSF Investments including the Bank and Broker Accounts are established in the name of

your SMSF. This is a very important point and gives you total peace of mind that your SMSF is

the direct owner of the SMSF Investments. ESUPERFUND do not have any access to your

Bank or Broker Accounts either directly or indirectly. It is important to understand that onlyyou as the Trustee for the SMSF can access your SMSF accounts.

Click to View the Setup Process

http://www.youtube.com/watch?v=BXp0GDwDXos






Thinking of Setting Up A SMSF to Buy Property?

Did you know that you can use a self-managed super fund (SMSF) to buy property through your

super — and potentially boost your retirement savings at the same time?

3 Reasons to consider Property investment With Your Super

1. Diversify into a high growth asset

A key benefit of SMSFs is that they offer a wider range of investment options than traditional super funds — including

direct property. By spreading your savings across asset types, you can help reduce risk and create more consistent

returns, while still investing for growth.

2. Build a bigger portfolio sooner

An SMSF can borrow to invest in residential or commercial property, with lenders typically funding up to 70% or 80% of

the purchase price. So you can take advantage of low interest rates to build a bigger portfolio now, and potentially earn

more income and capital growth in the future. As long as your returns outpace borrowing costs, you’ll come out ahead.

3. Potentially save on tax

SMSFs can use negative gearing to claim a deduction for borrowing expenses, just like individuals. And investing

through an SMSF can have other tax advantages as well. Rental income paid to your SMSF is generally taxed at just

15%. And if you are over 55 and commence a Pension in your SMSF, then the rent you receive is tax free. More

importantly after commencing a Pension in your SMSF, any capital gain when you sell the Property is also be tax free!

Tips and tricks – Bear in Mind!

While investing in property through your SMSF can be an attractive strategy, there are a range of rules you need toobserve, plus some pitfalls for the unwary. Here are some of the most important.

1. Check your investment strategy.

Your property purchase needs to conform to your SMSF’s written investment strategy.

2. Use a non-recourse loan.

SMSFs can only use a limited recourse loan, when purchasing a Property. So if something goes wrong and the fund

defaults, its other assets aren’t at risk.

3. Remember the sole purpose test.

Your investment must be for the sole purpose of saving for retirement — which means you can’t use your super to pay

off your own home or buy a holiday home, for example.

4. Avoid related party transactions.

It’s also against the law to buy, sell or rent a residential property to or from a fund memb er, trustee or a relation. That

means you can’t transfer a residential property you already own into your SMSF, for example. The rules for commercial

property are slightly different, with business owners often choosing to buy premises through an SMSF, then rent them

back to the business at commercial rates.

If you’re interested in investing in property through an SMSF, ESUPERFUND helps makes it easy, with a fast,

streamlined process. Find out more about how investing in property in your SMSF works here.

http://esuperfund.com.au/smsf-property/how-investing-in-property-works.html







What does ESUPERFUND do for you?

Electronically accessing data

ESUPERFUND is able to electronically access the transactions and trades made by your SMSF inorder to attend to the SMSF annual compliance requirements. That is at the end of each financial year,

Bank and your Broker will send to ESUPERFUND an annual data file of all your SMSF transactions

and trades. This enables our office to attend to your SMSF’s annual compliance obligations. Minimal

records are required from you each year as we already have access to your SMSF transaction data.

Attending to ALL Annual Compliance Obligations

Your SMSF must attend to certain annual reporting requirements each and every year. These include:

Preparation of an annual Balance Sheet

Preparation of annual Member Statements

Preparation of annual Trustee Resolutions & Minutes

Preparation of an annual Income Tax Return

Preparation of an annual Audit

Lodgement of the annual Income Tax Return

Annual Compliance Fee is payable in January each year

The annual compliance fee is FREE for the first year and then $699 per annum. ESUPERFUND

attends to ALL the taxation and accounting obligations for your SMSF for an annual fee of $699 per

annum (GST inclusive), irrespective of the number of transactions made by your SMSF, the size of

your SMSF or the number of Members. You can be assured our low fee of $699 per annum will coverall your SMSF annual obligations and that no additional fees will be payable for “hidden” services.

Please note that the ATO charges an annual levy of $259 for each SMSF. This annual ATO Levy

applies to all SMSFs and not just SMSF’s administered by ESUPERFUND.

How do we keep our fees so low?

ESUPERFUND is a volume based business that has invested significant capital to streamline its

systems and processes resulting in material efficiency savings which are passed on to clients.

By using the specified Bank and Broker Accounts as the preferred Bank and Broker Account for our

clients, we are able to ensure that our services are provided at a fee significantly below the market. A

review of the marketplace indicates that other SMSF providers charge between $1,500 and $5,000 to

administer your SMSF. In most cases our competitors quote only their base fees that increase the

more transactions or investments your SMSF has. At ESUPERFUND our price is fixed at $699 per

annum, irrespective of the number of transactions made by your SMSF, the size of your SMSF or the

number of Members.

Preparation of an annual Balance Sheet

Preparation of an annual Profit & Loss Statement

Preparation of annual Member StatementsPreparation of annual Trustee Resolutions & Minutes

Preparation of an annual Income Tax Return

Preparation of an annual Audit

Lodgement of the annual Income Tax Return




Fees

All Compliance Fees are detailed below. There are no other hidden compliance fees!

Current Promotion Offer

New SMSF Establishment Existing SMSF Transition

SMSF Annual Compliance Fee 699 includes:

Annual Compliance

Annual Compliance Including Audit

Pension Fees

Pension Establishment

Pension Annual Compliance

Pension Consolidation

Pension Rollback

Annual Pension PAYG Summary

ETP Lump Withdrawal Document

For further details of the fee schedule please visit our website www.esuperfund.com.au

Stop Paying High Fees!

There is really no reason to keep paying high fees to manage your SMSF. At

ESUPERFUND our aim is to ensure our services are provided at a fee significantly

below market. Compare our fees with others here. So maybe clients should no longer be

asking if our service is “too good to be to be true” but embracing the fact that maybe

ESUPERFUND is simply using technology in a way that makes our company “ahead of its

time”.

SMSF Establishment

First Financial Year Fee

SMSF Transfer

First Financial Year Fee699

Member & Trustee Changes

Adding a Trustee / Member

Removing a Trustee / Member

Other Services

Binding Death Agreement

Income Activity Statement

Administration Queries

http://www.esuperfund.com.au/



http://esuperfund.com.au/fees/compare-fees.html









Why ESUPERFUND?

The Top Features and Benefits of using the ESUPERFUND SMSF Service are detailed below:

FREESMSF Set Up

& 1st

Year Fee

When you apply online to establish an SMSF, ESUPERFUND will mail to you all the requireddocumentation necessary to establish the SMSF. Under our current promotional offer it is FREE toestablish a SMSF with ESUPERFUND and the First Years annual compliance fee is FREE. That isthe fee to attend to the SMSF’s first years annual compliance obligations is FREE.Saving: Save $1,398!

$699 Fee80% below

market

A review of the marketplace indicates that other SMSF providers charge between $1,500 and

$5,000 to administer your SMSF. In most cases our competitors quote only their base fees that

increase the more transactions or investments your SMSF has. At ESUPERFUND our price is

FIXED at $699 per annum whether your SMSF has 10 or 1,000 transactions per annum.Saving: Save $1,000 to $5,000 per annum!

ALLAnnual

Compliance

ESUPERFUND attends top ALL the annual compliance requirements for your SMSF including

the Financial Statements, Member Statements, Tax Return and Audit. You do not need to

arrange for another accountant to attend to any additional reporting as it is all attended to and

completed by ESUPERFUND.

Reputable

Since

2006

ESUPERFUND is the largest Self-Managed Superannuation Service Provider in Australia and

has helped thousands of SMSF Investors establish and manage their own SMSF since the year

2006. ESUPERFUND is licensed through the Australian Securities and Investments

Commission. We are also licensed with the Australian Taxation Office as a Registered Taxation

Agent. Importantly the ATO and ASIC annually review our operations to ensure that we comply

with all our taxation and licensing obligations giving you total peace of mind.

No

Minimum

Balance

Some administrators require you to have a minimum amount in order to commence a SMSF,

usually $100,000 or more. Conveniently these same administrators charge you on a percentage

basis which can add unnecessary fees to your annual fee. There is actually no legal minimum

balance to establish a SMSF. You can establish a SMSF with ESUPERFUND with any amount

desired.

Attend to

Audit

Infrequently your SMSF may be audited by the ATO. An audit is not common however it can be a

daunting experience for clients. Importantly ESUPERFUND will handle all issues associated with

the audit and will liaise with the ATO directly for you. In fact in most cases you will not even be

involved and the audit issues will be attended to by ESUPERFUND.

Education

Resource

ESUPERFUND provides an extensive Leaning Centre enabling you to educate yourself about

establishing and running your own SMSF. Our Learning Centre is being constantly expanded

and updated to meet your education needs. It has recently been updated with extensive

Questions and Answers allowing you to access real time answers to common SMSF queries you

have. This is state of the art technology exclusive to ESUPERFUND.




What our happy clients say?

“I wanted to let you know that I am very impressed by the whole experience. It was a straight-forward process, the

documents were clear and the website worked well. I have previously recommended ESUPERFUND to many friends

and will continue to do so.”

"I like the way that your entire system has been setup. It is very impressive and has saved us a lot of time, money

and effort. We really appreciate the support and feedback that you have provided to us. Keep up the good work! "

"Your learning modules are A1 plus. The information contained therein is second to none and I thank you for

providing the well put together info for us to learn from. I will continue to promote your expertise to everyone I know. "

So what’s next? SMSFs are now the dominant force in the $1 trillion Superannuation Industry and ESUPERFUND has established itself

as the largest SMSF service provider in the SMSF sector.

Why wait? Join the SMSF Revolution and establish your own SMSF with ESUPERFUND today!

Sign up for your Self Managed Super Fund and take back control of your Super!

Check out our extensive education resources at Our Learning Centre.

Have questions? Please email us at [email protected]

https://esuperfund.com.au/ApplyOnline/ApplyOnline.html


http://esuperfund.com.au/learn/learning-modules/pdf-modules.html


mailto:[email protected]






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