Low cost DIY SMSF for an ETF portfolio

@Chris21 via myGov.

 

Sure, but the higher fee version is priced for avoidance so good to know where the limits are and if not suitable choose a more appropriate administration provider. At least that's my perspective.

Was previously here as @Superman__ but doesn't seem active in the last 12 months

 

Just looked up what Div293 was...

NOT something I'm ever likely to encounter

 

Hit a snag getting UniSuper to rollover funds into the Airwallex account provided by StakeSMSF.

Although Stake provided a certificate confirming the accounts details and legitimacy, UniSuper are insisting on a bank statement which the Airwallex account doesn’t provide.

Negotiations with UniSuper continue with Stake are opening a Macquarie CMA as a backup plan which would mean one more hop and delay in getting the rollover into the trading account.

Apparently super funds are also struggling with the new SuperStream rules since Oct 1

 

That's good to know. I've looked up Sunsuper's rollover form and I think they would also insist on the same.

Will be interested to hear where you get to with unisuper @Hockey Monkey

I'm willing to speculate the request to transfer via myGov wouldn't hit this same snag. Pitty you can't do a partial transfer via myGov.

 

The Airwallex certificate includes all these things (SMSF name, BSB, Account Number, Institution Name and Logo) but is not a statement.

I initiated the rollover via Stake who create SuperStream request but without the ATO limitation of a full rollover, so expect the myGov request would hit the same snag.

 

Yes, seems so!

Any insight as to why stake/airwwallex can just issue a statement?

 

Not sure if it’s because it isn’t strictly a bank account or just because Stake only recently adopted the Airwallex account as part of the ASX Beta so haven’t had time to add the capability yet.

 

Hope they're doing it by today, and request monthly statements, or you'll be waiting until January!

 

Could be. Not too fussed, I’ve taken nearly a year to make the decision to go with an SMSF and remain fully invested in UniSuper while it is sorted out.

They mentioned my >250k rollover triggering the requirement for a bank statement. Another option might be to just do smaller transfers.

I must be the first Beta customer to run into this issue with UniSuper, Airwallex and >250k rollovers.

 

StakeSMSF have published a detailed fee schedule at https://stakesmsf.com/wp-content/uploads/2021/10/StakeSMSF-Fee-Schedule.pdf

Very competitive with most options at zero cost including moving to another SMSF provider.

Mrs Hockey Monkey can convert to pension phase in 4 years which is currently only supported in the more expensive PLUS option ($2640 p.a.). If that doesn’t change in 4 years, I’ll likely switch providers Eg IcareSMSF

 

Or seek to negotiate a fee based on your circumstances. Starting a pension looks like it can be quite a simple process in some cases.
Starting an SMSF pension checklist
SMSFs: How to start a pension
Although probably not if both members are not in pension mode. Could pension mode be deferred until you both satisfy condition of release, and in the mean time utilise income from outside super? I suppose other complication would be having assets in excess of the TBC and hence still accumulation mode, even with both members drawing a pension.

 

Yes, we will have assets in excess of the TBC so won’t be able to segregate assets and will require an annual actuarial certificate which is only $220.

We have a 9 year age gap and will likely retire at a similar time, I just won’t be able to access super till later but will reduce tax via pension mode

 

Paying Div 293 personally is a reduction in your (present year) concessional cap. Paying Div 293 counts to your cap. You cant beat it by release or paying yourself does the same thing. It reduces your max super capacity by the same amount. Paying it personally can also lead to excess contributions when the member doesnt know.
Div 293 letters contain explanation of this very issue.

The process requires the member complete a online release request through a tax agent or MyGov within 60 days. The ATO then send a letter to the fund. The fund then pays and also completes a form which is sent to the ATO so they can match the payment to clear the debt (issued personally). After 60days the option vanishes but by calling the ATO you can get it back. Its hidden under SUPER, Manage. and the election is listed there....and only appears for affected taxpayers. It allows them to choose which fund and the amount. The max is limited to the Div 293 tax amount.

Defined benefit members are different. They can chosoe to defer the payment of Div 293 until they can acess super and the release is then treated as a withdrawal BUT...are charged interest

 

Many thanks, that is good to know. I will have exceeded my cap at I maxed out both the concessional and non concessional cap last year and am yet to submit a tax return which will determine Div 293 is due.

Will pay it out of the SMSF when due.

BTW, I went back over past Div 293 statements and didn't find any mention of this impact to contribution caps if Div 293 is paid personally.

 

Hi Paul - this is news to me and I couldn't find any reference to this in my previous D293 letter or the ATO website. Are you able to share a source that verifies this statement (bolded part in particular)?

Doing some internet searching didn't enlighten me either. As an example, the case study on this site (How the Division 293 tax works: Super surcharge for high earners) specifically uses an example of someone with a $25k concessional contribution who also cops Div 293 tax. I would have thought they would mention it if meant the individual could not contribute the full $25k?

I don't mean to infer you are incorrect, I am just trying to clarify my understanding.

 

I'm not following. Can you provide an ATO reference?

I must be blind. I've looked on my 20/21 div293 letter received 10 days ago and can't see this.

 

Common sense has prevailed with UniSuper transferring funds into the Airwallex account. Only 5 transfers to go, hopefully getting them all done this year at one per week or so.

The Macquarie account may still be useful in future when payments are due.

 

Was there anything in particular that you think got them over the line?

 

Not sure exactly. They didn’t provide a follow up, just transferred the money.

Kris Kitto shared this response from APRA and I provided more detail about StakeSMSF and Airwallex including links.