Rolling over SMSF

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Poppii2, 8th Apr, 2022.

Join Australia's most dynamic and respected property investment community
  1. Poppii2

    Poppii2 Active Member

    Joined:
    25th Mar, 2019
    Posts:
    39
    Location:
    Sydney
    Wanting some advice to the procedure in rolling over a SMSF to a retail superfund.

    My parents have SMSF managed by The Super Group. They are now retired and realised the fees for The Super Group is really high with relatively low returns for their money with SMSF, they now wanting to transfer into Australian Super. Can someone cluey tell me the process involved so I can follow step by step to help them transfer over ? I tried to read up and came across needing ESA and super stream etc which are alien language to me, feeling bit helpless and stressed. Any help would be much appreciated.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia
    Contact the fund that they want to move to and they will guide you as to what is required.

    As your parents have retired,they may need to open an allocated pension rather than an accumulation fund.
     
    Ross Forrester likes this.
  3. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,431
    Location:
    WA
    I think the rollover process would be pretty easy and done via Superstream, I think it generates a Payment Reference Number and all gets done within 3 days

    Super Group should have a “Wind-Up Process” guide also?
     
  4. ChrisP73

    ChrisP73 Well-Known Member

    Joined:
    5th Oct, 2018
    Posts:
    1,205
    Location:
    Brisbane
    If it's just about fees they might be better off for a whole range of reasons just finding a new smsf fund administrator.

    What's the approximate fund balance and total annual administration fees?
     
  5. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    Following are the things that need to be done to wind up your SMSF

    1. Confirming whether there are provisions in the fund’s trust deed for winding up
    2. Ensuring the decision/resolution to wind up the fund has been initiated in accordance with the trust deed and properly discussed by the trustees and recorded in the fund minutes.
    3. Notifying the ATO of the decision to wind up the fund within 28 days.
    4. Confirming that all contributions have been collected.
    5. Ensuring the income of the fund has been included or accrued in the funds accounts to the date of winding-up.
    6. Preparing for any income and expenses that may arise as part of the wind up.
    7. Valuing the assets of the fund to ensure the transfer values are correct.
    8. Paying outstanding liabilities. These would include accounting and audit fees, superannuation supervisory levy, income tax payable by the fund, GST, PAYG and bank charges.
    9. Complying with all tax reporting requirements including PAYG and contributions reports to the ATO.
    10. Determining the allocation and distribution of surplus or reserves.
    11. Obtaining requests from members and other beneficiaries relating to the transfer and/or payment of their benefits.
    12. Reporting payments and transfers of benefits to the ATO, a roll-over fund and members, as appropriate.
    13. Preparing to lodge the final income tax return and regulatory return for the fund. The return should indicate the fund has no members, no assets and no liabilities.
    14. Arranging the wind up of the corporate trustee, if necessary.
     
  6. Poppii2

    Poppii2 Active Member

    Joined:
    25th Mar, 2019
    Posts:
    39
    Location:
    Sydney
    That sounds like a complicated process. Would the process be simpler if just changing administrator? One of the reasons they are looking to roll over is my parents are not very good in English, so every time they need to meet with the administrator they need a translator.
     
  7. Poppii2

    Poppii2 Active Member

    Joined:
    25th Mar, 2019
    Posts:
    39
    Location:
    Sydney
    Fund balance is about $500K and I think they said the fee was $8000 last year, does that sound right?

    would the transition be simpler if just changing administrator? if so I will help them look for one that speaks their language so they don't need a translator every time they meet with the administrator
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    what is an administrator?
     
  9. Poppii2

    Poppii2 Active Member

    Joined:
    25th Mar, 2019
    Posts:
    39
    Location:
    Sydney
    Homepage - The Super Group
    someone who help managing SMSF?! it's all new to me I am being thrown into the deep end.:(
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    A trustee cannot delegate their powers but can get help - they might be able to help with the winding up.
     
  11. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    they will help manage the fund compliance. they may also assist with all the steps required for rollover. but the current people might be best.

    its not simple unfortunately and you cant just "rollover from one to another"
     
  12. ChrisP73

    ChrisP73 Well-Known Member

    Joined:
    5th Oct, 2018
    Posts:
    1,205
    Location:
    Brisbane
    At 8k p/a they are definitely being ripped off. 1.2-1.5k p/a for all accounting and admin including audit tax return, asic and ato smsf levy is more reasonable.
    Fee Schedule | iCare SMSF

    The trustees /trustee directors don't need to wind the fund up and can change accountant/administrator very easily, probably free of charge. Speak with icaresmsf as an example SMSF Transfer | iCare SMSF
     
    Last edited: 10th Apr, 2022
    Zenith Chaos likes this.
  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    The procedure for SMSFs has changed. This must not be a electronic rollover using the fund elecontric service address. This send a rollover breakdown to the other fund and the Bpay etc must match this incl the reference code. If the fund has a existing adviser they can guide this otherwise you can expect it to be a painful and confusing process if the fund doesnt maintain the right software at present. I was recently asked to assist a closure of a "manual" fund and it "was simple". I quoted $2500+ audit costs as it a decent job to setup what should be in software already

    The Super Group should be able to wind up BEFORE 30 June and rollover in a orderly manner.
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia