Frequently Asked Questions

1. What is a Superannuation Fund?

A superannuation fund is a trust. It has trustees and beneficiaries. Conditions and restrictions that apply to trustees are discussed below. Beneficiaries are members and their dependants. Money is invested in the trust by way of contributions or transfers from other funds. As the superannuation fund is a trust, the provisions of State trustee legislation apply. Such legislation sets out what are basically minimum standards. The true control of superannuation funds is set out in federal taxation and superannuation law.

2. What is an Allocated Pension Fund?

An allocated pension fund is simply a superannuation fund that is paying an allocated pension to one or more fund members. It retains the same characteristics as a superannuation fund - it is a trust with trustees and beneficiaries.

While the members might refer to the fund as an allocated pension fund, the correct description is a superannuation fund that pays pensions.

3. Why Have Your Own Superannuation Fund?

The attraction for operating your own fund is control over the investments as well as control over the costs of running the fund. There are substantial taxation advantages, regardless of whether you run your own fund or join another run by a fund manager.

4. Who Can Have a Superannuation Fund?

Superannuation funds are established by an employer, usually a company. However, self-employed persons trading in their own right or in partnership, can also establish a superannuation fund. Employers can be companies, trusts or even individuals and partnerships. It is possible, for example, for an individual businessperson to employ their spouse and contribute for the spouse as the employer and also contribute to the same fund on their own behalf.

In addition, the fund can be established by its members. The contributors to a superannuation fund can cover a wide spectrum, including employers, employees, self-employed, individuals and spouses.

5. Who Can Be a Trustee?

For self managed funds, the general rule is that all members must be trustees (or directors of a trustee company) and all trustees must be members. Hence, if there two members, those members must also be trustees. If a company is trustee, the directors must be the two members.

For single member funds, the requirement is that the member must be either one of two individual trustees, one of two directors of a trustee company or the sole director of a trustee company. The second trustee or director can be anyone other than the employer of the member (but note that this has a very wide meaning). A relative, your accountant, solicitor or financial planner can be the second trustee. If there is only one member of the fund, that person cannot be the sole personal trustee.

Trustees and directors of trustee companies must be at least 18 and never have had a conviction for dishonest behaviour. Also, they cannot be a bankrupt or subject to a Part X arrangement, nor can they have received a civil penalty under the Superannuation Industry (Supervision) Act.

6. Can I Transfer Other Fund Balances?

Most superannuation funds allow transfers at the request of the member. You should check with the current fund to find out whether transfers are allowed and, if so, how it can be done. Once you know this, you can have your own superannuation fund set up and make a transfer application. Your old fund will require at least a written request from you and a "compliance letter" from the new superannuation fund. We can supply that "compliance letter". Be aware that these transfers often take up to 6 weeks to process.

7. How Much Do I Need To Start?

This question depends on two issues - costs and likely returns. The cost of running a superannuation fund is likely to be between $1,500 and $4,000 per year. That cost needs to be compared to both the costs of alternatives (master trusts, life offices, etc.) and to the expected returns on investments. It is generally accepted that $200,000 is the minimum capital required to start a superannuation fund.

8. What Does It Cost?

The cost of establishing a superannuation fund varies from $650 to $850, depending on the requirements of the client. The annual administration cost varies, depending on the number of assets and the number of transactions. Please contact our office for a quote.

9. Why Use Us As Administrator?

Administering a superannuation fund can be a complex task. It involves record keeping, preparing financial accounts, arranging an annual audit, lodging a tax return and monitoring compliance with legislation. While many people claim to do these things, few have access to the necessary resources such as computer software and information on legislation. In addition, liaison with the Tax Office is now a regular feature of administering a self managed fund. As a tax agent specialising in super funds, we are in a position to manage that liaison.

There are several reasons to use PSFM as an administrator:

• We guarantee that your super fund tax return will be lodged on time and hence will not incur any late fees. Conditions apply but if there is a late fee, we will pay it.
• We are specialist super fund administrators. It is all we do.
• We use dedicated software, specifically designed to handle every aspect of a super fund. This includes membership history, tax components of benefits, investments, fund income tax, benefit payments and full reporting.
• Our company has been in this business since 1988.
• We employ staff with experience in the superannuation field.
• Our fees are reasonable.

10. I need a cheque from my Cash Management Trust Account

Please complete the cheque request form (click to download) and fax it to our Brisbane Office on 07 3850 1490. It will be posted in the mail the same day for your signature, if received in our Brisbane Office by 3:15 pm.

11. I need to pay for shares that I have just purchased

If you don’t have an online trading account please complete the electronic transfer request form (click to download) and it fax to our Brisbane Office on 07 3850 1490. We will arrange to electronically transfer funds overnight from your Super Fund's money market account to your nominated Broker account. The form must be received in Brisbane Office before 12.00 pm. If you intend to purchase shares on a regular basis from the same Stock Broker you can set up an automatic payment system (click to download).

12. I need a bank cheque for a property purchase

Bank cheques are not normally available, however the procedure is to complete an electronic transfer request form (click to download) and fax it to our Brisbane Office on 07 3850 1490. We will then arrange to electronically transfer from your money market account overnight to your Solicitor's trust account for the property settlement. The money will arrive as cleared funds, the same as a bank cheque. You must ensure that any funds that are to be transferred as part of the settlement are deposited at least five days prior to your electronic transfer request to allow for any cheques to be cleared.

13. I would like to add a new member to my Fund

This process is more involved than you may have first thought. The maximum membership for a Self-Managed Superannuation Fund is four. Any new members also have to be Trustees. This means all members/trustees have access to signing investment documentation, bank account cheques, and other fund documentation. All current assets in the name of the existing individual Trustees will need to complete a change of ownership to reflect the new Trustees. This can be a costly process as well as very time consuming. If the Fund Trustee is a Company then it can be easily changed by making the new member a Director of the Trustee Company. Supa-Funds Management can prepare change of trustee documents and all associated paperwork, however the process of changing all Fund asset titles is the Trustees' responsibility. This is due to privacy issues and the fact that original Trustee signatures are required to process the change. It is best to contact your Financial Planner, Stockbroker, or other Advisor as they will be able to assist you with this process. Please call our office for more information if required.

14. I have a change of address

Please complete the change of address update form (click to download). You can mail, fax or email this form to our Brisbane Office.

15. How do I tell you about my contribution?

We are required to correctly record all contributions in regard to which member the contribution is for, and if you are claiming a tax deduction as an employer or member. We have to report to the Australian Taxation Office all tax deductible contributions by the end of October each year for the prior financial year. For tax deductible member contributions (self-employed) we need to send a section 82AAT notice for inclusion with the member’s personal tax return. Please use the contribution remittance form (click to download) to accompany your cheque or electronic transfer confirmation.

16. How do I access my fund on the internet?

Included in our Fund establishment documents is a request form for our office to issue a username and password for you to access your Fund details online. If you require details to access our online service please complete the Online Access form (click to download). Please note that these details are only suitable for Supa-Funds Management's website. For details to access your Cash Management Trust account, you will need to set this up yourself directly with the CMT manager. Have your CMT account details handy and call them, they will arrange for a username and password to be issued. A direct link to access both DDH Bank of QLD and MLC-CMT accounts is provided on this web site on the home page under Login to Your Fund Information. If you have any problems regarding this access just give our Brisbane office a call.

17. I am thinking of retirement, what now?

The first step is to consult with the experts such as a Financial Planner to examine all your options. If you would like some information to start this process, download ourProduct Disclosure Statement and go to pension information. Don’t hesitate to give our office a call with any questions on the various pensions available from your Self-Managed Superannuation Fund. We can also provide examples of these pensions for “what if" circumstances to guide you in future retirement planning.

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