Administration Agreement

The terms and conditions of this Administration Agreement between the Administrator (Supercorp Administration Pty Ltd ABN 23 010 867 633 ‘Supercorp’) and the Trustees of the SMSF in relation to the Supercorp YourSMSF Annual services are detailed below. The YourSMSF services are offered by Supercorp to the Trustees of the SMSF.

In addition to these terms and conditions you should also read the YourSMSF Fund Application, and the SMSFs Trust Deed.
It is important that you fully understand the terms and conditions of this Administration Agreement. You should contact Supercorp if you require further information.

Appointment

The Trustees appoint Supercorp to provide the YourSMSF services and Supercorp agrees to provide the YourSMSF services.

Supercorp Obligations

Supercorp will provide the YourSMSF services to the Trustees in accordance with this Agreement. The YourSMSF services will include:

  • Arranging for the establishment of the SMSF where necessary including arranging preparation of or amendment of the SMSFs trust deed
  • Registering (or reregistering) the SMSF or the Trustees with any government body or other entity for any purpose (including GST) as determined by Supercorp from time to time
  • Maintenance of records and accounts relating to the SMSF, the Trustees and members (including member rollovers, transfers, contributions, etc)
  • Responding to enquiries from Trustees and members concerning Fund details, member account balances and other administration matters
  • Preparation annually of reports compiled from the records maintained for the SMSF in relation to investments, asset allocation and investment strategy, member balances and Fund compliance
  • Preparation and dispatch of annual member statements and reports compiled from the records maintained for the SMSFs members in accordance with Superannuation laws showing members accumulated benefits including investment earnings and, if applicable, pension and PAYG details
  • Preparation of annual accounts for the SMSF and arranging the annual audit including provision of working papers to auditors
  • Preparation and lodgement of annual tax return for the SMSF
  • the preparation and lodgement of PAYG, BAS and IAS returns
  • Calculation of member benefit and pension payments from time to time, including annual minimum and maximum pension entitlements and arranging actuarial certificates
  • In the event of a member’s divorce, assisting Trustees in administering the SMSF in relation to that divorce
  • Retaining electronic copies of Fund records for the statutory periods required by Superannuation laws.

The Trustees acknowledge that:

  • Supercorp will provide the YourSMSF services only in accordance with its business rules
  • Supercorp’s business rules may change from time to time, which may impact these YourSMSF services
  • Unless otherwise agreed in writing, Supercorp is to supply SMSF administration services only in accordance with this Agreement and that this does not imply any additional financial planning style services
  • The Trustees must ensure that the provision of the YourSMSF services is at all times consistent with the SMSFs trust deed
  • The Trustees must give any assistance to Supercorp which, in Supercorp’s opinion, it reasonably requires and within a timeframe that is stipulated by Supercorp (acting reasonably) as being required to effectively administer the SMSF.

Trustees Obligations

Provision of information

The Trustees authorise Supercorp to provide financial data relating to the SMSF to the Financial Adviser. The Trustees agree to notify Supercorp of any change in their details or the details of the SMSFs members as soon as practicable and in any event within ten (10) business days of the change.

Trust Deed

The Trustees will maintain the SMSFs trust deed in a format approved by Supercorp and obtain amendments to the SMSFs trust deed if required by Supercorp.

Compliance

The Trustees acknowledge that the Trustee alone is solely responsible for the SMSF compliance to superannuation and tax legislation without limitation. The Trustees agree that Supercorp may, at its absolute discretion, perform a due diligence and compliance review of the SMSF at any time and in the event that Supercorp identifies deficiencies the Trustee will work diligently to correct any raised issues in a timely manner or authorise Supercorp to do so in its behalf. Supercorp is under no obligation to perform a compliance review.

Warranties

The Trustees warrant that:

  • The Trustees read and understood the terms and conditions in this Agreement; and
  • The Trustees are Australian residents for taxation purposes and,
  • If in future this status changes for a period in excess of two years with respect to any of the Trustees, the Trustees either will appoint an approved trustee for the SMSF or rollover the relevant member’s benefits to another complying superannuation fund.

Subject to the conditions of this agreement, Supercorp will use reasonable endeavours to give effect to Instructions as soon as practicable, but Supercorp is not bound to do so by a particular time.

The Trustees specifically agree that Supercorp need not act if not instructed in writing or need not cease to act if not instructed in writing as the case may be. Supercorp need not act on Instructions if:

  • In Supercorp’s reasonable opinion they are invalid or otherwise cannot be given effect under these terms and conditions;
  • Supercorp reasonably doubts their authenticity;
  • Acting on them would in Supercorp’s opinion be impracticable;
  • Supercorp suspects that they do not comply with relevant legislative or administrative requirements
  • The SMSF is non-complying;
  • Any Fees or Expenses are unpaid within 14 days of invoice; or
  • They were received after Supercorp has determined to terminate the Agreement.

Supercorp is not required to enquire as to whether Instructions are genuine or proper.

The Trustees acknowledge that original documents will be scanned and stored on Supercorp’s computer systems electronically and that the original documents may be destroyed (with the exception of those requiring lodgement with the regulators or other executable documents) or returned at Supercorp’s discretion. The Trustees can request copies of the scanned documents if required but this may incur an additional charge.

If documentation is not provided when requested by Supercorp, Supercorp will not be liable to the Trustees for failure to meet due dates for lodgement of any statutory requirements, monthly reconciling or quarterly reporting to the Trustees.

Investments

The Trustees agree that the they will invest in accordance with the SMSFs investment strategy.

Instalment Warrants and Derivatives

Prior to making an investment in instalment warrants or other derivatives the Trustees must provide Supercorp with a signed Risk Management Statement in a format acceptable to the Australian Regulatory Authorities at the time. Further the Trustees must declare the following in a written statement lodged with Supercorp:

  1. That the Trustees have considered the appropriateness of the investment in relation to the investment strategy and the risk management statement; and
  2. That the Trustees have, after enquiry, confirmed that they are familiar with and understand the operation of these investments and the risks involved; and
  3. That the investment does not constitute a borrowing under the Superannuation Industry (Supervision) Act 1993 and Regulations (SIS).

Unlisted shares and trusts – Australian and International

All investment in unlisted companies’ shares and managed investment schemes must be made via an application form attached to a disclosure document and a confirmation certificate issued detailing the application price and transaction quantity and holding.

Listed International shares

Details of the shares held, the exchanges on which the shares are listed and any transactions and corporate actions must be provided to Supercorp as they occur and annual valuations provided if requested.

Real property

In relation to any residential/commercial real property investment or business real property investment, the Trustees must ensure that:

  • The investment is managed by either a licensed real estate agent, property manager, one of the Trustees or a Fund representative (accompanied by a declaration of understanding responsibility)
  • The investment is insured at all times with a reputable general insurance company for the full replacement value of any buildings, fixtures and fittings
  • Where the property is leased or rented, a written, executed and enforceable lease or rental agreement is in force between the Trustees and an unrelated party and Supercorp is provided with a copy
  • Supercorp must be provided with an annual schedule of income and expenses for the financial year
  • Supercorp is provided with a valuation approximately every three years from a licensed real estate agent or property manager. If required Supercorp can assist in the appointment of a qualified Valuer.

Collectibles including artwork, coins and antiques

In relation to any investment in collectibles including artwork, coins and antiques, the Trustees must:

  • Ensure that the Trustees have a commercial arrangement in place detailing the earnings revenue; and
  • Provide a confirmation certificate detailing the type of investment and purchase price; and
  • Ensure that the investment is insured at all times with a reputable general insurance company for the full replacement value; and
  • Provide an annual independent valuation by an appropriate party (or as agreed with Supercorp).

Fees and Expenses

The Trustees agree to pay Supercorp the Fees. Supercorp may vary the Fees from time to time but will not increase the Fees or add a new Fee unless it has given the Trustees 30 days notice. In the event that the Trustees fail to pay the Fee or a portion of the Fee when it is due Supercorp is entitled to charge an additional dishonour fee and to suspend all services until all outstanding amounts are paid.

GST

All pricing in this agreement and PDS are GST inclusive at the current rate of 10%. In the event that this rate increases, Supercorp is entitled to be paid an additional amount on account of the increase in GST, and Supercorp will be entitled to be reimbursed or indemnified for such amount of GST out of the SMSF.

Expenses

Supercorp is also entitled to recover from the Trustees all Expenses incurred in connection with the provision of the YourSMSF services. The Trustees are responsible for payment of all Expenses in relation to the SMSF, including:

Fees to service providers;

  • Documents required to be submitted to the relevant authorities; and
  • Tax returns, filing fees and supervisory levies;
  • Unless Supercorp has agreed in writing with the Trustees that it will bear the expense out of the Fees.

General

Trustees must pay all fees immediately or no later than 14 days after an invoice has been raised by Supercorp. Payment must be in Australian dollars by cheque or electronic transfer. Additional fees for service may accrue after payment date and will continue until such time as the Fund is fully wound up or this Agreement terminates.

Tax

Supercorp is not responsible for paying any of the Trustee’s tax obligations or the lodging of tax returns, except to the extent that Supercorp provides the YourSMSF services. Supercorp may make all enquiries of the Australian Tax Office and other government bodies, which Supercorp considers necessary for the administration of the SMSF.

Authorities and Indemnities

The Trustees authorise Supercorp to appropriate any credits, payments and other receipts from the Trustees or the SMSF in such manner and order as Supercorp deem fit against any amounts due or owing by the Trustees. Where Supercorp acts in good faith and without gross negligence, fraud or wilful default, Supercorp will not be liable to the Trustees in contract, tort or otherwise for any loss suffered in any way in relation to the SMSF unless the Corporations Act imposes such liability.

The Trustees indemnify Supercorp against any actions, claims, demands, proceedings, costs, damages, expenses, liabilities and losses (including legal costs on a solicitor and client basis) paid, suffered or incurred by Supercorp, directly or indirectly, arising from the Trustee’s failure to comply with any term of the Agreement.

Supercorp may rely on:

Any advice, opinions, statements or information from any person, whether or not instructed by Supercorp, which Supercorp does not doubt to be an appropriate person on the matter; and any other document on which Supercorp considers it is reasonable to rely. Supercorp is not liable for anything done, suffered or omitted by it in good faith in relying upon such advice, opinions, statements or information.

Electronic access and reporting

Where permitted under Superannuation laws, the Trustees:

  • Agree to obtain information concerning the SMSF electronically in lieu of receiving any reports that might otherwise be required;
  • Consent to the continued use of electronic means to provide information to the Trustees; and
  • Agree to provide on an ongoing basis any consent necessary to allow Supercorp to communicate electronically for the purposes of the Agreement.

Unless otherwise expressly specified in the PDS or this Agreement, Supercorp may provide reports or documents electronically.

Related parties

Supercorp may engage other parties, including related parties, in or in connection with the provision of the YourSMSF services and nothing in the Agreement prevents Supercorp or a related party from dealing with itself or a related party or being interested in any contract or transaction with itself or a related party and retaining any benefit from doing so.

Varying the Agreement

Supercorp may vary the Agreement at any time but must give the Trustees 30 days prior written notice if Supercorp reasonably considers the variation will be materially adverse to the interests of the Trustees or the SMSFs members.

Instructions

The Trustees agree that Supercorp is not liable for any delay in execution of Instructions arising from Supercorp following Supercorp’s standard procedures in the usual course of Supercorp’s business, including, without limitation:

  • Ensuring the Instructions do not contravene any of Supercorp’s compliance or other requirements and seeking clarification of an Instruction;
  • Any loss suffered by the Trustees or any third party arising directly or indirectly out of, or in connection with, the Financial Adviser’s use of the Supercorp website (including, but not limited to, Supercorp’s fault or negligence relating to the use of, or maintenance of, the Supercorp website or otherwise);
  • Any error or omission made by the Financial Adviser with respect to the use of the Supercorp website and the submission of Instructions;
  • Any other act, matter, thing or condition beyond Supercorp’s reasonable control; except to the extent required by law.

Prior operation

If the SMSF has been operating prior to the date this Agreement commences: Supercorp may carry out due diligence on the operation and administration of the SMSF and, if in its absolute discretion, Supercorp is not satisfied that:

  • The SMSF has been operated or administered in a prudential proper manner;
  • The SMSF has not been administered to a standard that Supercorp considers appropriate; or
  • The operation or administration of the SMSF has not complied with applicable laws;

Supercorp may, in its absolute discretion:

  • Terminate this Agreement; or
  • Agree with the Trustees a program to rectify the problems identified by Supercorp, in which case Supercorp may specify an additional fee that is to be paid to Supercorp for its assistance in rectifying the problems and the Trustees may pay this fee on the terms and conditions specified by Supercorp or terminate this Agreement.
  • The Trustees must provide all assistance that Supercorp considers necessary for the purpose of completing the due diligence review referred to above.

Indemnity

The Trustees indemnify Supercorp against any actions, claims, demands, proceedings, costs, damages, expenses, liabilities and losses (including legal costs on a solicitor and client basis) paid, suffered or incurred by Supercorp, directly or indirectly, arising from the operation or administration of the SMSF prior to commencement of this Agreement.

Change of Administrator

Supercorp may arrange for another person to perform Supercorp’s functions under the Agreement. If Supercorp does so, it must give the Trustees 30 days notice.

Term

The Agreement begins on the date that the Application is executed by the Trustees or the date that the Trustees accept services from Supercorp whichever is the sooner and continues for a minimum of twelve months or until:

  • The winding up of the SMSF is complete; or
  • A reasonable period of time after the Trustees give written notice to Supercorp terminating the Agreement; or
  • An order is made for the liquidation of Supercorp except for the purpose of amalgamation or reconstruction; or
  • A receiver, manager, administrator or controller is appointed to Supercorp’s assets or undertaking or any part of it; or
  • If Supercorp is in default of any material obligation under these terms and conditions and has failed to rectify the default within 30 days (or any other period agreed to by the Trustees) after being so required by the Trustees,
  • There is a change of administrator pursuant to this agreement.

Supercorp may also terminate the Agreement if:

  • The Trustees fail to provide the information which, in Supercorp’s opinion, is required by Supercorp to effectively provide the YourSMSF services; or
  • Any fees payable under the Agreement are in arrears by greater than three months; or
  • The SMSF becomes non-complying and remains non-complying for three months; or
  • Supercorp gives written notice to the Trustees terminating the Agreement.

Following termination of the Agreement and payment by the Trustees of any outstanding Fees or Expenses, the Trustees may request Supercorp to prepare and deliver the SMSFs transaction history data, in a form and format determined by Supercorp, to the Trustees or the Trustees’ nominee.

Notices

Electronic communications between the Trustees and Supercorp are taken to be sent and received as if governed by the Electronic Transactions Act 1999 (Commonwealth). Notices and Instructions given to Supercorp are taken to be given by all the Trustees, provided the notice or Instruction has been executed by one or more of the Trustees or the Instruction is via the Supercorp website in the usual form that Instructions are given via the Supercorp website, and Supercorp has no reason to suspect that the Instruction is not from one of the Trustees. Supercorp is not required to verify or otherwise confirm with the Trustees the veracity of a notice or Instruction. Supercorp may act in reliance on any notice or Instruction and the Trustees indemnify Supercorp for any losses or expenses incurred by Supercorp as a result of relying on such a notice or Instruction.

Applicable Law

These terms and conditions are subject to the laws of Queensland and the parties agree to submit to the exclusive jurisdiction of the courts of Queensland.

Interpretation

In these terms and conditions:
Headings are for reference only and do not effect these terms and conditions. The singular includes the plural and vice versa. A reference to Trustees includes the Trustee’s executors, administrators, successors, personal representatives and assigns. Unless the context otherwise provides, words and expressions used in Superannuation laws have the same meaning in these terms and conditions. The word including or includes means including but not limited to, or includes without limitation. References to any document, including any electronic document, website or webpage, any application and these conditions, means that document as amended, novated, replaced or updated.

Definitions

In this Administration Agreement the following words have the meanings shown and related words and expressions have corresponding meanings:

Agreement
Means this Administration Agreement.
Application
Means the YourSMSF Fund Application submitted to Supercorp.
Assets
Mean shares, managed investments and such other assets, or classes or types of assets (including money).
Expenses
Means charges (including brokerage), expenses, taxes (including GST), levies, imposts, deductions, withholdings and duties incurred in relation to any transaction or otherwise referable to the SMSF.
Fees
Means the fees specified in the SMSFs PDS (or as later amended in writing) as the fees payable in return for the provision of the YourSMSF services and may include additional fees charged on a time and materials basis for services which are in Supercorp’s absolute opinion outside of the scope of the routine administration services.
Financial Adviser
Means the person, if any, most recently recorded in Supercorp’s records as having been appointed as the financial adviser of the SMSF.
Fund or SMSF
Means the Self Managed Superannuation Fund named in the YourSMSF Fund Application.
GST
Means a goods and services tax, value added tax, consumption tax or similar tax or a tax on services only.
Instructions
Means a direction made by the Trustees in relation to the SMSF which is in written form (e-mail, fax or letter) and may include a direction cancelling or suspending an earlier Instruction.
Managed investments
Means managed investment schemes as defined in the Corporations Act.
PDS
Means this Product Disclosure Statement.
YourSMSF services
Means the administration services provided to the Trustees by Supercorp in relation to the SMSF as determined by the selection of services which are offered to the Trustee by Supercorp as stated in this PDS.
Trustees
Mean the directors of the corporate trustee or the individual trustees of the SMSF.

This agreement can also be found on pages 31-36 of our Product Disclosure Statement:

Annual Service PDS