Qi Super Self Managed Superannuation Information Guide

Transcription

1 Prepared by Qi Financial Pty Ltd ABN AFSL Qi Super Self Managed Superannuation Information Guide This Information Guide is dated January Advice Taxation Accounting Corporate Secretarial Superannuation Insurance Investments Qi Financial Home Loans Pty Ltd Qi Super Information Guide Page 1

2 Set & secure your wealth in Qi Super today. Qi Financial Pty Ltd Qi Super Information Guide Page 2

3 The basics. This guide has been prepared to help you understand the benefits, features and costs of a Self Managed Superannuation Fund (SMSF). WHAT IS AN SMSF? An SMSF is a super fund where the members are trustees of their own fund. Running your own super fund gives you: Greater control of your super More flexibility and investment choice An alternative to large industry or retail super funds Flexibility to implement tax effective strategies Ability to borrow to purchase property Other Requirements: An SMSF can have a maximum of 4 members The fund can have individual trustees or directors of a company that is a corporate trustee No member of the fund is an employee of another member of the fund, unless they are related Members must be tax residents of Australia THE STRUCTURE OF AN SMSF Trustee Company or Individual Trustee (ABC Pty Ltd or John and Mary Smith) SMSF (Smith Family Super Fund) Member (John Smith) Member (Mary Smith) Accumulation Pension Accumulation Pension Qi Financial Pty Ltd Qi Super Information Guide Page 3

4 Why choose Qi Super? Qi Super is committed to offering a wiser choice to future proofing the financial wellbeing of all our clients. CONTROL, FLEXIBILITY AND TRANSPARENCY Qi Super provides you with all the tools, knowledge and options necessary to take control of your retirement planning. We can help you choose the best structure for your fund and implement a wide range of investments and strategies. Our fixed fee structure is transparent which means that there are no hidden costs and you can see exactly how much you are paying and the list of services you are receiving. ONLINE ACCESS TO QI SUPER PORTAL Your Qi Super online SMSF login allows you to view and monitor all details of your fund, bank transactions, asset allocations, investment returns, member balances, contributions caps, insurance and much more. If you prefer, you can also contact us via phone or to request information on your fund. INVESTMENT FLEXIBILITY When you establish your SMSF with Qi Super, you have no restrictions on what you can invest in. You also have the choice of developing your own investment strategy suitable to your needs. You have the flexibility to invest in a wide range of assets which include direct shares, term deposits, managed funds, commercial and residential property, collectables and much more. BORROWING We can assist you with establishing a Limited Recourse Borrowing Arrangement where your fund can borrow money to invest in property, direct shares etc. We can help you through each step of the process to ensure that the correct structure is established to allow your SMSF to borrow funds to purchase an asset. We can also assist you with the loan approval process. PERSONAL SERVICE Our dedicated team is here to help you. You have the flexibility to choose the level of advice you need. ADDITIONAL BENEFITS Under our Complete package, you will have direct phone and access to a dedicated adviser and accountant who can provide full personalised advice with regular review of your fund. Also, as part of our Complete package, you will have access to strategic financial advice, investment advice, property advice, estate planning and mortgage services. Qi Financial Pty Ltd Qi Super Information Guide Page 4

5 Qi Super services KEY FEATURES We offer a comprehensive and specialised service from the establishment of your fund to ongoing administration and compliance for your SMSF. Feature SMSF Establishment Details We do all the necessary ground work to help you establish your fund: Establish a company to act as corporate trustee (optional) Process member application forms Register the fund with the ATO and apply for an ABN and TFN Appoint trustees and prepare trustee minutes Create an investment strategy Establish a bank account for your fund Assist with rollover of superannuation benefits and contributions Open a Desktop Broker (Bell Direct) share trading account Trust Deed We use an external legal service provider who will: Provide a compliant trust deed to establish the SMSF Prepare all required fund establishment minutes Amend your existing trust deed (if necessary) Insurance Review We assist with a compulsory review of your insurance needs: Consider appropriate Life, Total & Permanent Disability, Critical Illness and Income Protection insurance Recommend the best way to structure your policies Provide quotes for insurance Implement any required insurance and manage the application process on your behalf Ongoing SMSF Administration Annual Audit and Accounting We manage all aspects in relation to the ongoing administration of your fund including maintenance of the corporate registry, member details, investment strategies, insurance details and fund transactions. We handle all your taxation, audit accounting requirements: Process and reconcile transactions within your SMSF on a monthly basis Prepare and lodge the fund s tax return Prepare accounting requirements such as GST, BAS and IAS (if applicable) Calculate tax liabilities for the fund Provide all supporting documents and reports to the auditor Online access Your Qi Super online SMSF login allows you to view and monitor all details of your fund, bank transactions, asset allocations, investment returns, member balances, contributions caps, insurance and much more. Qi Financial Pty Ltd Qi Super Information Guide Page 5

6 Getting started SETTING UP AN SMSF Once you are ready to set up your SMSF, we provide you with all the necessary documents and guide you through the entire process. 1. Name your fund and trustee company E.g. Smith Super Pty Ltd ATF (as trustee for) The Smith Family Superannuation Fund 2. Establish your SMSF trust deed Establish your SMSF trust deed and register your fund with the ATO. All necessary documentumentation will be provided for you to sign. 3. Consider Insurance As trustees of an SMSF it is a regulatory requirement that you consider an insurance strategy and then review this consideration regularly. 4. Rollover your super We will assist you with transferring your existing super into your SMSF. 5. Qi Super Induction We will conduct an induction to run you through how to monitor and manage your SMSF online. 6. Invest and manage your SMSF We will prepare an investment strategy for you and assist with the implementation of investments (Complete Package only). 7. Ongoing Administration Conduct a regular review of your investment strategy, annual audit, processing and compliance checks of your SMSF. TRANSFFERRING YOUR EXISTING SMSF If your fund is already established, we can help you bring the financials and accounts up to date, prepare any trust deed amendments, open a bank account (if required) or even amend the structure of your fund. Qi Financial Pty Ltd Qi Super Information Guide Page 6

7 Fees and costs Please note, all fees and costs listed are inclusive of GST. Establishing a new SMSF $ Establishment of fund 500 Establishment of corporate trustee company 990 Preparation of trust deed 460 Transferring your existing SMSF $ Update or amendment of your SMSF trust deed (optional) 460 Preparation of prior years accounts (if required) 2,500 * Depending on the complexity of your fund. for each oustanding year * ONGOING SMSF ADMINISTRATION The fees you pay reflect the level of service in the package that you choose for the management of your Self Managed Superannuation Fund. Fees are charged at a fixed monthly rate (including GST). Complete Package The complete package offers full flexibility and no restrictions on what you can invest in. You will also have direct phone and access to a dedicated adviser and accountant who can provide full personalised advice including the regular review of your fund. With our Complete Package, you also have access to strategic financial advice, investment advice, property advice, estate planning and mortgage services. Essentials Package The essentials package is right for you if you wish to handle the investment and strategy of the fund yourself. You are not restricted by what you can invest in, however we cannot provide any personalised strategic advice and you are responsible for all required compliance. Essentials Package $ Administration 295 per month The monthly rate applicable to you will depend on the total net balance of your fund. Complete Package $ Additional assets not recommended by Qi Wealth Property held in fund Nil 50 per month Ongoing Administration Additional assets not recommended by Qi Wealth Asset Management Fee Property held in fund 395 per month Nil Up to 1.1% per annum 50 per month Head Start Package We offer the head start package for those with smaller balances. It provides a limited investment menu however with our expertise and advice; we will help you grow your balance. Once your balance reaches $200,001, you will automatically be upgraded to the Complete Package. Qi Financial Pty Ltd Qi Super Information Guide Page 7

8 Head Start Package $ Fund balance: Up to $100,000 Up to $200,000 Additional assets not recommended by Qi Wealth 125 per month 165 per month Not available Asset Management Fee Up to 1.1% per annum Property held in fund Residential Property Purchase Not available Property Purchase in SMSF $ Establishment of corporate property trustee company and preparation of stamping requirements for commercial loans Preparation of property trust deed (paid to Gadens Lawyers) 1, Loan documentation fee 880 Bank establishment fee (approximate fee charged by Financier) Stamping of property trust deed (paid to Office of State Revenue) Establishment of corporate property trustee company and property trust deed for related party loans 1, ,200 Government charges such as mortgage stamp duty and solicitor legal fees may apply. All other costs Other costs $ ATO Levy ASIC Audit Fee Actuarial certificate (if required) Trust deed updates Desktop Broker share trading brokerage (if applicable) Contributions Tax Division 293 Tax (applicable for individuals with income greater than $250,000 p.a.) Wind up or transfer fees * If you wind up or transfer your SMSF within 12 months of establishing your fund with Qi Wealth, you will be required to pay the balance of the first 12 months of administration fees. If you wind up your fund after 12 months establishment, you will be required to pay a wind up fee equal to 3 months of your monthly administration fees, provided you have already paid the balance of the first 12 months of administration fees. As advised by the ATO 48 per annum 40 per annum 200 per annum 220 per update or 0.5% per trade (whichever is greater) 15% of assessable contributions per annum 15% of assessable contribtuions above $250,000 per annum threshold The balance of 12 months Administration Fees * The wind up fees are payable as stated above provided you have already paid the fund establishment fee and your monthly fees from the month after your fund is established. If this is not the case, you will be invoiced the cost of the wind up fees plus any outstanding fees. Qi Financial Pty Ltd Qi Super Information Guide Page 8

9 Explanation of fees and costs We have outlined below an explanation of the fees and costs involved in setting up and managing your Self Managed Superannuation Fund (SMSF). Any applicable fees will be deducted from your SMSF cash account in accordance with the Direct Debit request entered into when you establish your fund with Qi Wealth. ESTABLISHMENT FEE The establishment fee covers the cost of setting up your SMSF and is deducted from your SMSF bank account. ONGOING ADMINISTRATION FEE This fee covers the ongoing administration and processing of accounts for your SMSF and is deducted from your SMSF bank account on the 1st day of every month in arrears commencing from the date the fund is established. This is also deductible to your fund. AUDIT Your fund is required to undertake an audit each year. We provide the services of an independent external auditor. PROPERTY PURCHASE AND LIMITED RECOURSE BORROWING ARRANGEMENTS (LRBA) The costs involved in purchasing a property and establishing a Limited Recourse Borrowing Arrangement (LRBA) for your fund are outlined on page 8. These are the fees charged by the external legal provider and financier for a standard borrowing arrangement. All legal and financier fees are paid directly to these providers and are not fees of Qi Wealth. CHANGES TO FEES Qi Wealth reserves the right to increase the administration fees in line with the costs experienced by us in providing the SMSF administration service. Increases in previous years have generally been in line with standard inflation measures such as CPI and AWOTE. If we decide to increase any of the fees set out on pages 7 and 8, or introduce new fees, we will provide you with at least 30 days notice of the change. ALL OTHER COSTS ATO Levy and ASIC The Supervisory Levy is a fee charged by the ATO on each SMSF. When your SMSF is assessed for tax, this levy is added to the total payable to the ATO. Actuarial certificates If your fund requires an actuarial certificate, we will deduct this fee from your SMSF bank account. Trust deed updates If your fund requires an update to the trust deed, we will deduct this fee from your SMSF bank account. Share Trading Brokerage is charged per trade when you buy or sell shares or ETF s on your Desktop Broker share trading account. Brokerage is deducted from the final value of your trade. Contributions tax The income of your SMSF is generally taxed at a concessional rate of 15%. The most common types of assessable income for complying SMSFs are assessable contributions, net capital gains, interest, dividends and rent. Contributions tax is assessed each year and is payable to the ATO from your SMSF. Division 293 tax Division 293 is an additional 15% tax imposed on relevant concessionally taxed superannuation contributions (referred to as low tax contributions) made to superannuation funds by individuals whose income exceeds $300,000. The taxable contributions will be the lesser of the low tax contributions and the amount above the $300,000. Division 293 tax is assessed each year and is payable to the ATO from your SMSF. Additional fees Additional fees may apply for more complex funds however we will always discuss these with you in advance. Qi Financial Pty Ltd Qi Super Information Guide Page 9

10 Important information It is important you consider the potential advantages and disadvantages before establishing an SMSF. THE ADVANTAGES AND DISADVANTAGES OF SMSFS Advantages Control - As members of an SMSF you have complete control over your fund s investments, however, you must develop and maintain an appropriate investment objective and strategy and operate within the Superannuation Industry (Supervision) Act 1993 at all times. Flexibility - Control of your fund means you have the option and flexibility to invest in a range of assets including bank deposits, direct property, shares, managed funds and pooled investment trusts. You re also able to switch or modify those investments as desired Control Over Design and Operation - As members are the trustees of the fund, you have a degree of control over the rules of the fund and how your fund operates. For example, your fund can run both accumulation and pension phases (providing preservation rules have been met). Specific rules about the payment of benefits can also be introduced, for example, restricting when a child can commute a pension. Estate Planning - Your fund can provide benefits to you, your spouse and even your children. This means that the fund can continue after your death which can allow for many estate planning benefits. Cost Savings as your Balance Grows - Generally, SMSFs are administered with fixed costs. So the greater the account balance, the more cost effective the SMSF is. Also, SMSFs do not have the same prudential regulation and do not have to be licensed. Tax Concessions - The fund can provide tax concessions such as the deferral of lump sum tax in the pension phase. There are also opportunities to use credits from franked dividends to reduce the 15% tax rate. Advantages for Small Business - Typically many small business owners are able to utilise super rules which permit SMSFs to invest in business real property either directly or through non geared unit trusts or warrant trusts and lease back the property to a related party. Disadvantages Responsibility of Trustees - All decisions and responsibilities associated with managing the fund rest with you as trustee. In addition, all superannuation funds have to comply with certain rules, legislation and deadlines. As trustee, you re responsible for making sure the fund meets all legislative requirements on time hence members must ensure the fund remains compliant at all times. Trustees can be penalised for breaches of the legislation. Limited Ability to Diversify Investments - Although you are generally able to invest in a greater range of assets, you may not have sufficient money in the fund to diversify across them all. You also need to monitor the investment performance of the fund. You could simplify these tasks by investing in managed/pooled investments. Costs of Maintaining your Self-Managed Superannuation Fund - Depending on the types of investments in the fund, the balance of your fund or the administration and consulting assistance you receive, it may be expensive to maintain the fund relative to other retail fund offerings. No Access to Superannuation Complaints Tribunal - As a member of an SMSF you do not have the ability to take complaints or disputes to the Superannuation Complaints Tribunal. You must therefore have any matters heard by the judicial system which may incur significant costs and result in delays. Qi Financial Pty Ltd Qi Super Information Guide Page 10

11 Qi Contacts SETTING UP YOUR SMSF If you have any queries in relation to establishment of your Self Managed Superannuation Fund, please contact us. Office Address Qi Wealth Level 7, 32 Martin Place Sydney NSW 2000 Mailing Address Qi Wealth GPO Box 4556 Sydney NSW 2000 Office Phone admin@qiwealth.com.au Website YOUR SUPPORT TEAM If you have any queries in relation to the ongoing management amd administration of your SMSF, your Qi Super team are here to help: Jarrad Bleechmore SMSF Specialist jarrad.bleechmore@qiwealth.com.au Narissa Stanley SMSF Accountant narissa.stanley@qiwealth.com.au Lauren Chan SMSF Analyst lauren.chan@qiwealth.com.au Krystal Day SMSF Team Assistant krystal.day@qiwealth.com.au Qi Financial Pty Ltd Qi Super Information Guide Page 11

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