SMSF Accounting Services
We offer a range of SMSF Accounting Services for the Newcastle area including:
- Ongoing entry and reconciliation of transactions via Class Super
- Preparing financial reports either annually or more frequently as required
- Preparing the audit file for submission to the independent auditor
- Setups and wind ups of funds
- Tax planning reports and tax advice
- Advice of tax consequences and SIS Act rules around particular investment ideas
- Submitting all the ATO lodgements that may be required such as:
- Transfer balance account reports
- The annual tax return for the fund
- Business activity statements for funds registered for GST such as those holding commercial property which exceeds the registration threshold
- Instalment activity statements
SMSF Audit Services
It is a legal requirement that all SMSFs are audited every financial year by an independent ASIC registered auditor. Throughout this audit, a review with a sceptical eye will take place into the compliance documents, financial reports and supporting information. Although we cannot complete this audit on behalf of our accounting clients, we do facilitate this process to ensure it is as simple and painless as possible. Click here for more information about how SMSF Audits work.
Your independent auditor will go over the following:
- SMSF Deed
- Investment Strategy for the current year
- SMSF Tax Return
- Subsequent events
- Compliance Documents such as trustee resolutions and minutes
- Financial Reports
- Copies of source documents
Every fund must submit an annual tax return to the ATO. Your funds return will detail the financial decisions made by the members in that year and outline your profit/loss, tax payable along with a number of compliance items. In order to submit your return, you must get your fund audited by an independent auditor prior to the lodgement which will confirm to the tax office if your fund has been compliant during the year. The consequences for non-compliance can be quite harsh including the loss of the concessional tax rates increasing the tax payable by the fund from 15% up to the top marginal tax rate.
Generally, for funds with a good track record with the ATO, the deadline for the SMSF to lodge its return is May 15th however, in the case of first year funds this is decreased to February 28th.
Wholesale SMSF Services
SMSF Australia provides our services direct to SMSF trustees or on a white-labelled basis to other accounting firms. Our wholesale arm of the business uses the Class Super system to complete SMSF work for other accounting firms while they retain complete visibility of the work and directly manage the client relationship. We are a trusted partner of firms around Australia and can complete white label work and outsourcing contracts with ease. For confidential references from other accounting firms who enjoy our white labelled service please contact us today.
Speak to a Newcastle SMSF Specialist Today
Do you need SMSF Accounting Services? Reach out to us today for a no obligation confidential quote on how we can assist with your SMSF plans.
Fill in your details on the contact us formcontact us form or give us a call and one of our friendly team of SMSF Specialists will be happy to assist!
Frequently Asked Questions
How much does it cost for an SMSF Setup in Newcastle?
The price for an SMSF Setup ion Newcastle (and anywhere else in Australia) is $2,000+GST which covers the entire gambit of services required to actually get your fund setup and ready to invest. We believe in transparent pricing up front so this fee will cover literally everything including:
- ASIC fee for the Corporate Trustee
- Legal costs for the SMSF Deed and the trustee constitution and other documents
- Compliance documents such as minutes, trustee declarations
- ATO registrations
- The Class Super Platform fee
- Setup of the electronic service address so the fund can receive contributions
- The rollovers from any existing super funds
- Accounting support to complete the process and provide you with advice along the way
What is the SMSF Setup process?
When you have made the decision, either alone or with your Financial Planner, to set up a Self Managed Super Fund our friendly team is able to work with you to complete the work although there are still items you will need to do including:
- Choosing a name for the fund and the corporate trustee. The SMSF name does not need to be unique but the corporate trustee one does so remember to check the ASIC registry for a name not already taken
- Filling in the SMSF Setup forms which we will email you through electronically and provide documents including a Photo ID for verification purposes
- If you do not already have a DIN, you will need to complete the ASIC process to apply for a Directors Identification Number as part of the new ASIC rules to combat phoenix companies and identity fraud
- Give our team the details of any existing super fund accounts you would like rolled over into the new SMSF
- When completed sign all the documents for the setup and take them to the bank of your choice to organise a new bank account in the name of the SMSF
Can accountants provide SMSF advice?
We can provide advice on every aspect of the accounting and taxation of an SMSF but we are not financial planners and cannot answer investment related questions. This is a good thing as we are very skilled at the accounting and legal aspects of a super fund but have no idea if FMG or BHP is the better iron ore company! Keep in mind this is not a personal choice but a legislative requirement, we do not hold an AFSL nor do we intent too.
That said, your SMSF Accountant has an important part to place in giving advice on the compliance documents, setup, creation, operation, and wind-up of your SMSF fund along with ongoing tax planning and support.
In short, yes.
The longer answer is that there are lots of detailed rules about how an SMSF deals with the ownership of direct property such as:
- You cannot live in, utilise or rent a residential property to a family member or other related party
- Commercial properties can be leased to related party companies if zoned correctly and it must then be at market rates that have been independently obtained for the fund
- The investment strategy the trustees have created must allow for direct property investments as must the SMSF Deed. This strategy should also discuss how the illiquid asset fits within the overall investments of the SMSF especially where a property is a large part of the total assets of the fund.
Can my SMSF borrow money?
Yes it can in some circumstances using a Limited Recourse Borrowing Arrangement. For example you can organise a mortgage for direct property purchases, whether residential or commercial, via a specialised legal structure known as a Bare Trust. This specialised trust allows the SMSF to borrow money against the property without breaching the Superannuation Industry (Supervision) Act 1993 which contains a general prohibition against SMSF borrowings.
The actual process of borrowing money in a SMSF has become more challenging since the royal commission as the major banks have all ceased lending to super funds due to the compliance risks. This means new SMSF loans are stuck with second-tier lenders who are often more expensive both in terms of interest rates and fees.
If it is permitted by your investment strategy, you can certainly invest in cryptocurrencies through your SMSF. These are seen as just another asset class by the ATO and not as a currency which means that any exchange between crypto investments is considered a purchase and disposal which will lead to tax consequences. This means purchasing Bitcoin to then convert to Dogecoin will involve a capital gain or loss on the Bitcoin even if it was only held in Bitcoin for a tiny amount of time. This means that the compliance of Crypto investments can be challenging depending on the exchange used and its reporting abilities.
When you setup the account on the exchange also must make sure it is setup in the name of the fund and not the name of a member as otherwise it can be seen as an illegal withdrawal of your super if it is in a wallet not in the name of the fund.
Self Managed Super Funds give trustees the power to choose their own investments and take control of their retirement planning. Within an SMSF you are able to invest in a wide range of asset classes including bullion, precious metals, shares (both listed and unlisted), property, private loans and digital assets such as cryptocurrency. This is regulated by the ATO under the auspices of the Superannuation Industry (Supervision) Act 1993.
Our accredited SMSF Accountants are familiar with the Newcastle area and the needs of smaller regional centres in NSW. Our director Emily Cooper has been trained and accredited by the SMSF Association of Australia that is the independent body responsible for the super space. Our firm also boast a number of Chartered Tax Advisors qualified via the Tax Institute of Australia, a qualification that shows a mark of excellence and experience in the field of taxation.