In order to get the most out of your Superannuation and planning for retirement we have listed some of the most frequently asked questions we are asked by our clients, so that you are more fully informed. However, to help you make up your mind or to answer any queries you may have please don’t hesitate to contact us.
- Why should I bother with a DIY Superannuation Fund?
- Can my Superannuation Fund lend monies to my company?
- What is required to take over the auditing and taxation work of an existing Superannuation or Pension Fund?
- Can we nominate the auditor we want?
- I have read your fee structure and I seem to be outside your guidelines. What will my fees be?
- How can I work out an investment strategy?
- What should we call our DIY Superannuation Fund?
- How long does it take to rollover my existing Superannuation Fund monies to my new Superannuation Fund?
- Why do I need a valuation of my property in the Fund every few years?
- I am drawing a pension from my DIY Superannuation Fund and I am about to take another job. Can my employer pay the complying 9% Super into my Fund?
1. Why should I bother with a DIY Superannuation Fund?
Our Benefits of DIY Super and DIY Pension sections of our website have a lot of information on the advantages of setting up your own DIY Superannuation/Pension Fund. In summary, these benefits are:
- Simple and inexpensive structure
- Protected interests
- Maximum control
- Investment flexibility
- Possibility of better returns
- Avoiding charges and fees
- Tax planning and tax advantages
- Bankruptcy protection
- Estate planning
- Family wealth accumulation
- Asset retention
- Borrowing to purchase property and/or shares
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2. Can my Superannuation Fund lend monies to my company?
Yes. There is a 5% limit of the market value of the Fund when the loan is made. It is necessary to pay interest on the loan. You cannot take a personal loan from the Fund.
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3. What is required to take over the auditing and taxation work of an existing Superannuation or Pension Fund?
In most cases you need to provide a copy of the last annual financial statements and taxation return. Other information we usually require is:
- A copy of trust deed and any amendments and other statutory documents.
- The minute book and register including appointments of trustee and members. Please note you may only have minutes rather than a minute book.
- A copy of your investment strategy.
- A copy of the Australian Taxation Office advice that your Fund is a regulated and/or complying Fund.
- Details of all trustees and members.
- The CGT (Capital Gains Tax) history of all assets (acquisition dates and prices).
- Details of the full member balance including undeducted amounts and eligible service commencement dates.
If you do not have any of this information, it may be with your current DIY Fund administrator (Accountant) and you can obtain it from them. If you prefer, we can write to them and obtain the information for you.
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4. Can we nominate the auditor we want?
Yes. However we charge an extra fee of $110 when an alternative auditor is appointed, to cover our additional costs.
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5. I have read your fee structure and I seem to be outside your guidelines. What will my fees be?
Once we know the details of your individual circumstances through a free half hour interview in person or by telephone, we will be able to advise you on your individual fee structure better. Typically we have not found this to be a barrier to making a decision. Our fees are very competitive and we believe offer excellent value for money.
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6. How can I work out an investment strategy?
The ATO has publications on their website related to what is required for an investment strategy. We cannot prepare your strategy as we are not financial planners, but we can comment on what your strategy should include by referring to information supplied by the ATO. In addition, if required, we can recommend a financial planner who can help you to identify the most appropriate investment strategy.
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7. What should we call our DIY Superannuation Fund?
At Crea & Co, we prefer something with the name “Super” in it as everyone then knows the purpose of the Fund. However you do not need to have Super or your own name for your Fund e.g. if your names are Bill and Maria Jones, you could call it “Longview Trust”, or some other name. Alternatively you could consider calling it some special or family name e.g. Maria's maiden name may have been Ruggiero so you may decide to call the Fund Ruggiero Super Fund.
You do not need to be concerned if someone else in Australia has the same name as your Super Fund, as there is no registration of the name of Super Funds and each new Super Fund gets it own unique Tax File Number and Australian Business Number (ABN).
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8. How long does it take to rollover my existing Superannuation Fund monies to my new Superannuation Fund?
First of all you need to set up your Superannuation Fund deed and then we obtain a Tax File Number and ABN number for you. The rollover form acquired from where you presently have your Superannuation Fund monies can then be sent to the Fund, so that they can send the rollover papers and cheque payable to your new DIY Superannuation Fund.
The length of time taken by Superannuation Fund institutions to do this can vary. You should allow between two weeks and two months, although by law it is meant to take no longer than 30 days.
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9. Why do I need a valuation of my property in the Fund every few years?
Accounting rules require a valuation every three years and this is especially applicable to the commencement of pensions and during a pension.
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10. I am drawing a pension from my DIY Superannuation Fund and I am about to take another job. Can my employer pay the compulsory 9% Super into my Fund?
Yes. Your DIY Superannuation Fund and Pension Fund are governed by the same trust deed and it is simply a matter of having accumulation Superannuation monies and Pension monies under the same fund.
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