I have an eSuperfund fund (I'm happy with it as I just trade shares, have cash and buy PMs). eSuperfund are the accountants and auditors - you are the trustee (or director of the corporate trustee) and can choose whoever you like to perform this function. I signed up when they had a free audit for 2 years deal so if I leave before I have paid anything at all there is an exit fee of 1 years worth of audit and accountancy (which I think is fair actually as I didn't even pay establishment fees for fund) The problem you may have is that the eSuperfund deed may be worded in such a way that purchase of overseas property may not be allowed so even if you move from them you may find it difficult to find an accountant and auditor who will sign off on the purchase. As a matter of interest - what are the details of the purchase if you don't mind me asking. I may be able to help a little with whether the purchase would comply with Australian law. Cheers
Yeah sure, I would appreciate all advice. The purchase is a leasehold over land for 20 + 20 years. The land is already built on but will be developed more and a resort business will be using it to run a resort property. The land owner, my SMSF will be receiving rent from the resort company for using it. Can I change the SMSF rules if I move from Esuper? Thanks
So you are not purchasing the property just the lease over the land so there is no title just smoke and mirrors. Is there any borrowings involved or would the SMSF fund it our of current cash flow? Kind Regards non recourse
how would you propose the audit take place on this investment? Would you be prepared to have the auditor travel at your cost? Remember the Auditor must be savvy on SIS act
Yes, smoke and mirrors basically. There would be a land certificate telling of the term in years and right to use, but no title. Pretty much unauditable, although I have an accountant who would appreciate my paying for his surfing holiday.
You need to tread carefully with an SMSF. Your super is there soley to provide you with a pension. Its called the sole purpose test. If your in an SMSF the tax office polices this to the nth degree and they will strip your fund of all its assets if you give them half a chance. You cannot have an SMSF that runs a business (You can but you have to dodge the bullets) There are special tax rules http://www.cleardocs.com/clearlaw/superannuation/smsf-sole-purpose-test.html Kind Regards non recourse
I just spoke to our family accountant today and she can set up a SMSF for around $1500 dollars, she will set it up as a corporate trustee, her yearly fees are around $990 and this includes her audit and external audit. I will most likely go down this path and spend the money with her and shes very cluey with her advice and setting everything up by the book.
Those fees you have been quoted are reasonable. The SMSF trust Deed when purchased by a third party is around $660-720 the real cost is about$450 but its better to have your i's dotted and t's crossed you don't want to stuff up. The corporate Trustee is another $700- $900. The ASIC one if you buy direct is again around $400 What I would do differently is have both the SMSF Trust Deed and the Trustee company documentation checked out by an specialist SMSF solicitor. Cost? Probably another $400 Why? If your accountant stuffs up he is not legally covered he may have people who are supplying him who are but you don't want to find out there are problems after the fact. The NTAA (National Tax Accountants Association) could point you to a solicitor who would give it the once over. If your accountant is a member he may have already done this. I prefer using a solicitor when setting up any legal structure. Having said that your accountant is on the ball if he is setting up a corporate trustee for you; its a much smarter way to go. Kind Regards non recourse
Hi binginbarrel I do not think this part of your question was answered. Most SMSF trust deeds provide an easy way to make an amendment. Have a look at your trust deed at the "amending this deed" section (or similar). The details should be in there.
I have updated the OP with first year running costs and a little analysis I did http://forums.silverstackers.com/topic-18559-setting-up-a-smsf-w-corporate-trustee-101.html
