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Saturday, 10 January 2009

SMSF annual admin fee due

Our self-managed superannuation fund (SMSF) administrator, eSuperFund sent us an email notification that they had tried to direct debti the annual $600 fee for administration services, tax return and audit from our SMSF bank account on 2 January, but there were insufficient funds available. They'll try again next Tuesday and a second failed payment would result in a $50 late payment fee. The problem was due to our employer not processing any contributions since the monthly SGL and salary sacrifice amounts were paid early last November. At the time the payroll office advised that the employer superannuation payments would be made monthly this year, so I transferred the September contribution immediately into our Vanguard investment account, leaving just $100 in the SMSF bank account. Unfortunately they've now decided to go back to only paying Quarterly, so the Oct-Dec payments won't be processed until the end of this month.

I don't want to have to withdraw any of the SMSF investment with Vanguard, so I instead processed a $500 undeducted contribution from DW into the SMSF bank account. We were intending that DW would make an after-tax $1000 contribution this year anyhow, so that she'd benefit from the government's $1500 co-contribution.

We still haven't received the SMSF tax return for 2007/8 from the administrator. On the one hand I'd like to get the return soon, so I can check it for any errors in the allocation of contributions between DW and myself, investment income etc., and to be reassured that we will actually get a decent service from eSuperFund for our annual fee. On the other hand, soon after the SMSF tax return is lodged we will have to may the 15% contribution tax on last year's contributions plus tax on investment returns, and I was planning on keeping the Sep-Dec contributions sitting in the SMSF bank account to cover the tax liability.

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6 comments:

Ian Harrison said...

Hi
My wife and I are also clients of eSuperfund. This is the first year that they have been required to assist us with our SMSF tax return. With the lodgement due on the 28th February I am becoming increasingly concerned at not having received any documentation from eSuperfund to date, despite contacting them twice.

Do you think these concerns may be valid?

Ian

enoughwealth@yahoo.com said...

This will be our second SMSF tax return from eSuperFund, but the first one was very simple as we'd only just setup the account and deposited a few thousand into the bank account. This year's calculations are more complex, so I'm slightly anxious to check through the tax return for any problems. Last year we were sent the tax return to check and sign-off well before the lodgement date. With SMSF returns due by the 28th of February the returns should all be nearly completed by now.

I wouldn't be too worried that they haven't sent documentation yet, but they should be able to provide a good indication of when the return will be sent to you to sign. I may give them another call tomorrow to check on progress.

I don't have a clear idea of how big/professional eSuperFund actually is, so I'm a bit concerned that they may turn out to be a one-person business and unable to cope with the workload this year. It wouldn't be the first time a rapidly growing e-business has spent all their efforts on growing the customer base and not focussed on servicing their existing clients.

enoughwealth@yahoo.com said...

Actually, a quick check of the ATO website seems to indicate that my SMSF tax return isn't due until 15 May 2009 (or maybe 5 June) as it's being lodged by eSuperFund (a tax agent):

"31 March 2009 - Income tax return for companies and superannuation funds with total income in excess of $2 million in latest year lodged (excluding large/medium business taxpayers).

15 May 2009 - Income tax return for all other entities not required earlier (including all other consolidated groups), and not eligible for the 5 June concession. "

Reference

Anonymous said...

I'm with esuperfund too and just asked them cos I was expecting to have to pay the tax soon.

The ATO website says:

For 28 Feb 09 "Income tax return for new registrant (taxable and non-taxable) self-managed super funds (SMSFs) (SMSF annual return). Payment (if required) is also due on this date.

and

15 May 2009 "Income tax return or SMSF annual return Due date for all super funds and tax agents clients not allocated to other categories (refer to 31 Oct, 15 Jan, 28 Feb, 31 Mar).
Fund income tax return not required earlier and not eligible for the 5 June lodgment concession date.
Payment (if required) is also due on this date."

It was the same last year: I was "new registrant" so 28 Feb. This year I am not new so esuperfund have told me its 15 May.

See http://www.ato.gov.au/super/content.asp?doc=/Content/77144.htm&page=11&H11

Anonymous said...

I was with eSuperfund for four years. Then I accidently bought CFDs using a "non-approved" provider (They insist you use Comsec because they get nice fat commissions from them).
eSuperfund sent me a letter saying they were refusing to have anything to do with my return anymore and will refuse to discuss it henceforth.
My new accountant has tried to contact eSuperfund by phone, letter, email and they have not even had the courtesy of a reply. We need to get the last ledger and asset readouts, which it is normal for accountants to pass on when clients change, bur eSuperfund are now showing their true credentials as uncooperative unprofessional operators.

enoughwealth@yahoo.com said...

I'm still not sure how good eSuperfund is at doing our SMSF tax returns - I don't know enough about the relevant tax rules to check that they came up with the correct figures. I just have to hope for the best I suppose.

I'm not sure why you'd need to chase them up for 'last ledger and asset readouts'? You have to provide the info eSuperfund uses to complete the SMSF tax return (such as the nature of contribution amounts), or have access to the same info they have (eg. Comsec share trades, bank account trans etc), so you should have all the opening info you need for the FY SMSF tax return that your new accountant needs to complete.