Unfortunately ESUPERFUND does not accept Existing SMSFs given the additional complexity and time required to transition these SMSFs to our service.  That is in order to accept Existing SMSFs it is necessary to review all existing documentation and minutes to ensure the SMSF is complying.  This includes reviewing the Existing Trust Deed, Pension Documentation, Trustee Declarations and so on.  More importantly the clients historical asset history including CGT history must be taken up which can be very complex and time consuming given many existing SMSFs have been in existence for many years.  This level of additional complexity is outside our low cost model offering.

Establish a New SMSF

Clients with an Existing SMSF who wish ESUPERFUND to act for them can establish a New SMSF and in turn close their Existing SMSF.  This will include transferring all the assets from the Existing SMSF to the New SMSF established.  However there are important considerations to bear in mind prior to following this strategy detailed below.

Stamp Duty

Transferring assets from an Existing SMSF to a New SMSF may trigger a Stamp Duty Liability.  Stamp Duty will not apply to cash and share transfers.  However Stamp Duty may apply to Property transfers.  Accordingly if you have property in your Existing SMSF it may not be appropriate to transfer assets from an Existing SMSF to a New SMSF.  We suggest that you contact the State Revenue Office prior to pursuing this Strategy.

Capital Gains Tax

If you have unrealised capital gains in your Existing SMSF then transferring assets from an Existing SMSF to a New SMSF will result in a Capital Gains Tax Liability.  There is no Rollover Relief available when transferring assets between SMSFs.  If your SMSF is totally in Pension Phase this may not be an issue if the transfer triggers a Capital Gain as the capital gain will be tax free.  If however some SMSF Members are in Accumulation Phase we suggest that you seek advice prior to pursuing this Strategy.

Capital Losses

If you have unrealised capital losses in your Existing SMSF then transferring assets from an Existing SMSF to a New SMSF will result in a Capital Loss.  Capital Losses cannot be transferred from the Existing SMSF to the New SMSF so this issue must be carefully considered prior to pursuing this Strategy.

Off Market Transfers

You do not need to sell the assets your Existing SMSF has if you establish a New SMSF.  They can be transferred "in specie".  This means that they can be transferred without selling the assets.  In the case of Shares fees may apply to transfer the Shares between SMSFs.  Details can be found here.

Rollover Documentation

When you transfer your Super Benefit from the Existing SMSF to the New SMSF you will need to prepare a Rollover Document and provide this to ESUPERFUND as part of the annual compliance process.  ESUPERFUND cannot assist in the Rollover Process and you will need to have your Existing Accountant prepare the Rollover Documentation. 

When to transfer

If you decide to setup a new SMSF then it is preferable that the new SMSF is setup as soon as possible.  This is because if you leave the new SMSF Setup too close to the end of the financial year then by the time all assets are rolled over from the Existing SMSF, you may cross over into a new financial year.  This will mean an additional tax return will need to be prepared for the Existing SMSF, an unnecessary cost.  It is preferable to have all the assets rolled out of the Existing SMSF before the end of the current Financial Year so that Existing SMSF can be closed.

Term Deposits

If you have invested in Term Deposits you must be careful that transferring the Term Deposit will not result in "break fees" being incurred.  We recommend that you contact your Bank to discuss the ability to transfer the Term Deposit to a New SMSF name without incurring fees.  If fees are to be incurred it may be prudent to wait until the Term Deposits mature before they are transferred to a New SMSF.

Closing the Existing SMSF

ESUPERFUND cannot assist in the closure of your Existing SMSF or the preparation of the final years compliance requirements for the Existing SMSF.  You will need to have your Existing Accountant attend to the Existing SMSFs final year's compliance documentation.