Step 1:  Setup a SMSF with ESUPERFUND

A SMSF is your own personal Superannuation Fund that gives you total control over how your Super Benefit is invested.  An SMSF is perfect for the DIY Investor who prefers to make their own Investment Choices for their retirement rather than leave their Superannuation to be invested by others.  There in no minimum amount required to setup a SMSF.  If you are ready to establish a new SMSF, ESUPERFUND can attend to the all aspects of the setup process for you.  More importantly under our current promotional offer it is absolutely FREE to establish a SMSF with ESUPERFUND.  The process to setup your own SMSF is detailed here.

Step 2:  Compulsory ANZ V2 Plus Transaction Bank Account is established for your SMSF

When you become a client of ESUPERFUND, an ANZ V2 Plus Account is established for your SMSF which will act as the Transaction Account for your SMSF.  The ANZ V2 Plus Account must be used for your SMSF.    At the end of each financial year, ANZ will send to ESUPERFUND an annual data file of all your SMSF transactions.  This enables our office to attend to your SMSF's annual compliance obligations.  No bank records are required from you each year as we already have access to the data.  It is important to understand that only electronic data files are provided to ESUPERFUND.  We have absolutely no access to your ANZ V2 Plus Account and cannot actually login to your Bank Account to access the required data.  For more on the ANZ V2 Plus Bank Account click here.

Step 3:  Compulsory Share Trading Account is established for your SMSF

When you become a client of ESUPERFUND a Share Trading Account will be established for your Fund enabling you to trade Australian Shares online.  ESUPERFUND clients can choose to trade Shares through either the CommSec or EBROKING Trading Platforms.  You will be given a choice of which Trading Platform you prefer as part of the SMSF Application Process.  At the end of each financial year, the Broker will send to ESUPERFUND an annual data file of all your SMSF trades.  This enables our office to attend to your SMSF's annual compliance obligations.  No trading records are required from you each year as we already have access to the data.  It is important to understand that only electronic data files are provided to ESUPERFUND.  We have absolutely no access to your Broker Account and cannot actually login to your Broker Account to access the required data.  For more on the Trading Account click here.

Step 4:  Rollover your Existing Super Benefit to your SMSF Bank Account

Once your SMSF has been established you can apply to your current Superfund to transfer your existing Super Benefit to your new SMSF.  You cannot apply to Rollover your existing Super Benefit until ESUPERFUND has mailed to you the "Final Establishment Package" which will include all your SMSF setup details including the ABN.  The Rollover process is detailed here.

Step 5:  Commence making Contributions to your SMSF Bank Account

Once the SMSF has been established you can also commence making Contributions to the SMSF.  All Contributions must be deposited into the ANZ V2 Plus Account established for your SMSF.  There is only one ANZ V2 Plus Account established for your SMSF and all Members must deposit Contributions into the same ANZ V2 Plus Account.  It is unnecessary and administratively inefficient to have a separate ANZ V2 Plus Account for each Member.  Each Contribution and Contribution Type must be allocated to a specific Member as part of the annual compliance process.  This is a legal requirement.  Typically the Member making the Contribution and the Contribution Type will be detailed on the ANZ V2 Plus Bank Statement.  To the extent that the narration on the Bank Statement is insufficient, you will be asked to confirm on whose behalf the contributions have been made and the Contribution Type using an annual checklist we send to all SMSF clients each year in July.  You do not need to send us confirmation at the time each Contribution is made. This information is only required annually and we will guide you through the process and prompt you when information is required from you.  For more click here.

Step 6:  Invest your Super subject to the "Investments Allowed" under the ESUPERFUND Platform

The Trustees of a SMSF (ie you) control the SMSF and make all the Investment decisions for the SMSF.  All Investments made by your SMSF must be made directly from the ANZ V2 Plus Account.  This ensures that ESUPERFUND can track all investments made by your Fund and importantly ensure we can streamline the annual compliance process ensuring our annual fees are kept well under market.  Listed below are Investments allowed under the ESUPERFUND Platform. 

ASX Listed Securities
ASX Listed Warrants
ASX Listed Options
Australian Contracts for Difference (CFDs)
International ETF's listed on the ASX
International Contracts for Difference (CFDs)
Exchange Traded Options (ETOs)
Australian Managed Funds
International Managed Funds
Cash
Term Deposits
Bonds
Online Savings Accounts
Physical Metals
Residential Property Investment where there is no borrowing made by the SMSF
Residential Property Investment where there is a borrowing made by the SMSF
Commercial Property Investment where there is no borrowing made by the SMSF
Commercial Property Investment where there is a borrowing made by the SMSF

Further details about Allowable Investments and the Investment Process can be found here.

Step 7:  Do not invest in "Disallowed Investments"

To ensure that our services can be offered at a fee significantly below market and to reduce audit risk certain Investments are not permitted under the ESUPERFUND Platform.  Listed below are Investments disallowed under the ESUPERFUND Platform. 

Investments in Private Companies or Private Trusts
Investments in Overseas Property
Loans to any Person or Entity
WRAP Accounts
Investments in Collectables

Further details including the rationale for disallowing these Investments is detailed here.  ESUPERFUND will not be able to act for clients who invest in any asset that is not listed as an Allowable Investment, unless approved by ESUPERFUND.  Unfortunately if you are a client of ESUPERFUND and subsequently invest in any asset that is not listed as an Allowable Investment (unless approved by ESUPERFUND), then ESUPERFUND will immediately cease acting for your SMSF and you will need to find a new Accountant to act for your SMSF. 

Step 8:  Consider Commencing a Pension in your SMSF

When you reach age 55 you have the option of commencing a Pension Income Stream from your SMSF.  A Pension simply means that periodically (eg each month or other period you nominate) cash is transferred from your SMSF Bank Account to your personal Bank Account to fund your living expenses.  The Benefit in commencing a Pension in your SMSF is that after commencing a Pension you will never pay tax on the SMSF income (eg interest and dividends) and realised capital gains made by your SMSF again.  This is truly an amazing taxation concession and makes commencing a Pension in your SMSF the perfect investment vehicle to hold your assets.  For more on Pensions click here.

Step 9:  Data electronically accessed by ESUPERFUND

ESUPERFUND is able to electronically access the transactions and trades made by your SMSF in order to attend to the SMSF annual compliance requirements.  That is at the end of each financial year, ANZ and your Broker will send to ESUPERFUND an annual data file of all your SMSF transactions and trades.  This enables our office to attend to your SMSF's annual compliance obligations.  Minimal records are required from you each year as we already have access to your SMSF transaction data.  It is important to understand that only electronic data files are provided to ESUPERFUND.  We have absolutely no access to your ANZ or Broker Accounts and cannot actually login to these accounts to access the required data.   Only in limited instances will you be required to provide additional information to ESUPERFUND to attend to the SMSF annual compliance requirements.  This includes rollover documentation and contribution details.  To guide you on the information required, ESUPERFUND will send you an annual checklist each year to ascertain the investments your SMSF has invested in and what additional information we require.  Where applicable we will request certain information to be provided to finalise your SMSF annual compliance requirements.  The Annual Compliance Checklist is typically sent in July each year and must be returned by October each year.

Step 10:  ESUPERFUND attends to ALL Annual Compliance Obligations

Your SMSF must attend to certain annual reporting requirements each and every year. These include:

Preparation of an annual Balance Sheet
Preparation of an annual Profit & Loss Statement
Preparation of annual Member Statements
Preparation of annual Trustee Resolutions & Minutes
Preparation of an annual Income Tax Return
Preparation of an annual Audit
Lodgement of the annual Income Tax Return

The above annual compliance requirements are ALL the compliance requirements that a SMSF must attend to annually.  Importantly ESUPERFUND attends to ALL the above annual compliance requirements for your SMSF.  You do not need to arrange for another accountant to prepare the above annual documentation as it is all completed by ESUPERFUND.  For more on the Compliance Process click here. 

Step 11:  Annual Compliance Fee is payable in January each year

The annual compliance fee is FREE for the first year and then $699 per annum.  ESUPERFUND attends to ALL the taxation and accounting obligations for your SMSF for an annual fee of $699 per annum (GST inclusive), irrespective of the number of transactions made by your SMSF, the size of your SMSF or the number of Members.  You can be assured our low fee of $699 per annum will cover all your SMSF annual obligations and that no additional fees will be payable for "hidden" services.  Please note that the ATO charges an annual levy of $180 for each SMSF.  This annual ATO Levy applies to all SMSFs and not just SMSF's administered by ESUPERFUND.  Accordingly the annual ATO Levy cannot be avoided irrespective of which provider you choose to administer your SMSF.  The annual ATO Levy of $180 is payable in addition to our annual fee of $699 per annum. 

By using the ANZ V2 Plus Account and specified Broker Accounts as the preferred Bank and Broker Account for our clients, we are able to ensure that our services are provided at a fee significantly below the market.  This is because we are able to electronically access the transactions made by your SMSF in order to attend to the SMSF Annual Compliance Requirements.  A review of the marketplace indicates that other SMSF providers charge between $1,500 and $5,000 to administer your SMSF.  In most cases our competitors quote only their base fees that increase the more transactions or investments your SMSF has.  At ESUPERFUND our price is fixed at $699 per annum, irrespective of the number of transactions made by your SMSF, the size of your SMSF or the number of Members.  ESUPERFUND is a volume based business that has invested significant capital to streamline its systems and processes resulting in material efficiency savings which are passed on to clients. To further understand how we can keep our fees so low relative to other providers visit our Articles "Tonic for the Sceptics" and "If it's too good to be true.." now.  For more on Fees click here.

Completely Safe

Importantly when you setup a SMSF with ESUPERFUND your Super Benefit is completely safe.  All SMSF Investments including the Bank and and Broker Accounts are established in the name of your SMSF.  This is a very important point and gives you total peace of mind that your SMSF is the direct owner of the SMSF Investments.  ESUPERFUND do not have any access to your Bank or Broker Accounts either directly or indirectly.  So in the very unlikely event we cease to operate or trade or become insolvent, all your SMSF Investments are totally protected and secure because your SMSF is the direct owner of the assets.  It is important to understand that only you as the Trustee for the SMSF can access your SMSF accounts.