www.esuperfund.com.au

Questions & Answers - Fees


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+ What is the Fee to Setup a New SMSF?

It is FREE to set up your own SMSF with ESUPERFUND under our current Special Free Offer. Our Free New SMSF Setup Offer includes attending to the following requirements to establish your SMSF:

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    The SMSF Trust Deed
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    Documentation to appoint Trustees
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    Trustee Declarations
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    Lodgement of an Election for your SMSF to become a Regulated SMSF
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    ATO Application to obtain a Tax File Number for your SMSF
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    ATO Application to obtain an Australian Business Number for your SMSF
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    Sample Investment Strategy that you can adopt for your SMSF or modify if required
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    Resolutions and minutes to acknowledge the establishment of your SMSF
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    Application to establish a Bank Account with CBA.
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    Application to establish a Broker Account with either EBROKING or CommSec.
+ What is the Fee to Transition an Existing SMSF?

If you already have an Existing SMSF, please note that unfortunately, we are unable to transition the Existing SMSF to ESUPERFUND.

+ How much is the ESUPERFUND Annual Fee?

The ESUPERFUND annual fee is FREE for the first Financial Year and then per annum. ESUPERFUND attends to the taxation and accounting obligations for your SMSF for an annual fixed fee of per annum (GST inclusive), irrespective of the number of transactions made by your SMSF, the size of your SMSF or the number of Members. The ESUPERFUND annual fee includes attending to the following annual compliance obligations for your SMSF:

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    Preparation of an annual Balance Sheet
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    Preparation of an annual Profit & Loss Statement
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    Preparation of annual Member Statements
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    Preparation of annual Trustee Resolutions & Minutes
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    Preparation of an annual Income Tax Return
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    Preparation of an annual Audit
+ Does the ESUPERFUND Annual Fee cover annual compliance obligations for your SMSF?

Yes. ESUPERFUND attends to the above annual compliance requirements for your SMSF for our low fee of per annum. You do not need to arrange for another Accountant to prepare the above annual documentation as it is all completed by ESUPERFUND. Similarly you can be assured our low annual fee of per annum will cover all your SMSF annual obligations. Please note that the ATO charges an annual levy of for each SMSF. This annual ATO Levy applies to all SMSF's 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 is payable in addition to the ESUPERFUND annual fee of per annum.

+ How does the ESUPERFUND Annual Fee compare to the Market?

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 annual fee is fixed at 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 visit our Article Tonic for the Sceptics now.

+ Does the fee increase the more transactions the SMSF makes?

No. The ESUPERFUND annual fee is fixed at per annum whether your SMSF has 10 or 1,000 transactions per annum.

+ Does the fee increase if I have more than one Member?

No. The ESUPERFUND annual fee is fixed at per annum whether you have 1,2,3 or 4 Members (noting that 4 Members is the maximum in a SMSF).

+ Does the fee increase the larger my Super Benefit?

No. The ESUPERFUND annual fee is fixed at per annum whether you have $1 or $10 million in your SMSF.

+ Is the ESUPERFUND Fee an Introductory Fee?

No. The ESUPERFUND annual fee is not an introductory fee. Our aim is to ensure our fees are the most competitive in the market on a continual basis. Whereas other SMSF providers offer generous first year promotional offers you can be assured our low annual fee will remain low - always.

+ When is the ESUPERFUND Annual Fee payable?

For New SMSF Setups the annual fee is payable on 15 January each year after the expiration of our Special FREE offer period.

+ Who pays the ESUPERFUND Annual Fee?

Importantly your SMSF will pay the annual fee of from the Transaction Bank Account established for your SMSF. An authority to make the payment annually is included with the Establishment Package sent to you for signing when you apply to establish an SMSF with ESUPERFUND. The payment will occur automatically each year from your SMSF's Transaction Bank Account.

+ What is the Fee to setup a Pension with ESUPERFUND?

Free. Once you turn Preservation Age you are permitted to commence a Pension Income Stream from your SMSF. Importantly when you start a Pension in your SMSF you will never pay tax on realised capital gains (such as profit on share sales) and earnings in the SMSF (such as interest and dividends) again. For example assume you have a balance of $500,000 in the SMSF earning 7% in realised capital gains and income (ie $35,000). In this example you will pay $0 tax when you start a Pension. This compares to up to 15% if you do not start a Pension saving you over $5,000 in tax each and every year! It's the only legal way to eliminate tax left! Even better ESUPERFUND will setup a Pension absolutely FREE!.

+ What is the Fee to annually administer a Pension with ESUPERFUND?

FREE! When you commence a Pension in your SMSF there are a range of additional compliance requirements necessary each year. These additional compliance requirements are all attended to by ESUPERFUND ensuring your SMSF continues to receive tax free Income and Capital Gains. Importantly the additional compliance requirements are absolutely FREE! This is unprecedented in today's market.

+ What is the Fee to merge the Pension and Accumulation Accounts?

FREE! Every SMSF Member has a Pension and Accumulation Account. The total of these Accounts make up the Member's Total Super Benefit in the SMSF. At 30 June each financial year ESUPERFUND will review your Member Balance including both the Accumulation and Pension Accounts. Where you have either Multiple Pension Accounts established or a balance in both your Accumulation and Pension Accounts, ESUPERFUND will automatically merge these accounts to ensure your Super Benefit retains its tax free status. This service is absolutely FREE! This is unprecedented in today's market.

+ What is the Fee for a Death Benefit Agreement with ESUPERFUND?

FREE! To ensure your Super Benefit is distributed in accordance with your wishes on death all SMSF Members should, execute a Death Benefit Agreement for their SMSF. ESUPERFUND allows you to do this conveniently on our website for FREE!

+ What is the Fee to Change Trustees or Members?

FREE! You are permitted to add or remove Member and Trustees. You can lodge a change trustee or member application through your Client Portal. On receipt of your online application, documentation is forwarded to you for signing to implement the changes requested. This service is provided to you absolutely free.

+ Are there any Exit Fees?

No. ESUPERFUND do not charge exit fees and you are free to move to another Superfund or Accountant at any time. It is important however to understand that you can terminate the services of ESUPERFUND at any time and for any reason by notifying ESUPERFUND in writing.

+ What is the Fee if my SMSF borrows to buy Property?

Clients of ESUPERFUND are permitted to borrow invest in Australian Residential and Commercial Property. It is important to understand that when you borrow to buy property you must purchase the Property using a Bare Trust or Security Custodian Structure. Importantly ESUPERFUND attends to the entire setup process and loan establishment. This service is $500. This is unprecedented in the marketplace. In addition no additional fee is payable by clients who invest in Property with their SMSF, whether they borrow or not. Our annual fee remains at per annum. This is unprecedented in the marketplace. Please note that fees will be charged by the Lender providing finance for the Borrowing. Find out more about the Interest Rates and Fees.

+ What is the ATO Levy payable to the ATO each year?

The ATO charges an annual levy of for each SMSF. This annual ATO Levy applies to all SMSF's 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 is payable in addition to our annual fee of per annum.

+ Does ESUPERFUND provide general taxation advice and what are the fees?

FREE. ESUPERFUND provides general taxation advice to clients via email and phone on all aspects of Self Managed Superannuation. ESUPERFUND does not charge for general taxation advice to clients.

+ Does ESUPERFUND charge any Contribution Fees?

No. ESUPERFUND does not charge any Contribution Fees.

+ Does ESUPERFUND charge any Entry Fees?

No. ESUPERFUND does not charge any Entry Fees.

+ How do we keep our fees so low? What's the catch?

There is no catch. 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. View our article Tonic for the Sceptics for more.

+ How do we respond to the common question, "If it's too good to be true, then it probably is?

"If it's too good to be true then it probably is". This is the statement that we hear the most at ESUPERFUND. We have been hearing it since 2006 and continue to hear it on an almost daily basis. For those clients who have thought about using our services but have had doubts we have tried to detail how indeed we can actually offer the services we do at the low price we do. You can read our article "Low SMSF administration costs are not too good to be true" to find out the detailed reasons. Accordingly there is really no reason to pay high fees to manage your SMSF. ESUPERFUND has proven that our model works since it began trading in 2006. So maybe clients should no longer be asking if our service is "too good to be true", but embracing that maybe ESUPERFUND is simply using technology in a way that makes our company ahead of its time.

+ Are there any additional fees I need to consider prior to making a decision to setup a SMSF?

When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including:

ATO Supervisory Levy

The ATO charges an annual levy of for each SMSF. This annual ATO Levy applies to all SMSF's 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.

Company Trustee Setup Fee (where applicable)

When setting up a SMSF you can appoint either Individuals as SMSF Trustees or a Company as Trustee. Each option is discussed here. For your convenience, if you do not have an existing Company and would like to establish a Company to act as Trustee for your SMSF, ESUPERFUND offers a Company Setup Service as part of its online SMSF application here. The cost of establishing a Company with ESUPERFUND is . In addition where the sole purpose of the company is to act as Trustee for a SMSF (for a "special purpose") the annual ASIC review fee is reduced to per annum compared to per annum for a company that is not a "special purpose" company. These fees can be avoided by using Individual Trustees for your SMSF . There is no additional annual fee payable to ESUPERFUND to manage the Company. Please note that you are not obligated to use the ESUPERFUND Company Setup Service and can arrange to setup a Company with any provider desired. The Company details can in turn be entered into our online application when applying for an SMSF here.

Investment Fees

When you setup a SMSF you can invest in a range of different Investments as detailed here. It is important to understand that fees may be incurred when investing your Super Benefit including but not limited to brokerage fees when investing in shares and property purchase costs such as stamp duty and borrowing costs when investing property. Information about Investment Fees can be typically found by reading the product disclosure statements and terms and conditions of the relevant Investment (where applicable) or by contacting the Product Provider directly.