2021 Annual Compliance Procedure

What are your SMSF Annual Compliance Requirements?

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

2021 Annual Compliance process:

Step 1: Annual Checklist released in your client portal

In order for us to attend to the above reporting requirements for the 2021 Financial Year for your SMSF, you will be required to complete the 2021 Annual Checklist. The checklist details information we hold for your SMSF and requests additional information we require from you.

Step 2: Complete the Data Collection

The "Data Collection" Tab asks you a series of questions about the Investments made by your SMSF during the Financial Year. Based on your answers the system will determine what additional data is required by ESUPERFUND.

If the SMSF Bank and Broker accounts were established by us, ESUPERFUND receives electronic data and no information is required from you.

If your SMSF holds other Bank and Broker accounts, additional data is required from you. The system will prompt you to provide the data and once provided the data will need to be reviewed by ESUPERFUND (see Step 3 below).

Step 3: ESUPERFUND reviews the Data Collection

If your SMSF holds other Bank and Broker accounts, the data provided by you via the Data Collection will need to be reviewed by our office before you can proceed to the next part of the checklist.

If you have authorised ESUPERFUND to receive Trading Data on some brokers (e.g. CommSec Options), we can only complete the Data Review Process after the broker finalises your linkage authority request and sends us the electronic data for the newly linked broker.

Once the account has been linked to ESUPERFUND or where there is no linkage authority request, it will take around 5 to 7 business days to complete the Data Review Process. The actual time may vary depending on the number of transactions and trades we need to verify.

As soon as we have completed the Data Review Process, we will contact you via the Client Portal Inbox.

Step 4: Complete Part 2 - Remaining Checklist

Part 2 of the Checklist will request you to code items and provide supporting documents relating to the data from Part 1. Further documents required for audit purposes such as Contribution related documents, invoices and Annual Minutes are also collected in part 2 of the checklist.

Step 5: ESUPERFUND to complete the Annual Compliance Documentation

ESUPERFUND completes the Annual Compliance Documentation in the order in which the Online Checklist is submitted by clients. Accordingly, we encourage you to submit the Online Checklist at your earliest convenience to ensure the timely completion of the Annual Compliance Documentation.

Step 6: ESUPERFUND may request further information from you

Should we require further information to finalise the Annual Compliance Documentation, you will be contacted via the Client Portal Inbox and the information we require will be detailed on the "Action Required" tab of the checklist.

Step 7: ESUPERFUND finalises the Annual Compliance Documentation

After we have finalised the Annual Compliance Documentation for your SMSF, you will be notified via the Client Portal to review the Compliance Documentation. Once you are satisfied that the documentation is correct, you simply have to sign the lodgement declaration to enable us to proceed with the lodgement of the Income Tax Return with the ATO.

What's New in the 2021 Annual Checklist?

We continue to improve the Online Checklist to provide you with a better user experience and to ensure that the Annual Compliance requirements are completed as efficiently as possible.

Please find below some of the major new features that have been integrated into the 2021 Annual Checklist:

1.  Streamlined the Data Collection process for Cryptocurrency investments

We have streamlined the process of collecting Cryptocurrency Investment statements and data. All statements and data related to Cryptocurrency investments are collected on our new Cryptocurrency page in “Part 1: Data Collection”. All cryptocurrency transactions details, i.e. purchases/sales, swaps, transfers to/from wallets, fork, airdrops and staking, made via Cryptocurrency exchanges and wallets will be collected via the Cryptocurrency page.

2. Streamlined the Data Collection process for Peer to Peer lending investments

A new page for Peer to Peer lending investments has also been added to the Data Collection part of the 2021 Annual Checklist. You will be required to enter details of all cash transfers between the P2P account and other SMSF Bank accounts, and provide the total interest received, withholding tax amounts and any fees paid.

3. Improved electronic data import functions

For bank and broker accounts not established via our office, we cannot receive data automatically and therefore the statements and electronic data are required to be provided by you. The electronic data file needs to be converted to our required format before being imported. We have improved the import function and should the import fail, we have improved the error messages shown to specify the details of the error.

In addition to the above, for certain bank and broker accounts, you can now import the original data file downloaded from their online platform meaning you do not need to convert the file to our required format.

4. Enabled you to switch between digital signing and physical signing

In the 2020 Financial Year Checklist, we introduced the digital signing of documents allowing you to complete and sign documents in the checklist electronically.

In the 2021 Annual Checklist, we allow you to choose between digital and physical signing, depending on your preference. For clients preferring to print, complete and physically sign the documents, you may elect to do so via the 2021 annual checklist.

5. Improvements to the “Contributions/Withdrawals/Insurance” tabs

We have also made some improvements to the above mentioned member accounts pages. If the contribution, withdrawal or insurance premium payment transaction has been incorrectly coded, you can now directly return to the incorrectly coded transaction from the Contribution/Withdrawal/Insurance summary pages to update the transaction details.

6. Other Updates/Improvements

Improved quality of data and accuracy of auto-coded transactions

We continuously improve the quality of data we receive from third parties and endeavour to code as many transactions as possible on your behalf based on the data and information we hold.

Updates to the “Compliance” tab

Questions on the “Compliance” step have been rearranged and redefined to make it clearer on how to answer the question and if applicable will allow you to directly upload the correct documentation for audit purposes.

Frequently Asked Questions

Section One: Data Collection

+ Do I provide details of the Managed Funds investments in the Data Collection step?

If your SMSF has acquired or sold Unlisted Managed Funds (e.g. using providers such as Colonial, Perpetual, Vanguard etc) details will be requested later in the Coding section of the Checklist and no information is required from you in the Data Collection step.

If your SMSF has acquired or sold Listed managed funds using the mFunds Service with a broker, the Broker and trade details are required to be provided under the “Australian Shares” tab of the Data Collection step. If the Listed Managed Funds were traded via the EBROKING mFunds service, the trades are automatically listed on the “Australian Shares” tab and no further information is required from you.

+ ESUPERFUND asked me to provide further information regarding Data, what should I do?

We advise that the additional information we require from you regarding your SMSF's data is detailed on the "Action Required" page of the 2021 Online Checklist. To access the "Action Required" page, please click here to login to your Client Portal. Please open the 2021 Online Checklist by clicking "View Checklist" and then click the "Action Required" tab (the last tab under the "Data Collection" section).

Please provide the requested information via the "Action Required" page. You will not be able to proceed to the remaining parts of the Checklist until you have provided the additional information.

+ How can I improve the processing time of the Data Review Process?

Here are some tips to avoid delays:

  • Please provide the official statements issued by the Financial Institutions.
  • Please provide the official statements covering the transactions for the entire Financial Year (1 July 2020 ~ 30 June 2021). If the account was opened or closed during the financial year then the statements should cover the entire period the account was open during the year.
  • The statement should clearly show the owner of the account (i.e. the name of your SMSF).
  • If you are not sure what documentation is required, please refer to the sample document available on the relevant page of the Online Checklist.

Section Two: Coding and remaining checklist tabs

+ The SMSF participated in a Share Purchase Plan and received a scaleback refund, how should the initial payment and subsequent refund be coded?

Please code the amount paid as "Split into multiple codes" to break down the transactions as follows:

Amount Transaction Code
Actual cost of shares allotted $ Actual cost (debit) Investment Purchase (incl. Corporate Action)
Scaleback refund $ Scaleback refund (debit) Reversal of transaction

Please note that the deposit received in the SMSF’s bank account subsequently for the scaleback refund should also be coded as "Reversal of Transaction".

+ How should I code the withdrawal made under COVID-19 early release of super?

If you have withdrawn from your SMSF under the early release of superannuation due to COVID-19, please code the withdrawal amount as "Pensions & Withdrawals" and select "Lump Sum" as the withdrawal type.

When you proceed to the “Withdrawals” step of the Checklist, you will be required to upload a copy of the ATO approval letter for audit purposes if you do not meet a general condition of release yet (i.e. you have not reached your preservation age; you have reached your preservation age but are still aged under 65 and not retired).

+ How should I code the property related transactions?

Property Purchase: Please code the payments made for the purchase of the property (i.e. deposit and settlement payments) as "Investment Purchase (incl. Corporate Actions)" and select "Property" as the Investment Type. Please click on 'Add' to add the property type and property address details.

Property Expenses: For all expenses incurred in relation to the property, the amounts should be coded as "Property Expense (incl. GST)".

If the property was purchased in the 2021 Financial Year, please ensure you have coded the property purchase transactions first.

Rental Income: Please code the amount received as "Rent from Property or Other Assets (incl. GST)". Where the property was rented via a real estate agent, you will be required to provide the monthly rental income and expenditure statement detailing the gross rental income and expenses incurred.

+ I note that some minutes (e.g. Investment Annual Minutes) are required to be completed and signed electronically. How do I complete them?

Step 1: Please click the 'Sign/Edit File' button under the 'Upload' Column to open the document/minutes on your screen.

Step 2: Please enter the meeting venue, meeting date and Trustees who attended the meeting in the table provided at the top of the document.

Step 3: Please review all parts of the Minutes document and provide further information where required:

  • Select "Yes/No" to confirm whether you agree/disagree with the information prefilled into the minutes;
  • Provide detailed information relevant to your SMSF’s circumstances in the text boxes.

Step 4: To sign digitally, please identify yourself from the Trustee/Director dropdown list and then tick the checkbox. Where your SMSF has more than one Trustee/Director, you can use the “Save as draft” function to save the information if all the Trustees /Directors cannot sign at the same time.

Step 5: Once all fields have been completed, please click the ‘Submit’ button to submit the completed minutes. Please note that if some fields are still incomplete, you will not be able to submit the document.

Section Three: Others

+ How do I make changes to the Online Checklist after submission?

We advise that you cannot amend the Checklist after its submission. If you would like to make changes, please simply provide the updated information to our office via the "Action Required" function of the 2021 Online Checklist.

We will take note of the updated information when preparing the Annual Compliance Documentation for your SMSF.

+ What is the "Action Required" function?

We advise that the "Action Required" function enables you to upload additional information to your 2021 Online Checklist after its submission.

To use the "Action Required" function, please click here to login to your Client Portal. Please open the 2021 Online Checklist by clicking "View Checklist" and then click the "Action Required" tab.

+ I wish to provide a depreciation schedule for the property held by the SMSF. Where should I upload the document?

In order to claim depreciation for the property held by the SMSF, a depreciation schedule prepared by a qualified quantity surveyor is required to be provided. Please provide a copy of the Depreciation Schedule via the "Action Required" step after you have completed and submitted the checklist.

+ How can I improve the processing time of my Annual Compliance Documentation?

To ensure that your Fund's Annual Compliance Documentation is processed as quickly as possible, please check your Fund's Client Portal Inbox regularly. If we request further information on the "Action Required" tab of the Online Checklist, please provide the required information to our office as soon as it becomes available.

To ensure that you remain contactable at all times, please update your contact details through your client portal here every time you change your contact details.

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