Welcome to ESUPERFUND’s August Newsletter.
Our 2016 Financial Year Online Checklist was released in July and since then we have received lots of valuable feedback.
In this issue, we have been able to highlight the top FAQs about the checklist. We hope that this will be of great assistance when completing the Online Checklist.
We have also provided a snapshot of collectables as another investment option and key information regarding the SMSF Residency Test.
Client Services Manager
Annual Checklist Q&A
ESUPERFUND provides detailed instructions on each page of the Checklist to guide you through the whole process.
To access the instructions, you simply need to click on the symbol located on each page of the Checklist.
The instruction provides guidance on the following aspects:
Technical guidance on how to use the various functions of the Online Checklist
Explanations of some common superannuation terminologies
You may like to refer to those instructions if you have any problem in relation to completing the Checklist.
Q: My SMSF was set up prior to 30 June 2016 but up until 30 June 2016 there are no assets or transactions in my Fund, do I still need to submit the Checklist?
Yes. You are still required to complete the Annual Checklist to confirm that your Fund had no activity for the 2016 Financial Year.
This enables for our office to lodge a Return Not Required Notification with the Australian Taxation Office.
Q: Can I still submit the Checklist if I do not have all the supporting documents yet (e.g. Annual Tax Statement for Trusts / Managed Funds)?
Yes. To submit the Checklist prior to obtaining all the documents, please select “Upload document later /email / mail / fax” under the “How will Document be provided” column on the Upload page.
Once the documentation is available, you can provide it via the “Additional Information Upload” function.
Alternatively, you can forward the supporting documents to our office via email, fax or mail.
Q: How long will it take to process my Annual Compliance Documentation after I have submitted the Annual Checklist?
The average completion time is 3 to 4 months from the day you submit the Online Checklist depending on your Fund’s circumstances.
However, if your Checklist is submitted in the peak season (September - October), the waiting period may exceed 4 months due to the high amount of Checklists received during that time.
To ensure that your Fund's Annual Compliance Documentation is processed as quickly as possible, please ensure that you check your Fund's registered email account regularly.
If we request further information, please provide the required information to our office as soon as it becomes available.
Q: How does the “Additional Information Upload” function work?
“Additional Information Upload” function enables you to upload additional information to your 2016 Online Checklist even after its submission.
If you wish to make any changes to the Annual Checklist you may also use this function to notify our office.
To use the “Additional Information Upload” function, please log into your Client Portal, access to the 2016 Online Checklist and then click the “Additional Info” tab.
Please then follow the instructions provided on that page to upload documentation.
You can visit our website for more information about the Annual Compliance Process.
Investing in collectables
Here are two circumstances where coins, banknotes and bullion coins can be considered as investments in collectables.
Coins and banknotes are collectables if their value exceeds their face value.
Bullion coins are collectables if their value exceeds their face value and they are traded at a price above the spot price of their metal content.
More information about collectables can be found on the ATO website.
SMSF Residency Test
To be a complying super fund and receive tax concessions, an SMSF needs to be an Australian super fund at all times during the financial year.
The fund must satisfy the Residency Test by meeting all of the following three residency conditions.
The fund was established in Australia, or at least one of its assets is located in Australia.
The central management and control of the fund is ordinarily in Australia.
The fund either has no active members or it has active members who are Australian residents and who hold at least 50% of the total market value of the fund's assets attributable to super interests,
or the sum of the amounts that would be payable to active members if they decided to leave the fund.
As part of the annual compliance process, trustees are required to review and assess the SMSF’s residency status and inform ESUPERFUND
whether the SMSF meets the Residency Test in Financial Year 2016 when completing the 2016 Financial Year Online Checklist.
For more information on Residency Test, please refer to the ATO website.