Pension Commencement Fee: FREE
It is FREE to setup a Simple Account Based Pension or Transition to Retirement Pension (TRAP) with ESUPERFUND.
Commencing Multiple Pensions Fee: FREE
If you make a significant Rollovers or Contributions to your SMSF after commencing a Pension this will sit outside the Pension in the "Accumulation Account". This will mean that earnings on this part of your Super Benefit will continue to be subject to Tax. In this case it may be appropriate to commence a second Pension with your "Accumulation Account" balance to continue to ensure your Super Benefit earnings continue to be completely tax free. We do caution however that additional Pensions should only be commenced when there is a significant benefit in the Members "Accumulation Account" (eg $50,000 or more). Where you are making smaller contributions (eg from your monthly employer super contributions) you should not commence a separate Pension with each of these amounts as this becomes administratively burdensome. You should note that ESUPERFUND still provides you with a solution for these contributions, to ensure even these smaller amounts are consolidated into your Pension via our annual "merging" strategy detailed next It is FREE to establish Multiple Pensions with ESUPERFUND. This is unprecedented in today's market!
Merging the Accumulation and Pension Accounts Fee: FREE
As part of the annual compliance preparation process ESUPERFUND will review each Members "Accumulation" and "Pension" Account balance. Where the Member has a balance in their "Accumulation Account" ESUPERFUND will automatically merge the balance in the "Accumulation" Account with the Members "Pension" Account. Merging the "Accumulation" and "Pension" Accounts means that the Pension commenced must be "commuted" (ie stopped), and both the "Accumulation" and "Pension" Accounts merged. A new Pension with the Members total Super Benefit is then commenced. This process is administratively burdensome so it is usually recommended that this "merging process" occurs only once per annum on 1 July. The great news is that 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.
We caution that from 01 July 2017 significant changes will apply to the tax treatment for Simple Account Based Pensions and TRAPs.
Therefore, the merge process will be updated accordingly from 01 July 2017.
Please click here for the detail changes to Simple Account Based Pensions (SABP) and here for the changes to Transition to Retirement Pensions (TRAP).
Recalculation of Minimum and Maximum Annual Pension Payment Fee: FREE
It is important to understand that the Minimum and Maximum Pension is recalculated annually on 1 July each year based on each Members balance at that date. Importantly at the end of each Financial Year, once the year end Financial Statements have been prepared for your SMSF, ESUPERFUND will automatically recalculate the Minimum and Maximum Pension for you and notify you of the amounts. In addition ESUPERFUND will send you a reminder the following May (one month before the end of the Financial Year) reminding you of the Minimum and Maximum Pension to be taken to ensure you access the correct amount. This service is absolutely FREE! This is unprecedented in today's market.
Annual Payment Summary Fee: FREE
Pension Income accessed by a Member after age 60 is tax free to the Member. This is one of the main attractions of commencing a pension after age 60. Given that the Pension Income is tax free, the income accessed by the member does not need to be declared in that Members annual tax return. Similar or equal taxation benefits can apply if a Member commences a pension between Preservation Age and 59. However in this case the Pension accessed must be declared in that Members annual tax return. Importantly ESUPERFUND prepares an "Annual Payment Summary" for each Member who has received a Pension between Preservation Age and 59. The "Annual Payment Summary" details all the information required to include in the Members annual tax return including the "taxable" part of the Pension and any associated Pension Rebate. This service is absolutely FREE! This is unprecedented in today's market.
Annual Pension Compliance Fee: FREE
When you commence a Pension there are additional compliance requirements for your SMSF. These include converting the Member's "Accumulation Account" to a "Pension Account" and tracking the movement in each of these "Accounting Accounts". In addition the earnings of the SMSF must also be prorated between each Member and in turn each Member "Pension" and "Accumulation" Account to determine what portion of the SMSF earnings are taxable and what portion are tax free. Importantly ESUPERFUND attends to these compliance requirements for you absolutely FREE! That is our annual fee does not change even if you commence a Pension. This is unprecedented in today's market. Please note that in some cases, an actuary certificate is required and the cost of an actuary certificate is not included in our annual fee. Click here for more details.