Superfund Wholesale always recommends that SMSFs utilise a special purpose trustee company.
Although the annual review fee for special purpose trustee companies is relatively low ($48 as of 1 July 2017), if a client doesn't pay on time, the late payment fees ASIC applies are quite onerous:
- Up to one month late - $76
- More than one month - $316
So how can you ensure your clients avoid these hefty fees, as well as simplifying the administration of their SMSF trustee company?
Advance pay the annual review fees for 10 years
So how does this work?
- Download the following form: Advance payment remittance advice
- Have your clients write a cheque* for $359 (if prior to 30 June 2018)
- Send the cheque and completed form to ASIC
- Update ASIC for any changes applicable when they occur over the next ten years (such as change of address)
*If your client doesn't have a cheque book for their SMSF and they use a Macquarie CMA, you can order a bank cheque using the Withdrawal Form attached below. A bank fee of $10 applies.
It's also possible to prepay the annual review fees for standard proprietary companies. The cost is $1911 which is a saving of $629 over 10 years (based on the current annual fee of $254).
NEW: Generate the ASIC payment form and Macquarie withdrawal form online: ASIC Fee Prepayment
Other things you need to know:
- At this stage payment to ASIC can only be made via cheque*
- Superfund Wholesale will track the prepayment in the SMSF accounts of your client
- Please send a copy of the completed form to Superfund Wholesale for our records
- Annual Company Statements will still be issued once a year - but $0 will be payable
- Any changes that happen over that 10 year period (such as changes of address) still need to be notified to ASIC within 28 days
- Once paid the amount is not refundable
- The 10 years doesn't include the previous year - so if your client already been issued a recent Annual Company Statement and has a $48 fee to pay, they must separately pay that amount in addition to the 10 year pre-payment.
- Your clients should still sign and retain on file a Solvency Declaration each year within 2 months of the company's annual review date (see below).
*It is possible for Superfund Wholesale to make the cheque payment to ASIC on behalf of your clients and debit their nominated SMSF bank account, however we are currently only offering this service in bulk for multiple companies / SMSFs at once. We cannot do ad-hoc or single client payments. For further information please contact firstname.lastname@example.org
You can find out more about the 10 year prepayment on the ASIC website here.
Please note that it is best practice for company directors to pass a positive solvency resolution confirming the company is able to pay its debts as and when they fall due within 2 months of the company annual review date.
You can download a company solvency resolution template here.
If you have any questions about the ASIC prepayment option for your clients SMSF trustee companies, please submit a request.