Regulation has a special place in the heart of this blog and superannuation is a particular fave. I’ve offered some connoisseurship of Self Managed Super Fund regulation in the past. I could say that this takes the cake, but really it’s just pretty par for the course. It’s certainl reassuring that the current gov, like the government before it and the one before that and so on back to 1986 are looking for opportunities to reduce red tape. Then again wasn’t the government that set this up looking for such opportunities. Well maybe not, but they told us they were, and they probably thought they were. I wrote to my accountant after waiting until my son duly turned 18 (obviously until he turns 18 he can trust the finance industry far more than he can trust his father to invest money for his retirement). This is what’s required to bring him into the family super fund.
We refer to your recent request for further advice regarding the cost and requirements involved so that the employer contributions pertaining to your son can be contributed to Peach Superannuation Fund.
Currently, Eva and yourself are the trustees of Peach Superannuation Fund. For your son to be able to contribute to the fund, we would recommend the following:
1. Change the trustee of the super fund from individual trustees (being yourself and Eva) to a corporate trustee, subject to the super fund deed. This is done through resignation of the individuals as trustees of the fund and appointment of a company as trustee instead. Your son can then be added as a member of the fund. A variation of the existing superfund deed would be required, which cost $750;
2. For the above to occur, a new company would have to be set up, with Eva, your son and yourself as directors. The set up cost for the company will be approximately $1,150. Our current fee to handle the Annual Company Statement, which is an ASIC requirement, is $319. The ASIC Annual Review fee charged by ASIC is currently $46;
3. There will also be a requirement to update all bank account details and investment holdings to reflect the new trustee structure of the fund.
In a nutshell, the initial set up cost for the above structure would be $1,900 and ongoing annual fees relating to the trustee company of around $365. The above approach is more beneficial in the long term and provides better protection for estate planning purposes.
Before you make your final decision, we would recommend that you incorporate the above approach with your estate planning and advise your solicitor accordingly.
ernment