02-Feb-2011
When clients are setting up an SMSF or transferring money from another fund into an SMSF, they should be aware of the process and information that needs to be provided.
The Australian Tax Office (ATO) has developed a new SMSF member verification system to provide increased transparency for trustees and administrators. The aim is to ensure that money is only rolled over to a legitimate SMSF account by allowing trustees and their authorised administrators to confirm that an individual is a member of an SMSF.
To provide further clarity, the ATO will update information about SMSFs on the website www.superfundlookup.gov.au The website holds information about the complying and regulatory status of SMSFs and lists any concerns the ATO has about particular SMSFs.
The ATO will also provide additional assistance to super fund trustees or their administrators in some situations, for example, if an SMSF was a “non-complying” fund and a request to roll money to that fund was made.
The intention of the SMSF member verification system is to manage the risk of illegal access to super benefits by transferring or rolling over super money to SMSFs. It may also avoid the need for super fund trustees to obtain a copy of an SMSF trust deed prior to the roll over.
Clients need to be aware that if they request a rollover to their SMSF the trustee processing the rollover will now need to complete the following checks:
This means that members of SMSFs who want to roll money into their SMSFs will need to provide proof of identity, ensure their fund is regulated, and ensure that they have been recorded as a member of the SMSF with the ATO. This may also increase the time it takes to process the rollover.
An increasing number of our clients have said they are not interested in being involved with the increasing complexity of administering the day to day compliance of their SMSF. If you too wish to concentrate on the investment strategy of your SMSF but not be bogged down with paperwork, then our SILVER SERVICE may be just the option for you.
Contact your Nexia Court adviser or click here to find out more information.
