These questions will assist you if you are asked to complete a SMSF audit.
1. What is your relationship with the other trustees?
Let the auditor know how long you have known the other trustees, are they related, etc.

2. What made you decide to set up a self managed super fund?
What ever your reasons were. Most of the time it relates to…
Cost. Costs are fixed and shared among members.
Control. I can control the assets.
Choice. I can choose what to invest in.

3. Did you receive advice from anyone in relation to setting up a super fund?
No or yes if you did receive any financial product advice from a licensed financial adviser.
(Remember, New Brighton Capital is not a financial adviser, does not and did not offer financial advice, other than for the sole purpose of ensuring compliance with the superannuation legislation in respect of the setting up of your SMSF as per Corporations Regulation 7.1.29(5))

4. Who set up the fund?
Online through newbrightoncapital.com, self serve platform.

5. What is the sole purpose of the fund?
The SMSF is to be run for the benefit of the members in their retirement.
(The auditor wants to know that you know that you cannot use the money in your super for personal use, like going on a holiday or catching up on day to day expenses.)

6. Did anyone offer you further advice?
No or yes if you did receive further advise.
(Again, New Brighton Capital is not a financial advisor and does not offer financial advice)

7. How much were you charged to set up the SMSF?
$1600 to establish a Corporate Trustee SMSF. Fee Includes SMSF establishment and lodgement of TFN and ABN application.
You can send through a copy of the invoice.

8. Have you signed any further documents?
You are required to sign…
– the trust deed
– minutes of the first meeting (if you are the nominated chairperson)
– trustee declaration form  (download here)
– nomination of beneficiaries upon death,
– tax file number notification
– company formation docs if you set up as a corporate trustee
(all these forms are in the “Establishment Documents” section of your SMSF portal)

9. Bank account status and what is the name of the bank account that has been opened?
If you have set up your SMSF bank account, the name should be “The trustees names” as trustees for the “Your Super Fund”.
The account should be a business account and all trustees should be signatories.
If the banks say they cannot open an SMSF account for you until your fund is approved by the ATO, show them the second last paragraph on this page: https://superfundlookup.gov.au/FAQ/SelfManagedSuperFund which states “For newly established funds, the ‘Regulation details withheld’ status may be a temporary status and should not prevent the SMSF trustee from opening a bank account.”

If the bank manager will still not open an account for you, message us through your NBC portal and we will provide further instructions.

10. What do you understand a trust deed to be and what is its importance to the fund?
The deed …
– outlines the rules of the fund
– its importance is that it separates the entity from the members and the trustees.
– the fund is to be run to the benefit of the members in retirement.

11. Does it set out anything particular in the trust deed?
The trust deed outlines…
– what the fund can invest in.
– how it operates,
– the primary purpose of the fund
– how the funds will be invested
– how the members benefit,
– who may be trustees,
– how to appoint trustees,
– meetings, procedures, powers of the trustee,
– how trustees are not to receive a reward etc.

12. How much will you be rolling into the fund?
“Rolling” means moving. Just let the auditor know how much or what percentage of super you are moving into your SMSF.

13. Is there something in particular you want to use the money for?
The money will be only be used to invest in a way that is aimed to benefit the members in retirement.
(Again, the auditor wants to know that you know that you cannot use the money in your super for personal use, like going on a holiday or catching up on day to day expenses.)

14. Will you need the funds after the money is used?
No. We do not need the money at all. All the money is to be invested to benefit the members in retirement.
(Yep. They will ask again. And you know what they want to hear…)

15. Did anyone advise you about the investment in technology / bitcoin / robotics?
No, or yes if you did.
If you did not receive advice, you need to communicate that you have a good idea of what you are doing and are capable of managing your own funds to invest for your retirement. (Again, New Brighton Capital is not a financial advisor and does not offer financial advice)

16. Who are the members of the fund?
Name the members.
(the members are the people whose money is being invested for retirement)

17. Who are the trustees of the fund?
The trustee is the company that has been set up and the members are the directors of the trustee company:
The trustees are the ones who manage the investments held in the SMSF. In your case a company is set up to manage the investments so the trustee is the company. You (the members) are the directors/decision makers of the company.

18. Will you be using the services of a tax agent for the fund?
Yes. You MUST use an accredited SMSF accountant to complete your yearly obligations. New Brighton Capital is an accredited tax agent and has a list of accredited tax agents.

You need to be aware that you need to…
– run the fund in compliance with the trust deed and the superannuation rules;
– complete tax return each year;
– complete SMSF audit each year.

19. What are your duties and responsibilities as a trustee of a SMSF?
1. To run the fund to the benefit of the members in retirement;
2. To run the fund in compliance with the super laws and rules outlined in the trust deed;
3. Only invest in what you are allowed to.

Investments in an SMSF must be made and kept on an arm’s length basis. Investments must be maintained on a strict commercial basis and always reflect true market value. This means you can’t for example buy an investment property and let your kids live in it for 1/2 the market rent.

4. Ensure proper tax returns, compliance and audit are lodged each year.
5. Trustees must be up to date with their ATO obligations.

20. What are the costs involved with running a SMSF?
1. SMSF supervisory levy is paid at tax time and is $526 first year, $263 every year after.
2. Cost for preparation and lodgement of tax return, audit, financial statements and compliance.
(New Brighton Capital performs these activities for $150 per month / $1800 per financial year)
3. Annual ASIC fees to keep the corporate trustee company registered, $56 a year.
4. ESA registration, $55 a year. (The ESA or electronic services address, is a system that notifies you and the ATO when your employer makes a contribution into your SMSF)

Note: trustees are not allowed to receive any wage or payment.

21. How much do you expect to pay each year to run the fund?
The average cost to run a SMSF can range anywhere between 2-4k

– New Brighton Capital can perform all required lodgements for $150 per month ($1800 per year). This includes the tax return, audit, ongoing compliance and financial statements.
– The SMSF government supervisory levy is added onto your tax return bill paid to the ATO each year.
– New Brighton Capital will pay for your ASIC and ESA registration on your behalf and invoice you on the anniversary of the SMSF’s establishment.

22. What insurances are being paid by the fund?
You do not have to have the SMSF pay for insurances. The following insurances can be purchased from your SMSF and the premiums are tax deductible for the fund.

Life insurance
Total and permanent disability insurance (TPD)
Income protection insurance

23. Where will the money come from to pay to run the fund?
You need to make sure you have the money to pay to run the fund. This can come from cash held, voluntary contributions or liquidating positions within the fund.

24. When is a fund member allowed to access their super?
You can only access your superannuation if you …
1. have reached preservation age. Preservation age based on you date of birth.
Your preservation age can be seen here: https://www.ato.gov.au/Individuals/Super/Accessing-your-super/ ;
2. are terminally ill or;
3. are experiencing Financial hardship.

25. What are some of the consequences of not complying with the rules related to running a SMSF?
You can go to jail for up to 5 years.
For breaches of super rules you can be fines up to $12,500 for each trustee.

26. Any instruments varying your trust deed?
No, unless you know yiou have made changes to the original trust deed.
If you have not changed anything in the trust deed then it has not been “varied”.

27. Is the SMSF acquiring any assets outside shares.
Yes or No. As long as the assets you are looking to purchase are permitted according to the super rules and your trust deed, then you are fine.