Most SMSFs are set up with corporate trustees, in huge revision by ATO

In a huge revision by the ATO, it turns out that most SMSFs are actually being established with corporate trustees, rather than individual trustees as was thought. Also more than half of all SMSFs have a corporate trustee.

According to recently released ATO statistics, 80.84% of SMSF registered in 2016/17 were with a corporate trustee. This is far higher than the ATO had previously been reporting. The ATO’s 2014/15 SMSF statistical overview had only 7.24% of SMSFs registered in 2015/16 as having a corporate trustee (2,433 funds). The revised figures now have this as 80.82% with corporate trustees (27,274 funds). The total number of SMSFs registered has not changed markedly. Read more...

Trend against corporate trustees for SMSFs continues

Recent ATO statistics show Australians are increasingly choosing individual trustees for SMSFs over corporate trustees.

Only 7.65% of SMSFs registered in the 2013/14 year were registered with a corporate trustee, compared to 92.35% for individual trustees. This is more than a 2% decline from 2012/13, when 9.66% of SMSFs were established with corporate trustees. The ATO notes that “analysis shows over time there has been a consistent shift away from corporate trustees.”

SMSF Corporate Trustee, SMSF Individual Trustee

ATO SMSF videos: individual v corporate trustee, declaration

The ATO has published two new videos aimed at SMSF trustees, this time covering the differences between individual and corporate trustees for SMSFs, and the SMSF trustee declaration.

SMSF – individual or corporate trustees

“Deciding on the type of SMSF trustee is important. This video will help explain the difference between individual trustees and corporate trustees?”

SMSFs can save $198 each year in ASIC annual review fees

ASIC annual review fee Superannuation Trustee CompanyOne of the reasons people with SMSFs may be choosing to have individual trustees over corporate trustees is the annual ASIC fees. Private companies have to pay ASIC an annual review fee of $ 243 for the 2014/15 financial year, excluding the potential late fees.

This fee applies to a normal proprietary company, however there is another option for SMSFs – a Superannuation Trustee Company. A Superannuation Trustee Company is a type of Special Purpose Company, which is eligible for a lower annual review fee. The fee for 2014/15 for a Special Purpose Company is $ 45. Read more...

An SMSF Corporate Trustee could save $30,600 in fines

SMSF corporate trustee could save $ 30,600 in ATO administrative penaltiesFrom 1 July 2014 the ATO has the power to issue administrative penalties on SMSF trustees where there has been a breach of the SIS Act. However the amount of these fines can be much greater for individual trustees than if the SMSF has a company acting as corporate trustee.

As pointed out by Assistant ATO Commissioner Matt Bambrick in a recent speech, the fine applies per trustee not per fund. So if the fund has four individual trustees there will be four fines, but if there is a corporate trustee there is only one fine. Read more...

SMSFs choosing individual trustees over corporate trustees

When people set up an SMSF they are increasingly choosing individual trustees over corporate trustees, despite the advantages of a corporate trustee structure.

The Super System Review, also called the Cooper Review, was concerned about the number of new SMSFs set up with individual trustees in the years leading up to the release of the report in 2010. The cooper review panel was “attracted to the potential benefits provided by the corporate trustee structure” and also noted that it is “widely accepted by professionals and the ATO that a corporate trustee is superior”. Read more...

ASIC fees increased 1 July for SMSFs & SMSF auditors

ASIC Fees for SMSF companies, corporate trustees & Superannuation Trustee Company, ASIC Fees for SMSF AuditorsASIC has increased a range of fees charged for documents lodged and other services, several of which affect SMSFs and superannuation professionals.

These fee increases took effect on 1 July 2014, due to the annual indexation of ASIC fees, which is based on the CPI from the previous March Quarter.

ASIC Fees for SMSF Corporate Trustees

The annual review fee for a Proprietary Company – often used as a trustee of an SMSF, or as trustee for a custodian trust under a LRBA structure, has increased from $236 to $243. The annual fee for a Special Purpose Company has increased from $44 to $45. A Special Purpose Company includes a company which is a Superannuation Trustee Company – a company which acts solely as the trustee of a super fund and so is eligible for a lower annual ASIC fee. According to ASIC, for a company to be a Superannuation Trustee Company it must fulfill the following criteria: Read more...