We always recommend that SMSFs utilise a special purpose trustee company.
Although the annual review fee for special purpose trustee companies is relatively low $55 from 1 July 2020 ($54 up to 30 June 2020), if a client doesn't pay on time, the late payment fees ASIC applies are quite onerous:
- Up to one month late - $82
- More than one month - $340
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
RECOMMENDED: Generate the ASIC payment form and Macquarie withdrawal form online: ASIC Fee Prepayment
MANUAL METHOD:
So how does this work?
- Download the following form: Advance payment remittance advice
- Have your clients write a cheque* for $383 (from 1 July 2020)
- Send the cheque and completed form to ASIC
- Update ASIC (via Intello as the registered agents) 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 $2020 which is a saving of $710 over 10 years (based on the current annual fee of $273 from 1 July 2020).
Other things you need to know:
- At this stage payment to ASIC can only be made via cheque*
- Intello will track the prepayment in the SMSF accounts of your client
- Please send a copy of the completed form to Intello 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 $55 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 (this can be signed with the annual account for the SMSF).
*It is possible for Intello 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 asic@intello.com.au
You can find out more about the 10 year prepayment on the ASIC website here.
If you have any questions about the ASIC prepayment option for your clients SMSF trustee companies, please submit a request.
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