Choice of Fund

Written by Hein Preller , Posted in Information

Under Choice of Fund, you can choose to have your employer contributions paid directly into your SMSF.

The 3 things your employer is most likely to ask for are:

  1. Bank Accounts – Account number and BSB in the name of the SMSF
  2. ABN of the Fund – give them a copy of the ABN registration
  3. Trust Deed – this is to verify you are a member of the SMSF

Another option is to let the employer continue to pay into your existing retail fund, from which you roll over to your SMSF over a period of time.

Your employer might ask you to fill out the Choice of Fund document from the ATO. Just check with your HR department on their requirements.

The advantage of keeping the retail fund open is that it gives you access to low insurance rates via group insurance policies negotiated by the Industry Funds.

Disadvantages are that most funds charge a rollover fee of around $50 and you’ll continue paying fees and charges on your retail fund. Retail funds also employ delaying tactics to defer the payment of balances over to your SMSF. Some retail funds are reluctant to let go of your money even though it doesn’t belong to them.

Trackback from your site.

Hein Preller

Hein is a Director at Superannuation Warehouse, specialising in setting up new SMSF's. Hein's company performs all the annual administration tasks consisting of preparing financial statements, lodging a tax return and arranging the audit.
  • Duro

    Hi i have a wierd one I am a state government employee and have been contributing to that state administered fund. I also have a SMSF ans recently asked for a rollover form to which i received this response.

    “Thank you for your recent enquiry regarding your super.

    The XXXX does not allow partial withdrawals. The only way that you can complete a rollout at this point in time would be a full rollout once you have left State Government employment.”

    i have no intention of leaving or closing my account can they do this??

    • superannuationwarehouse

      Duro,

      Under choice of super, you are suppose to put super where you choose. However, there’s always exceptions for government funds and my understanding is this is indeed legal.

      We know of other Funds in a similar position. There are restrictive clauses in the Deeds of these older funds which allow for these restrictions.

      Keep well,

      • Duro

        Thanks for the info
        its just really disappointing when i can actually see the balance of My super falling right in front of my eyes and really have no say in the matter as to what or how it is invested.
        I dont have that problem with my SMSF.

Contact Details


logo-grey

Peace Of Mind

We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.