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Rollover

Discussion in 'Superannuation, SMSF & Personal Insurance' started by SWR, 19th Jan, 2011.

  1. SWR

    SWR New Member

    Joined:
    18th Dec, 2008
    Posts:
    3
    Location:
    South West Rocks,NSW
    A question for Superman if I may.

    My wife and I are currently trustees of our SMSFwhich I would like to rollover to a newly established ESuperfund account.

    Assets comprise a portfolio of Australian Shares and cash.

    I am 62 years of age , my wife turns 55 in Feb and I am currently drawing an Allocated Pension on the fund.

    My question is do I have a CGT issue on the rollover of the shares?

    I would really appreciate any assistance

    SWR
     
  2. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Hi SWR,

    This is an easy one.

    NO - there will be no CGT as their is no change in the beneficial ownership.

    The shares will still be owned by the SMSF - you are just changing broker (to E*Trade)

    Question for you: Why didn't you contact ESuperfund with this question?

    Oh yeah - that's right! They don't provide advice!

    Good luck with everything.

    SM
     
  3. SWR

    SWR New Member

    Joined:
    18th Dec, 2008
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    Location:
    South West Rocks,NSW
    Thanks for that Superman.

    And point taken .

    I am in a rural area and finding good compliance service hard to find locally.

    SWR
     
  4. yvonnegee

    yvonnegee New Member

    Joined:
    22nd Mar, 2011
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    Location:
    Mandurah, WA
    Clarification?

    Hi Superman, Thanks so much for all your simple advice and useful education provided. Just looking for a clarification. Possibly I have misunderstood the basis of the question from SWR or the ATO rules.

    If SWR is rolling over shares from an existing SMSF to a NEW one established by Esuperfund, won't the new superfund have a different name, ABN and TFN? I understood that ESuperfund now only offers to establish new funds and not to continue with existing ones. (Maybe SWR is able to transfer the old fund with its name, ABN and TFN, to Esuperfund, in which case I have no question about your answer.)

    If it is a totally new SMSF, as there is no change in the beneficial ownership of the shares, is your statement still valid - that the change in ownership is analogous to a change in broker and accountant, so no CGT event is triggered?

    I'd be interested in your clarification of that point.
     
  5. Superman

    Superman Well-Known Member

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    6th Nov, 2007
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    Location:
    Gold Coast, QLD
    Hi Yvonne,

    I have just checked ESuperfunds website, and they no longer accept existing SMSFs as clients. Existing SMSF

    If someone does end up transferring all their investments from an existing SMSF to a new SMSF, then in that situation there will be a beneficial change in ownership and CGT will be incurred if those assets are used to support a member(s) in accumulation phase.

    In the case of Esuperfund I believe they will only accept a cash rollover - not an in-specie rollover of shares (off market transfer) - so the shares would need to be sold and the cash transferred to the new fund.

    In my experience it often ends up more costly (time and money) transferring assets (off-market transfers etc), completing rollovers and winding-up an existing SMSF to a new SMSF with a lower cost SMSF administrator.

    There are other SMSF accounting and administration providers that provide full service and provide a virtually unlimited number of options in terms of bank accounts and brokers (or investments in general) while still being competitive on fees and providing full online access to your SMSF accounts. Please feel free to contact me if you want further information on such a service.

    SM :cool:
     
  6. K_veg

    K_veg Active Member

    Joined:
    24th Jan, 2011
    Posts:
    32
    Location:
    Milan, MI
    Hi Superman... can you let me know details of SMSF accounting / admin providers as mentioned in your post above? Trying to help my mum with her super...

    Thanks!
     
  7. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
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    Location:
    Gold Coast, QLD
    Have replied to you via email K_veg.

    Kris ;)
     
  8. manoj

    manoj Member

    Joined:
    25th Nov, 2008
    Posts:
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    Location:
    sydney

    it is a bit older post - i am sure you must have found someone by now. If i were you and looking just at the website - I will seek to speak to atleast 3 trustees who have used the service for atleast 5 years ....

    When i called "them" in Melbourne - after shifting my call to 3 people ... i was told by a heavy voice that due to privacy reasons they cannot supply this information to me.... which was surprising - because if you are a happy client - you will normally agree drum your advisors business...

    lastly the "game" is not about who can cruch numbers cheaply (as the smsf is the only tax returns which 100 accountants will come with the same result - if they know what they are doing), but it is about who can implement all the strategies for you.... investing the money is another but a "diffirent game" usually played by financial planners, brokers and real estate agents etc...