Professional Fees

When trying to accumulate for your retirement, the last thing you need is excessive fees eating it away.

It is believed that a fixed price agreement before the start of any assignment would suit both parties. Fixed price agreement is transparent from the client’s point of view, but at the same time, it enables the fund administrator and auditors to schedule workflow and would work to the advantage of both parties. This ensures consistency in understanding and upholds our integrity in the industry. Any future work will be undertaken on a fixed price agreement. Our professional fees are based upon the degree of responsibility, along with skill involved. Instead of charging an hourly rate which can be subjective and open to interpretation, we have chosen to bundle our services based on the number of investments self managed super funds hold, during the financial year. This takes into consideration:

Acquisition of investment
Establishment of asset registers
Dividends declared
Rents received
Interest income
Share splits
Corporate Announcements
Mergers and acquisitions of a particular public company
Subsequent disposal (Sale) of an asset (if any) during the financial year
And much, much more…

Our professional fixed fees are based on 16 Australian investments or less, held during the financial year. As your SMSF grows in size and the number of investments held increases, our fees will be increased proportionately to reflect the time required to prepare the financial statements and fund tax return. Click here to read about our investment fees schedule.

Fees Calculator

 

Comparison with Managed Funds

SATO SMSF Administration® professional fees are much less than the fees incurred when investing in managed funds. Managed funds entry fees normally range between 3% – 5% and ongoing annual fees about 1.5% or more of the amount invested. For example, if $500,000 was invested in a managed retail super fund, entry cost would be between $15,000 and $20,000 from day one, and $7,500 on an annual basis. Life Office fees can be higher. It is common for Life Office fees to be exorbitant, such that clients receive back less than the client has paid in even after ten years.

How do we keep our fees low?

We have in place rigorous internal processes and procedures to ensure productivity;
We operate in a paperless office environment – all clients’ source documentations are scanned for ease of storage and retrieval of data efficiently, on our server. This minimizes storage costs and savings are passed onto our clients;
Standardization of operation through in-house developed templates minimize data entry and human errors;
All our accountants specialize in administration and are familiar with fund accounting standards, taxation legislation and compliance with the Superannuation Industry Supervision Act 1993;
We can offer electronic delivery of financial statements and fund tax return in the form of portable document files (PDF), where requested;
Where appropriate we may utilize data feeds services to streamline data processing and to minimize human errors;
Economies of scale – we manage hundreds of funds and are experts in the field of administration and compliance;
Workflow schedule is allocated to staff members who can perform the task most efficiently and reliably, at the lowest cost; &
Your work will always be reviewed and managed by a client manager and you will always have access to that person.

Fund Establishment $330 (fixed price GST Incl.)

The professional fees for the establishment of self managed super funds, is $330 (GST inclusive). This is regardless of the balance of your fund, and the number of investments you may hold in the future. This includes the superannuation trust deed, minutes of meetings and trustees consent to act form, and much, much more. Read about our fund establishment guidelines.

Administration Compliance Services & Audit $1,200 (includes GST)

Should you decide to engage in our annual administration service, the agreement will be effective immediate. A schedule is provided below detailing the fixed price arrangement and associated professional fees, as well as our obligations for the next 12 months of the engagement. There is no lock in contracts. If you are satisfied with our service and professionalism then our engagement is ongoing. Should you wish to transfer to another administration provider, all our documentation is in electronic format for your retention and ease of retrieval.

SATO SMSF Administration® is independent of all the major banking institution and stockbrokers, which means there are no commissions or hidden fees paid to us. The most important variable is the completeness and correctness of the records and source documents provided to us by clients. In a traditional accounting practice, costs rise where documents and records are missing. At SATO SMSF Administration® this issue is eliminated.

As always we will keep you advised regarding the status of the assignment and your ongoing investment in our annual administration services. Our professional fees are based on you keeping all source records to support bank statement movements. In particular, this includes:

  • All bank statements of your nominated bank account
  • Either cheque butts and deposit slips (or a complete summary)
  • All dividend and distribution notices
  • Contracts for purchase / sale of shares or other investments
  • Correspondence in relation to any reconstructions, share splits / consolidations
  • Full details regarding acquisition of shares/units sold during the financial year
Fees Calculator

 

Insurance

All our accounting and taxation work are covered by appropriate professional indemnity insurance. In addition, we only hire tertiary qualified staff members who are prepared to maintain their currency of knowledge through continuous professional developments (CPD). This ensures that your superannuation fund remains compliant with the Superannuation Industry Supervision Act 1993. Compliance is essential to maintaining the concessional tax concession granted to the fund.

Company Incorporation $990 (GST Incl.)

  • Should you wish to establish your fund with a corporate trustee, our company registration package includes the following documentation:
  • Certificate of registration of a Company – registration of company name, date of incorporation and allocation of an ACN (Australian company number);
  • Consent to act as director(s);
  • Application for shares;
  • Consent to act as Public Officer;
  • Register of members;
  • Minutes of members;
  • Minutes of directors;
  • Share certificates; &
  • Company constitution.

Our expectation of Trustees

During the financial year, self managed super funds will enter into transactions with various entities and third party providers. This includes banks, stockbrokers, share registries, property managers and real estate agents. Communication will include various forms and medium such as:

  • Bank statements – for full financial year or part thereof;
  • Dividend notification;
  • Corporate actions – such as share splits and consolidation, bonus issues etc;
  • End of year share balances;
  • Rental income received;
  • IPOs;
  • Mergers and acquisitions announcements;
  • Contract of Purchase and Sale;
  • Contract of sale for investment properties; &
  • Asset valuation.

Fund trustees engaging in SATO SMSF Administration services are encouraged to use the following dividers and separators for professional collation and records of the fund’s transaction during the financial year. The systematic recording of transaction and ease of retrieval is one of the methods we use to keep our professional fees competitive.

External Fees

The following additional external costs will be incurred by self managed super funds and can be required to be paid separately to our ongoing annual administration and compliance services:

  • Australian Taxation Office Supervisory levy $259 **
  • Actuarial Requirements – for superannuation funds in pension mode.
    ** The ATO supervisory levy of $259 is for the financial years (2013 to 2016). This is subject to change at the discretion of the ATO.

We look forward to continuing our mutually rewarding association. Should you have any queries in relation to the above, please do not hesitate to contact our office.

 

 

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