', 'auto'); ga('send', 'pageview');

Super and Investment Update 2022

By Peter Vickers Business Group | Nale, Lindfield Superfunds Investment Trust, Investment Philosophy, Audit of SMSF's |

LINDFIELD SUPER FUNDS INVESTMENT TRUST

We started the Lindfield Superannuation Fund for clients and their employees that did not want to join an industry or retail fund or run their own self-managed super fund. As the rules kept changing, so we changed the fund. However a few years ago the administration arm was sold without our input and our link to the fund was terminated. The latest result for this sub fund clearly states that we are not involved but still uses our trademark logo. The result for the year was a gain of 14.9%. It is not ethical for us to suggest that you take your money out but you should certainly review your membership.

We therefore arranged for people with larger balances to setup their own SMSF and we set up the Lindfield Super Funds Investment Trust to invest the SMSFs money. In the year ended 30 June 2021 this trust returned a net profit of 29.4% before income tax that is levied or refunded in the individual SMSFs. As this trust distributed franking credits a refund should normally occur less the fees for running the SMSF.  We can guarantee that the results in the 2021/22 year will not be anywhere near this. 

INVESTING PHILOSOPHY

This Investment Trust follows a well proven investment philosophy. We have come across a number of articles that state that in any ten year period if you are out of the market for ten particular days then you will miss out on substantial gains. As you can imagine it is not possible to pick ten days out of 3,652 days. Thus you must be invested and not leave your money in cash. The trust invests in shares listed on the Australian Stock Exchange but tries to only have a limited number of investments.   They normally pay franked dividends so if for the other 3,642 days that the price is not rising dramatically income is being generated. Also we do not invest in 50 or 100 shares but have a select group usually picked out of the top 200 companies.

AUDIT OF SMSFS

From 1 July 2021, the same accounting firm that produced the accounts is not permitted to audit the SMSF. This is the pronouncement by the Australian Taxation Office based on a biased view of the 211 pages in length of APES 110, Code of Ethics for Professional Accountants issued by the Australian Professional & Ethical Standards Board based on the publications of the International Federation of Accountants. We have taken the view that the most valuable part of our service to our clients is the advice that we give them which includes preparation of the financial statements and tax return. You might be surprised to learn that APES 110 does allow an auditor to prepare the income tax return and actually requires the auditor and client to consult with each other on important audit matters. 

We have thus located a cloud based auditor to audit the funds that we are not permitted to audit. The major part of the audit is the uploading of documents by us into www.onlinesmsfaudit.com.au portal and ensuring that every document that might want to be seen by the auditor is there. Some of our funds commenced over 42 years ago and thus some of these documents were not required at that time. 

NALE. (Non Arm’s Length Expenditure)

Another sledgehammer approach to regulation. Some of the costs of running an SMSF were being paid by the employer or member. This was considered a heinous crime by public servants. Thus they introduced NALE or section 295-550(1) (b) and (c). All expenses of the super fund must be paid from the super fund. Thus our fees for the super fund for which we will issue a separate invoice addressed to the super fund, the actuary’s fee and the auditor’s fee must be paid from the super fund bank account. 

The advice in this newsletter is general advice and does not take into account your individual objectives, financial situation or particular needs. Do not take any action based on the information provided without first discussing it with us. 

If you’d like more information on how to grow your business, please contact one of our accounting and tax experts using the button below.

Categories

SUBSCRIBE


Join our newsletter subscription

SYDNEY


Suite 2/345 Pacific Highway,
Lindfield, NSW 2070

T: 61 2 9496 2300
services@pva.com.au


Peter Vickers Insurance Brokers

Suite 2/345 Pacific Highway
Lindfield NSW 2070
T: 1300 784 011
enquiries@pvib.com.au

WINDSOR


Suite 3, 31 Brabyn Street
Windsor, NSW 2756
T: 61 2 4577 4455
windsoroffice@pva.com.au


Follow us on Social Media @pvbglindfield   

© Copyright 2021 VICKERS BUSINESS GROUP Pty Ltd | 1300 784 011 | 02 9496 2300  Our Privacy Policy

Follow us on Social Media @pvbglindfield    


Chartered Accountants:  Liability Limited by a Scheme under the Professional Standards Legislation - AFSL 229302  Peter Vickers & Associates Pty Ltd ACN 003466813 | Peter Vickers Insurance Brokers Pty Ltd AFSL 229302 ACL 229302
Peter Vickers Insurance Brokers is part of the Steadfast broker network.