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2023 Annual Compliance Procedure


What are your SMSF Annual Compliance Requirements?

Your SMSF must attend to certain annual reporting requirements each and every year. These include:

  • Preparation of an annual Balance Sheet
  • Preparation of an annual Profit & Loss Statement
  • Preparation of annual Member Statements
  • Preparation of annual Trustee Resolutions & Minutes
  • Preparation of an annual Income Tax Return
  • Preparation of an annual Audit
  • Lodgement of the annual Income Tax Return

The above annual compliance requirements are the compliance requirements that an SMSF must attend to annually. Importantly ESUPERFUND attends to the above annual compliance requirements for your SMSF. You do not need to arrange for another accountant to prepare the above annual documentation as they are completed by ESUPERFUND. Similarly, the above documentation is covered by our annual fee. The process to prepare the annual compliance documentation for your SMSF is detailed as follows:

2023 Annual Compliance Process:

Step 1: Annual Checklist released in your Client Portal

In order for us to attend to the above reporting requirements for the 2023 Financial Year for your SMSF, you will be required to complete the 2023 Annual Checklist. The Checklist details information we hold for your SMSF and requests additional information we require from you.

Step 2: Complete Part 1 - Data Collection

The Annual Checklist is split into 2 parts. The first part is “Data Collection” and the "Data Collection" Tab asks you a series of questions about the Investments made by your SMSF during the Financial Year. Based on your answers the system will determine what additional data is required by ESUPERFUND.

If we received the data electronically for the SMSF Bank and Broker accounts, no information is required from you.

If your SMSF holds other Bank and Broker accounts where we do not receive data automatically, additional data is required from you. The system will prompt you to provide the data and once provided the data will need to be reviewed by ESUPERFUND (see Step 3 below).

Step 3: ESUPERFUND reviews the Data Collection

If your SMSF holds other Bank and Broker accounts where we do not receive data automatically, the data provided by you via the Data Collection will need to be reviewed by our office before you can proceed to the next part of the Checklist.

If you have authorised ESUPERFUND to receive Trading Data on some brokers (e.g. CommSec Options), we can only complete the Data Review Process after the broker finalises your linkage authority request and sends us the electronic data for the newly linked broker.

Once the account has been linked to ESUPERFUND or where there is no linkage authority request, it will take around 5 to 7 business days to complete the Data Review Process. The actual time may vary depending on the number of transactions and trades we need to verify.

  • If your Superfund only invests in few bank/broker accounts with a low volume of data, we will endeavour to complete the review within 5 business days.
  • If your Superfund invests in multiple bank/broker accounts with a high volume of data, the review time may exceed 7 business days.

As soon as we have completed the Data Review Process, we will contact you via the Client Portal Inbox.

Step 4: Complete Part 2 - Remaining Checklist

Part 2 of the Checklist will request you to code items and provide supporting documents relating to the data from Part 1. Further documents required for audit purposes such as Contribution related documents, invoices and Annual Minutes are also collected in part 2 of the Checklist.

Step 5: ESUPERFUND completes the Annual Compliance Documentation

ESUPERFUND completes the Annual Compliance Documentation in the order in which the Online Checklist is submitted by clients. Accordingly, we encourage you to submit the Online Checklist at your earliest convenience to ensure the timely completion of the Annual Compliance Documentation.

Step 6: ESUPERFUND may request further information from you

Should we require further information to finalise the Annual Compliance Documentation, you will be contacted via the Client Portal Inbox and the information we require will be detailed on the "Action Required" tab of the Checklist.

Step 7: ESUPERFUND finalises the Annual Compliance Documentation

After we have finalised the Annual Compliance Documentation for your SMSF, you will be notified via the Client Portal to review the Compliance Documentation. Once you are satisfied that the documentation is correct, you simply have to sign the lodgement declaration to enable us to proceed with the lodgement of the Income Tax Return with the ATO.

Step 8: Tax Liability Paid by you (or Tax Refund Issued)

The Annual Compliance Documentation will indicate the Tax Liability/Refundable amount.

If the Annual Return results in a Tax Liability, ESUPERFUND will provide you with the relevant BPAY details, the Tax Liability due and payable and the due date. You will need to pay the Tax Liability from your SMSF Bank Account before the specified due date. Please note that given ESUPERFUND does not have transaction access to your SMSF Bank Account, we are unable to make the payment on your behalf.

Alternatively where your SMSF is entitled to a Tax Refund the Refund will be banked into your SMSF Bank Account by the ATO generally within 28 business days after the lodgement of the Tax Return.

At this time the Annual Compliance Process will be completed.


What's New in the 2023 Annual Checklist?

We continue to improve the Online Checklist to provide you with a better user experience and to ensure that the Annual Compliance requirements are completed as efficiently as possible.

Please find below some of the major new features that have been integrated into the 2023 Annual Checklist:

1. “Download Sample Document” feature helps you to upload the correct document.

In Part 2 of the Checklist, we collect documents such as Contribution-related documents, invoices, and Annual Minutes for audit purposes. To assist you with the completion and submission of the correct documents, we have introduced the “Download Sample Document” feature in the 2023 Annual Checklist.

The “Download Sample Document” link is located next to the Document Type. If you are unsure of which document is required to be uploaded or you require a template of the document for completion (e.g., the Minutes of the meeting of Trustees), you may simply click on the “Download Sample Document” link to download the sample documents. You may then complete the sample documents and upload the completed document.

2. Rollovers/Contributions/ATO Payments processed via SuperStream are coded automatically.

ESUPERFUND is a registered Messaging Service Provider with the ATO for SuperStream, and we receive SuperStream data electronically. As a result, the following transaction types processed via SuperStream will be automatically coded in the Checklist, requiring no input from Trustees:

  • Contributions made by your Employer and processed digitally via SuperStream.
  • Cash Rollovers to/from the Superfund processed digitally via SuperStream.
  • Payments to the ATO under a valid ATO Release Authority issued digitally via SuperStream.

Please note that if a transaction is not processed digitally via SuperStream, we will be unable to code the transaction due to the absence of relevant data.

3. Contribution/Withdrawal details are editable on the Contribution/Withdrawal Summary directly.

In previous versions of the Online Checklist, if you needed to edit the details of Member Contributions/Withdrawals (such as changing the Member or Contribution/Withdrawal type), you had to go back to the Coding step and modify the transaction accordingly. We understand the inconvenience of this process, and we have implemented some improvements in the 2023 Annual Checklist - Contribution/Withdrawal Summary.

If you need to modify the details of Member Contributions/Withdrawals, you can now directly edit the transaction on the Contribution/Withdrawal Summary without having to return to the previous Coding step.

However, if you need to change the nature of the Contributions/Withdrawals to a different transaction type, the system will still guide you back to the previous steps to collect the relevant information.

4. The Personal Payments and Non-Cash Transaction screens have been redesigned for a more user-friendly experience.

Taking user feedback into account, we have completely revamped the Add Transaction function on the Personal Payments and Non-Cash Transaction screens. The new design incorporates a user-friendly approach by presenting the information in a pop-up window. The questions have been meticulously crafted to ensure clarity, guiding you through the process and prompting you to provide all required information in a single interaction.


 
 
Frequently Asked Questions

Section One: Data Collection

+ Why do I need to provide the Bank Statement for the CBA Accelerator Cash Account for the 2023 Financial Year?

Regrettably, as of March 18, 2022, our office has discontinued the receipt of daily data from CBA, and consequently, we are unable to procure the Bank Statement from CBA any longer.

Accordingly, we require the bank statement for the entire 2023 Financial Year for audit purposes. The auditor needs to verify the transactions data against the official bank statements as part of the audit process.

+ How do I obtain the Bank Statement and Electronic Data File for the CBA Accelerator Cash Account?

To download the Bank Statement for the CBA Accelerator Cash Account for the 2023 Financial Year:

  1. Log in to CBA NetBank
  2. Select View Accounts > Statements
  3. Select the account from the drop-down list
  4. Select 2023FY and Tick "Select all" and click on "Download Selected"; and
  5. If the last statement shown is not issued on 30 June 2023, use the "Create Summary" column to generate the transaction and account details for the missing period to 30 June 2023

Should you have any further queries in downloading the bank statements in pdf format, you may contact CBA Netbank on 13 22 21.

To download the CSV File for the CBA Accelerator Cash Account for the 2023 Financial Year:

  1. Log in to CBA NetBank
  2. Select View Accounts > Statements
  3. Select the account from the drop-down list
  4. Select the Date: 01/07/2022 to 30/06/2023 and click “Search” and click on "Export"
  5. Select “CSV” file and click on “Export
+ Do I provide details of the Managed Funds investments in the Data Collection step?

If your SMSF has acquired or sold Unlisted Managed Funds (e.g. using providers such as Colonial, Perpetual, Vanguard etc) details will be requested later in the Coding section of the Checklist and no information is required from you in the Data Collection step.

If your SMSF has acquired or sold Listed managed funds using the mFunds Service with a broker, the Broker and trade details are required to be provided under the “Australian Shares” tab of the Data Collection step. If the Listed Managed Funds were traded via the EBROKING mFunds service, the trades are automatically listed on the “Australian Shares” tab and no further information is required from you.

+ ESUPERFUND asked me to provide further information regarding Data, what should I do?

We advise that the additional information we require from you regarding your SMSF's data is detailed on the "Action Required" page of the 2023 Online Checklist. To access the "Action Required" page, please click here to login to your Client Portal. Please open the 2023 Online Checklist by clicking "View Checklist" and then click the "Action Required" tab (the last tab under the "Data Collection" section).

Please provide the requested information via the "Action Required" page. You will not be able to proceed to the remaining parts of the Checklist until you have provided the additional information.

+ How can I improve the processing time of the Data Review Process?

Here are some tips to avoid delays:

  • Please provide the official statements issued by the Financial Institutions.
  • Please provide the official statements covering the transactions for the entire Financial Year (1 July 2022 - 30 June 2023). If the account was opened or closed during the financial year then the statements should cover the entire period the account was open during the year.
  • The statement should clearly show the owner of the account (i.e. the name of your SMSF).
  • If you are not sure what documentation is required, please refer to the sample document available on the relevant page of the Online Checklist.

Section Two: Coding and Remaining Checklist Tabs

+ The SMSF participated in a Share Purchase Plan and received a scaleback refund, how should the initial payment and subsequent refund be coded?

Please code the amount paid as "Split into multiple codes" to break down the transactions as follows:

Amount Transaction Code
Actual cost of shares allotted $ Actual cost (debit) Investment Purchase (incl. Corporate Action)
Scaleback refund $ Scaleback refund (debit) Reversal of transaction

Please note that the deposit received in the SMSF’s bank account subsequently for the scaleback refund should also be coded as "Reversal of Transaction".

+ How should I code the property related transactions?

Property Purchase: Please code the payments made for the purchase of the property (i.e. deposit and settlement payments) as "Investment Purchase (incl. Corporate Actions)" and select "Property" as the Investment Type. Please click on 'Add' to add the property type and property address details.

Property Expenses: For all expenses incurred in relation to the property, the amounts should be coded as "Property Expense (incl. GST)".

If the property was purchased in the 2023 Financial Year, please ensure you have coded the property purchase transactions first.

Rental Income: Please code the amount received as "Rent from Property or Other Assets (incl. GST)". Where the property was rented via a real estate agent, you will be required to provide the monthly rental income and expenditure statement detailing the gross rental income and expenses incurred.

+ I note that some minutes (e.g. Investment Annual Minutes) are required to be completed and signed electronically. How do I complete them?

Step 1: Please click the 'Sign/Edit File' button under the 'Upload' Column to open the document/minutes on your screen.

Step 2: Please enter the meeting venue, meeting date and Trustees who attended the meeting in the table provided at the top of the document.

Step 3: Please review all parts of the Minutes document and provide further information where required:

  • Select "Yes/No" to confirm whether you agree/disagree with the information prefilled into the minutes;
  • Provide detailed information relevant to your SMSF’s circumstances in the text boxes.

Step 4: To sign digitally, please identify yourself from the Trustee/Director dropdown list and then tick the checkbox. Where your SMSF has more than one Trustee/Director, you can use the “Save as draft” function to save the information if all the Trustees /Directors cannot sign at the same time.

Step 5: Once all fields have been completed, please click the ‘Submit’ button to submit the completed minutes. Please note that if some fields are still incomplete, you will not be able to submit the document.

+ Why am I asked to provide documents for transactions categorized as "Reversal of Transaction"?

In previous versions of the Online Checklist, we did not support the documents upload function for transactions coded as “Reversal of Transaction”, only a description of the issue was collected from you. This occasionally resulted in potential audit risks, particularly when the reversal of the transaction wasn't attributed to human error.

In this new version of the Checklist, you are required to upload the supporting documents for transactions coded as “Reversal of Transaction” (examples provided below):

  • Transaction Error: Please provide a Minutes of Meeting of Trustees acknowledging the error. A template of the minutes can be obtained within the Checklist.
  • Other Situations: Please provide the document in the name of the Superfund issued by the other relevant party evidencing these transactions are not related to Member(s) personally.

Section Three: Others

+ Do I still need to complete the Annual Checklist if I previously coded the transactions via the Interim Checklist during the Financial Year?

Yes, even if you previously updated and coded the 2023 Financial Year transactions via the Interim Checklist, you still need to complete and submit the 2023 Annual Checklist.

Any details and documents provided by you previously in the interim checklist are reflected in the Annual Checklist, and therefore you do not need to provide this information again.

However, there are additional documents and information that will be requested from you in the Annual Checklist. This includes confirming that the SMSF has no compliance issues (e.g. disqualified Trustees).

+ Do I still need to complete the Annual Checklist if there were no transactions or assets in my SMSF?

Yes. You are still required to complete the Annual Online Checklist to confirm that your SMSF had no activities and no compliance issues (e.g. disqualified Trustees).

+ Why am I unable to code/edit transactions or upload supporting documents in my 2023 Online Checklist?

The Annual Checklist is divided into two main parts.

The first part is called "Data Collection". If your SMSF has additional Bank and Broker accounts that don't automatically provide data, we require extra information from you. The system will guide you to input this data, which will then undergo a review by ESUPERFUND. During this stage, you won't be able to code or edit transactions, nor upload supporting documents within the 2023 Online Checklist.

Upon the completion of the Data Review Process, we will reach out to you through the Client Portal Inbox and proceed to release Part 2 of the Checklist. At this juncture, you can engage in coding, editing transactions, and uploading associated documents as you work through the completion of Part 2.

+ How do I make changes to the Online Checklist after submission?

We advise that you cannot amend the Checklist after its submission. If you would like to make changes, please simply provide the updated information to our office via the "Action Required" function of the 2023 Online Checklist.

We will take note of the updated information when preparing the Annual Compliance Documentation for your SMSF.

+ What is the "Action Required" function?

We advise that the "Action Required" function enables you to upload additional information to your 2023 Online Checklist after its submission.

To use the "Action Required" function, please click here to login to your Client Portal. Please open the 2023 Online Checklist by clicking "View Checklist" and then click the "Action Required" tab.

+ I wish to provide a depreciation schedule for the property held by the SMSF. Where should I upload the document?

In order to claim depreciation for the property held by the SMSF, a depreciation schedule prepared by a qualified quantity surveyor is required to be provided. Please provide a copy of the Depreciation Schedule via the "Action Required" step after you have completed and submitted the checklist.

+ How can I improve the processing time of my Annual Compliance Documentation?

To ensure that your Fund's Annual Compliance Documentation is processed as quickly as possible, please check your Fund's Client Portal Inbox regularly. If we request further information on the "Action Required" tab of the Online Checklist, please provide the required information to our office as soon as it becomes available.

To ensure that you remain contactable at all times, please update your contact details through your Client Portal here every time you change your contact details.


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