SMSF Lite is a fully administered, online service that provides Advisers and their Clients with a complete solution for all their SMSF needs, for only $880 per annum (incl. GST).

SMSF Lite’s administration service includes among other things, the preparation and submission of an annual tax return and activity statement (to allow you to receive a GST refund), the production of an independent audit report, as well as all associated supporting compliance documentation required.

SMSF Lite allows Advisers for the first time, to provide a seamless, end to end service to their Clients - without the need to engage external third parties, such as accountants.

It has been built specifically for Financial Advisers and comes with a complete suite of planning tools, to allow you to be more proactive and better engage with your Clients.

At $699, SMSF Lite represents a paradigm shift in the conventional wisdom that a minimum balance of $250,000 is required to make having an SMSF economically viable.

Having a SMSF, may now be far more attainable for your Clients whose superannuation savings are currently held in Retail, Employer or Industry Funds.

The key to providing such a feature rich product at this price point is automation and technology. To enable high levels of automation, SMSF Lite constrains available investment, to those where electronic data feeds are readily available i.e. cash, term deposits and all listed Australian securities (including Exchange Traded Funds)¹.

Owning our own technology means that unlike accountants or other administrators, we do not have to pay for software costs to external parties.

It also allows us to ensure our platform is continually optimised to reduce processing overheads.

¹ This excludes Instalment Warrants and Exchange Traded Options.

Cash, Term Deposit and Equities currently represent over 80% of assets held by SMSFs, so SMSF Lite will in all likelihood already cater for many of your Client’s existing investment needs.

In addition, with the ever increasing growth in the number and diversity of ASX Exchange Trade Funds, arguably the majority of Client investment profiles can be achieved using investments supported by SMSF Lite.

IDS Super is a Perth based technology business, established in 2009, that builds wealth solutions for the Australian Financial Services industry. Since its inception, IDS Super’s technology has been used to prepare, complete and submit multiple thousands of SMSF returns on behalf of Advisers and their SMSF Clients.

IDS Super offers a range on online SMSF and portfolio solutions to the wealth management industry, including SMSF Plus which is a fully administered SMSF administration service for Financial Advisers who have clients with a full suite of financial assets<sup>1

1</sup> This includes those assets without electronic information such as real estate, managed funds, collectables and art work, as well as derivatives and international equities.

No, SMSF Lite is hosted by Next DC (NXT), an ASX listed data centre provider.

Our servers are hosted at their Perth data centre, which is based in Malaga, Western Australia. NXT’s data centre facilities feature multiple fail safe measures to ensure SMSF Lite is maintained without interruption to you and your business.

SMSF Lite’s data is backed up each evening and distributed to multiple NXT DC data centres around Australia.

No, all manual administration tasks are performed by our administration team based in Perth.

In order to keep costs down, IDS Super recommends that SMSFs use one of the following cash management accounts (for which we receive free data feeds) as the key transactional account:

Macquarie Bank CMA

ANZ V2 CMA

Bankwest CMA

Where an Adviser’s SMSF clients do not use these one of these cash accounts, other Bank and Cash Management Accounts may be supported, however an additional annual fee of $30 per annum will apply, to recover the costs associated with sourcing this data.

The daily reconciliation of ASX securities is critical to the automation and accuracy of portfolios held on the IDS Super Platform. IDS Super supports the execution of securities through any broker that is able to provide us with access to one daily composite file or three files (our preferred format) containing the following information:

Daily CHESS Holdings file - which contains all CHESS balances as at the “close” of the previous business day;

Daily CHESS Transaction file - which contains all CHESS movements for the previous day, accompanied by the respective CHESS transaction Codes; and the

Daily Trades file - which contains details of all ASX Contracts executed for the previous business day.

In addition, it is critical that the Broker is also able to provide an e-mail of the Contract Note to IDS Super, in support of the year-end audit process.

Ideally, Term Deposits should be sourced through Australian Money Market (AMM), through which we obtain electronic data feeds

Where AMM is not used to make Term Deposit investments, a processing fee of $10 per Term Deposit, will apply.

Yes, SMSF Lite provides a comprehensive and highly structured online New Fund establishment service.

Typically, it will take approximately 10 minutes to enter the details of a new SMSF and print out the required documentation.

We will register all new Funds for ABN, TFN and GST purposes.

However receipt of an Australian Business Number (ABN) and Tax File Number (TFN) may take up to 28 days¹.

¹ This Service Level Agreement (SLA) is stipulated by the Australian Taxation Office (ATO).

The costs associated with establishment depend upon the Trustee arrangement selected.

For those Funds with Individual Trustees, the cost is $110.

For those Funds with Corporate Trustees, the cost is $660.

For Corporate Trustees, this price includes the ASIC registration fee of $538.

It also includes the costs associated with the documentation to establish a Special Purpose Vehicle (SPV).

Yes, SMSF Lite provides a comprehensive and highly structured online Fund transfer service. Typically, it will take approximately 10 minutes to enter the details of an existing Fund, which is to be transferred.

Due to the highly structured nature of transferring a Fund, SMSF Lite is highly prescriptive in terms of the documentation that must be provided.

We will provide you with full details of these requirements as part of this process.

Regardless of whether the Trustee arrangements are Individual or Corporate, SMSF Lite charges $110 for the transfer of each Fund onto SMSF Lite.

Yes - where a Client decides to use SMSF Lite, they can continue to use their existing trust deed.

No, in order to keep the cost of SMSF Lite as low as possible, the investments of Member Accounts cannot be held separately from those of other Member Accounts.

It is therefore important to ensure that all Members of SMSF Lite have the same investment objectives, as they will all proportionally hold the same investments as each other.

Yes, all documents can be re-branded to the livery of the Dealer Group or individual licensee. However, there are likely to be costs associated with the re-branding process. These costs are subject to negotiation and will be depend on the number of SMSFs the Adviser or Dealer Group believe will use SMSF Lite.

Yes, all new and transferred Funds are automatically registered for GST, allowing an annual refund of up to 75% of the total GST expenses, incurred during the year.

This can provide significant benefits and substantially reduce the overall cost of running a SMSF.

For example, assume that a Financial Adviser charges $5,000 per annum to manage a client’s portfolio. In addition to this fee, assume that the adviser charges total brokerage or transaction fees throughout the year of $2,500.

The total GST charged for the year would be $750, allowing the Fund to claim back 75% of this amount.

This would result in annual refund of $562.50, meaning an effective annual cost of $136.50 versus our headline cost of $699 a year.

No, Statutory fees such as those associated with the Annual ATO SMSF levy of $259¹ are not included.

Additionally, if the Trustee is a Corporate Trustee, the ASIC special purpose company annual review fee of $56 is not included.

Any fees associated with items such as actuarial certificates that are required to support the calculation of exempt current pension income (ECPI), are not included.

¹ Note - a fee of $518 will apply to newly registered Funds, representing payment for the following year’s Levy in advance.

SMSF Lite calculates and invoices its ongoing administration fees quarterly in arrears based on July - September, October - December, January - March and April - June billing cycles.

For New Funds: where a new Fund is established part way through a year, ongoing Fund administration fees will be only applied on a pro-rata basis.

However, due to the fixed cost nature of SMSF Lite’s tax and audit arrangements (currently $220.00 inclusive of GST), an adjusting amount will be added to the final April - June quarter, to ensure that the annual audit and tax cost is fully recovered.

For example, if a new Fund was established and became “Active” on February 15^th 2016, a Fee of $87.38 would apply to the January - March quarter (45 days ÷ 90 days x $174.75).

However, a Fee of $312.25 (an extra $137.5) would apply to the Apr - Jun quarter, to enable the full annual audit and tax costs to be recouped.

Under this scenario, the total SMSF Lite administration fee charged for the Financial Year would be $399.63

For Transferred Funds: where an existing Fund is transferred onto the SMSF Lite service, a full year’s fees will be charged, regardless of the date of transfer. Any fees payable in relation to previous quarters, will be included in the quarter in which the Fund becomes “Active” within SMSF Lite.

For example, where an existing Fund becomes “Active” in the October - December quarter, the Fund will be invoiced for two quarters worth of Fees, i.e. $349.50 (2 x $174.75) which includes backed date fees of $174.75 for the July - September quarter.

Yes, we recognise that Advisers may be required to provide administrative support to their SMSF clients and therefore, should be entitled to be reimbursed for their time spent doing this.

Where you negotiate an Administration Fee with you Client, this can be entered as part of the New Fund or Fund Transfer process and will be added to the $699 annual fee and displayed within each Invoice as a specified line item.

You can elect to increase or decrease this fee annually.

To initiate the new Fund process, the Adviser simply logs onto the SMSF Lite system uses the “New Funds” wizard. The system produces all of the necessary documentation required for Trustee authorisation to enable Fund establishment.

The ability to establish an SMSF through SMSF Lite is important for Advisers because it means Advisers can actually establish an SMSF for a client while they sit with the Adviser or very shortly after presenting a Statement of Advice (SOA).

IDS Super registers new SMSFs online with the ABR (Australian Business Registry) at no additional cost. The ABN, TFN and GST registration are obtained through this registration.

Once the Funds ABN and TFN are issued by the ATO (Australian Taxation Office), IDS Super will e-mail the Financial Adviser with these details along with all of the Fund establishment paperwork (including the Trust Deed).

The Financial Adviser can then co-ordinate client authorisation of the paperwork and establish the Fund bank account and Broking account.

Fund Transfers are performed using a highly structured process, consisting of a number of screens and associated tasks which need to be completed sequentially, by both the related Financial Adviser and IDS Super.

Yes, a "pro forma" investment strategy is produced for each fund established or transferred onto the platform.

The investment strategy is kept as broad and generic as possible to accommodate all possible investment strategies allowed for within the law and SIS Regulations. This also removes potential audit contraventions that may inadvertently occur if asset allocation ranges are defined prescriptively.

Tax Agent services are provided by IDS Super Pty Ltd, who are registered with the Tax Practitioner's Board (Registration Number 25805857).