SMSF (Self-Managed Super Fund)

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BETA Release of SMSFs

SMSF BETA 2 release

Please note that SMSFs are currently in a BETA, so we are still improving them and the current modelling has some limitations. During BETA 2 phase, we appreciate your patience and welcome your feedback.

What you cannot model in the SMSF Beta 2 release

(error) If an SMSF has any of the following you should submit the case to our SDS service or check the results carefully (these items will be clearly marked with the rocket icon), as they are not officially part of the websolve:

  • Loans that are secured by shares/managed funds
  • Three or four members
  • Complex requests outside the scope of the current interface

What you can model in the SMSF BETA 2 release

You can model SMSFs with:

  • Two people
  • Investments of cash or shares/managed funds
  • Properties and their mortgages

Even if your case fits the above criteria, you should still be aware of the limitations, below.

Modelling limitations

Your results should be quite robust if your case fits within what you can model, listed above. However, please be aware that it may still have some limitations:

Action items and Strategy summary in the results

In the results (online and in documents), SMSFs are mostly covered. However please note that the action items may not list all activity in the SMSF and the strategy summary text may be missing some details, particularly for start of year values. However if text results are missing, you can check the detailed reports for more details.

Solve times may be slower

Applies to the following cases: Any case with an SMSF may be affected, although cases with fewer assets in the SMSF are less likely to be affected.

Background: You may need to wait up to 5 minutes for the results to be calculated. If it takes longer, see Tips for reducing solve times or Contact Optimo Financial. You can see the progress in the Solve events, if multiple iterations are required, it will take longer because Pathfinder is working harder.

Payment of expenses and insurance in the SMSF when the balance goes to zero

Applies to the following cases: If the SMSF goes to zero because the members withdraw all funds and the SMSF is used for paying insurance or other expenses (e.g. financial advice fees).

Background: If an SMSF balance goes to zero, insurance premiums and expenses will continue to be paid if it remains open, and Pathfinder will meet these expenses by depositing funds into the SMSF (or, if that isn't possible, it will report a constraint violation). The workaround is to set an exact year to close the SMSF and then solve the case again.

How to add an SMSF

Items which should be entered under an SMSF:

  • The following information should be added under an SMSF:
    • SMSF details (name, administration/set-up/audit fees)
    • SMSF Member details (accumulation phase and pension phase balances)
    • SMSF assets and liabilities

To add an existing SMSF:

  1. Go to the 
    Current situation step (top menu), then the Super & Trusts sub-step
    , then click the Add SMSF (BETA) button (on the left menu)
  2. Fill in the Member details, including each member's accumulation and pension phase balances, which can be entered on the main form of the SMSF
  3. Use the Add investment to SMSF button on the left menu to the details of existing investments and loans
  4. To add new assets to an existing SMSF:
    1. Go to the 
      Review super funds sub-step (under the Cash flows & Goals step on the top menu)
    2. Find your SMSF in the Existing SMSF section, and click the Add new investment to SMSF button

To add a new SMSF:

  1. Go to the 

    Review super funds sub-step (under the Cash flows & Goals step on the top menu)
    , then scroll to the end of the page and click the +Start a new SMSF (BETA) button

  2. Fill in Member details

  3. Use the Add new investment to SMSF button, to add proposed assets and loans

Modelling options for SMSFs

Start an SMSF
  • When you add a new SMSF, you can optionally choose the year to start the SMSF, and also enter the Establishment fee.
  • If there are existing super funds that you want to rollover into the SMSF, you can set a year to close the super funds, or choose minimum balance, and Pathfinder will rollover the funds to the SMSF (if that is the only available super fund left open).
Close an SMSF

You can set a year to close the SMSF if the balance is too low or there is another reason to close it.

In your results, if you realise that the SMSF's balance is very low and only being kept open to pay fees and expenses within the SMSF, then it is best to set a specific close date. 

When you choose to close an SMSF:

  • You still need to set instructions for the assets in the SMSF prior to the SMSF being closed at the 
    Review super funds sub-step (under the Cash flows & Goals step on the top menu)
  • Any instructions for assets in the SMSF that were set to be applied after the closure of the SMSF will be ignored
  • Any expense paid from the SMSF (e.g. insurance, planning fees), will no longer be paid once the SMSF is closed

To close the SMSF:

  • Go to to the 
    Review super funds sub-step (under the Cash flows & Goals step on the top menu)
    , and then find the SMSF.
  • On the SMSF options field, choose the 'Close SMSF' option
  • Then, set a year in the 'Close SMSF in year' field
SMSF fees and expenses

The following fees can be entered on the main SMSF form:

  • Establishment fee (for new SMSFs only)
  • Annual administration fee
  • Annual audit fee

If any other fees are being paid from the SMSF (e.g. financial adviser fees):

  1. Go to the Cash flows & Goals step, then the Cash flows sub-step
  2. Find the Expense section
  3. Add the expense, and in the Ownership field, put the SMSF

For more information, see the Expense in the help documentation.

General tips for setting options for assets inside super
  • The modelling assumes that assets are not segregated i.e. the proportional method is used for allocating assets
  • If you only have one investment in the SMSF (e.g. a managed fund), then just choose the option.
  • If you have chosen 'Leave alone' or set a minimum balance, this will prevent Pathfinder from accessing these funds for withdrawals/pensions from the SMSF (i.e. TRIS, account-based pension or lump sum withdrawal). If you don't want this, you can either change to a more flexible option (e.g. , Control by %) or change the option to a minimum balance, and then reduce the minimum balance in the year you would like to allow withdrawals (for more see How to increase or decrease a value in the series builder).
Keep assets in a ratio

'Shares/managed funds' and 'Cash' held in super have a Control by % field option, that allows you to fill in a % of total unallocated funds field. When you fill in this field, Pathfinder will keep the investment in the set ratio relative to all other assets that also have the % of total unallocated funds field filled in.

For example, if you set instructions as follows:

  • International shares: % of total unallocated funds = 60%
  • Australian shares: % of total unallocated funds = 40%
  • Existing balanced fund: Leave alone
  • Cash: Set minimum balance > Minimum balance = $20,000

Pathfinder will keep the International shares and Australian shares in a ratio of 60:40, regardless of what the balances are for the cash account and 'Existing balanced fund' because neither of these options have the 'Control by %' option chosen).

Work out when to set up an SMSF once a minimum super balance has been reached

If you would like to set up an SMSF once a minimum super balance has been reached:

  1. Run the scenario with their existing retail/industry super funds (and no SMSF)
  2. In the results, check their total super balances
    1. Go to the Detailed reports step
    2. On the left menu, choose Consolidated
    3. In this report, there will be a line called Superannuation (this will show the total super balances, if the case has a couple)
    4. Make a note of the year their Superannuation reaches your desired balance
  3. Copy the scenario (for more see How to make another scenario for comparison)
  4. In the copy of the scenario, at the 
    Review super funds sub-step (under the Cash flows & Goals step on the top menu)
    , choose what to do with the existing super super funds, such as:
    1. Close their existing super funds in the year you want to start the SMSF; or
    2. Choose 'Keep a minimum balance' if the funds need to be kept open (e.g. to pay insurances or to receive their super guarantee)
  5. Still at the Review super funds, add the SMSF, and choose to start it in the appropriate year
Voluntary super contributionsSee Retirement planning goal (super contributions and pensions).
Additional modelling options

Results for SMSF

See Superannuation and SMSF Results and Tax results (Individual and super).

Related items

Strategy Development Service (SDS) options

If the case includes complex analysis that you are not able to do in Pathfinder yourself, it may need to be submitted to the Optimo Financial SDS. Complexities include, but are not limited to:

In our strategy development service, we offer many options:

  • SMSFs with three or four members
  • SMSFs with loans for shars/managed funds
  • More advanced modelling as required