RICHTER SUPER FUND (SMSF)
On the 20th June 2022 we received advise via email from Lucie Novak (our accountant at the time) and a Daniel Collins (Collins Wealth Management) to start a SMSF in the name of Richter Super Fund.
Collins Wealth Management then supplied us with a Statement of Advise (SOA) containing how this would be set up.
See relevant page in the SOA (PAGE 4)
A bank account (Macquarie Bank) was opened by Collins Wealth Management in the name of RICHTER FAMILY HOLDINGS PTY LTD ATF RICHTER SUPER FUND
On the 22nd/23rd June 2022 we were instructed to deposit the following funds:
a) $127,500.00 (Concessional Contribution)
b) $110,000.00 (Non-Concessional Contribution)
We were then advised to deposit a further $330,000.00 after the 30th June 2022
See relevant page in the SOA (PAGE 6)
See bank statement
For reasons not required to be stated here we decided not to continue with Collins Wealth Management.
After many months trying to decide how to move forward with this and the funds earning interest in the bank we received a recommendation from a friend to contact Voyager Wealth Management – Sarah Nulty.
To our surprise Voyager Wealth Management’s advice was to close the Richter Super Fund (SMSF) and rollover the funds into a Praemium SuperSMA fund.
See relevant pages in the SOA
Tax returns for 2022 and 2023 were completed for Richter Super Fund (SMSF) and lodged by Financial Strategies Group (Paul Young) so the Richter Super Fund could be closed. A tax payment was made to the ATO from the fund in the amount of $19,638.95 at a rate of 15% for the concessional contribution of $127,500.00 deposited in June 2022.
See bank statement This statement shows ALL transactions until the account was closed on completion of rollover
Due to the unavailability of our regular accountant Tax Agent Services (Lucie Novak) and the urgent need to lodge our 2021/2022 tax return (Trust and Personal) we were advised to contact Irwin & Associates (Jesse Wang) which we did.
After receiving all information required Irwin & Associates completed and lodged the tax returns for Richter Family Trust and Robert & Narelle Richter.
Richter Family Trust
The Richter Family Trust and Robert Richter returns have been accessed and accepted by the ATO. Narelle Richter’s tax return has not!
The ATO have advised the following: “As a result of your excess non-concessional contributions, the associated earnings amount of $18,006.00 has been included in your assessable income. A non-refundable tax offset equal to 15% of your associated earnings amount has been applied.”
This amounts to an additional tax payment of approximately $3,530.00 extra tax. This amount is of no concern to me but the reasoning for it I believe is correct as stated next. I have paid this.
The issue of ‘Excess Concessional Contributions’.
We have been advised the initial concessional contribution deposit of $127,500.00 (back in June 2022) is incorrect. It should have been $102,500.00 which has created an additional $25,000.00 over the cap. Also, the tax on the correct figure of $102,500.00 would have been approximately $15,375.00 – a difference of approximately $4,263.00.
The ATO have advised we have three (3) Options.
See relevant document (1) from the ATO
See relevant document (2) from the ATO
While this has been happening regarding Narelle Richter’s tax return another issue has come to light – the issue of an incorrect rollover from the now closed Richter Super Fund (SMSF) to Praemium SuperSMA. Apparently when PraemiumSMA received the rollover funds they have treated it as a non-concessional contribution not a rollover. This has given the ATO incorrect information about the financial state of Narelle’s super account. Apparently somehow there’s a total of $860,000.00!! See document 1 below.
The SMSF Auditing Australia report also states the rollover was incorrectly done saying Super Stream was not used! See document 2 below. PAGE 4.
We have been advised by Sarah Nulty (Voyager Wealth Management) of the timeline of what has and is taking place regarding this problem. See document 3 below.
She has also given us a Statement of Advice in regard to the excess $25,000.00 concessional contribution. Statement of Advice
Jesse from Irwin & Associates has been very helpful trying to assist Narelle with this.
See document 4 & 5 below. These emails from Jesse relates to the ATO thinking there is $860,000.00 in the fund!
See relevant document 1
See relevant document 2
See relevant document 3
See relevant document 4
See relevant document 5
Rollover Benefit Statement
There have been attempts to rectify the issue of the excess $25,000.00 in the concessional contributions but as the total figure according to the ATO is $860,000.00 there is no room to move forward. The incorrect figure ($860,000.00) has to be fixed.
See relevant document