Industry superannuation fund, CareSuper has looked to attract people exiting Self Managed Superannuation Funds (SMSFs) by making it easier and cheaper for them to complete the process via a partnership with accounting and financial advisory group Crowe Horwath.
The two entities announced the partnership citing Australian Taxation Office (ATO) data indicating the winding up SMSFs was becoming an increasing trend with the ATO releasing figures stating that in 2012/2013 – 7653 people shut down their SMSF.
CareSuper chief executive, Julie Lander claimed running an SMSF could be a costly and time-consuming exercise that people had not understood prior to setting them up, while closing them could prove a labor-intensive and technical process.
"Lots of people have set up an SMSF thinking that they will relish the control they have over their investments, but they have reported to us that they were not aware of the time associated with compliance requirements and the ongoing costs at the time of establishing the SMSF," he said.
"The procedure of closing an SMSF is very drawn out, you have to notify the ATO, liquidate or transfer all the assets of the fund, arrange a final audit of your fund, lodge your SMSF annual return and finalise any outstanding tax liabilities," Lander said. "Our new partnership with Crowe Horwath means this process will be seamless for CareSuper members and handled in one simple step."
The partnership between CareSuper and Crowe Horwath is understood to be the first commercial arrangement of its kind.
