Smarter SMSF updates - 1 July 2024

Happy new financial year…

At this time each year, the Smarter SMSF team implements a range of changes across the platform, including order forms and generated documents.  Whilst it might not look like much from the outside, making these updates and changes ensure that templates remain up-to-date to allow you to have ready access to compliant documents in an ever-changing superannuation and tax laws environment.

To understand the changes that we have made to the order forms and documents on Smarter SMSF platform from 1 July 2024, we have create a list of items below, which also contain links to the deed changelog, revised sample documents and more.

Ordering documents

ASIC fees

From 1 July 2024, Smarter SMSF has revised its fees for company incorporations to reflect the ASIC fee indexation - you can read more about these changes in our related knowledge base article below - ASIC fees from 1 July 2024

Order forms

New SMSF:

• Changes to the structure of the Smarter SMSF deed and ancillary documents with a fund establishment have been made from 1 July 2024, including for QROPS - detail of these changes can be found within the SMSF deed changelog for the Smarter SMSF Deed (Governing Rules, Version 2024-07).
• You can view the revised sample document for the Fund Establishment within the knowledge base.

SP Company constitution

• You can view the revised sample document for a special purpose trustee company within the knowledge base.

SMSF Deed Update (Deed of Variation)

• Updated Governing Rules to version, 2024-07
• Updated PDS to version, 2024-07

LRBA:

• The following updates across the LRBA documents, including Bare Trust, LRB Agreement and Related Party Loan Facility Agreement:
  • Bare Trust:
    • Changing text from Custodial Trustee to Bare Trustee within the Deed and all supporting documents.
  • Limited Recourse Borrowing (LRB) Trust Agreement:
    • Changing text from Custodial Trustee to Bare Trustee across all relevant documents including agreements, acknowledgements, declarations and trustee minutes.
    • Making specific reference on the requirements to register a mortgage in respect to the acquired asset listed in the Schedule (replacing the previous reference to having ‘an encumbrance’).
    • Updated Schedules to include name of Bare Trustee & Bare Trust (previously Bare Trustee only).
    • Updating item (3) in the Member’s acknowledgement to add ‘by way of a mortgage’.
    • You can view the updated sample document of the Bare Trust & LRB Agreement within the knowledge base.
  • LRBA Loan Facility Agreement:
    • The order form has been updated for the LRBA safe harbour interest rate to the new rate of 9.35% for real property and 11.35% for listed shares/units for the 2024-25 year in accordance with the requirements set out in PCG 2016/5.
    • Insert new Clause 4 - Mortgage Security setting out how the Borrower grants a mortgage to the Lender over the Property, in accordance with the requirements of the PCG 2016/5 safe harbour.
    • Changing all text references from Custodial Trustee to Bare Trustee across the agreement and supporting documents.
    • You can view the updated sample document of the LRBA loan facility agreement within the knowledge base.

Pension Commencement / Lost Pension Deed:

• Pension PDS has been updated for 2024-25 year, which updates some text, including:
  • events-based reporting (section 4.3), 
  • removing various references to 1 July 2017 super reforms, 
  • adding references to disability super income streams under ‘Taxation of Member Benefits’ (section 5.1) and removing any references to preservation to age 60 tax rates due to the increase of preservation age to 60 years.
  • Schedule updates to reflect super tax rates & thresholds for 2024-25.

Other documents:

• Lost Trust Deed - has been updated to Governing Rules, version 2024-07.
• All legal documents have had disclaimers updated to reflect that all of these documents have been prepared by an Australian Legal Practitioner and are maintained by appointed lawyers for Smarter SMSF (currently Hill Legal).  Disclaimer also now incorporates the option to obtain legal advice utilising the Smarter Legal Review service.