Tranzact Super was one of the first SMSF administrators to introduce daily data processing and compliance services. This process has the advantage of enabling a proactive approach by the funds decision makers but the disadvantage of requiring an ongoing effort by advisers and trustees in the provision of the information needed. Though this process is superior to yearly administration it has arguable advantages for a fund that has an investment wrap in place, no unusual investments or processes and no need to access member balances or componentry during the year. As a large number of funds satisfy this criteria we have decided to offer a once-a-year “Shoe Box” service in addition to our daily service.

The only reason we have introduced this service is to reduce the administration burden on advisers and trustees. Our recommended service will always be our daily service.

Information under the “Shoe Box” option will only be sought at year end. Access to web reports will not be available. In all other respects the current administration agreement and services will not be altered. The fee for this service will be the same as for the daily service except that the monthly fee required will be estimated at the commencement of the year. An adjustment will occur when the end of year financials have been completed.

How will the monthly fee be estimated.

• For funds which are on the Tranzact Super system presently we will estimate the monthly fee as being the same as that calculated for last month. This method will also be used for setting the estimate for funds in their second or subsequent year of administration.

• For existing funds introduced to Tranzact Super the estimate will be based on the number of investments that existed at the end of the last audited accounts.

• For brand new funds we will charge the minimum fee for a fund with one investment, $132/mth. This may be increased, after consultation, if the investment activity of the fund indicates that the monthly estimate is far too low.

The balance of the fee, based on the actual number of investments, at the end of each month, will be calculated at the end of the year when the accounts are completed. It is expected that the estimate will be close to or less than the actual fee required. If there is an expectation that the estimate is excessive (this may occur where a major change has been made to the fund’s investments) then a request can be made to alter the amount of the estimated fee.

In the event that interim processing is required, for a mid-year member balance for example, then the result will only be available after all necessary data has been obtained and processed. This will mean a delay will be experienced before an answer can be provided. Funds which do not submit BAS yearly will not be eligible for this service unless they are invested in “Wraps”.

Should you wish to alter a fund’s administration arrangements to this system please notify us as soon as possible.