FREQUENTLY ASKED QUESTIONS (FAQ)

What is SUPERCentral?
How is SUPERCentral supported?
How secure is the information stored in SUPERCentral website?
What are the benefits of using SUPERCentral?
Why choose a SUPERCentral SMSF Deed and Governing Rules?
Can I view the Governing Rules?
What is the difference between a Standard and Premium Conversion?
How often does SUPERCentral update its Rules?
When should an SMSF Deed be updated?
How do updates occur?
What happens if the fund chooses to opt-out of the SUPERCentral System?
Is there any loss of control by trustees when they use SUPERCentral?
Can SUPERCentral change the Rules to adversely alter the benefits? 
Does using the SUPERCentral Rules restrict investment choices?
Does the SUPERCentral Rules allow a SMSF to use gearing arrangements as part of its investment strategy?
What other services are provided by SUPERCentral?
Where do I go to have my questions answered in more depth?

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What is SUPERCentral?
SUPERCentral is an online deed creation and updating service for Self Managed Super Funds. The rules are regularly updated to reflect changes in the law and SMSF practice. It is a wholesale service offered to accountants, financial planners and other superannuation advisors for use by their clients.

How is SUPERCentral supported?
SUPERCentral is closely supported for all of its legal requirements by Townsends Business & Corporate Lawyers who bring 20 years of extensive experience in providing legal assistance to the superannuation, estate planning and financial planning industries.

Townsends Superannuation Division specialises in superannuation and all aspects of SMSFs, including compliance and regulatory issues, deed amendment and modification, fund reconstruction and winding up, pensions, investment structures, superannuation gearing, and investment strategy compliance. 

What are the benefits of using SUPERCentral?

• Updating occurs automatically and without paperwork. There is never a need to go back to your clients with documents to sign.
• The Governing Rules are regularly and continuously updated.
• SUPERCentral members and trustees can access the current and previous rules online at any time.
• The SUPERCentral system means time saved for the advisor, the client, the auditors and the ATO.
• SUPERCentral provides you with a "set and forget" arrangement. You never have to worry about deed updates again while the deed is on the SUPERCentral system.

Why choose a SUPERCentral SMSF Deed and Governing Rules?
SUPERCentral's Deed and Governing Rules are prepared by solicitors with extensive experience in the Superannuation field, Townsends Business & Corporate Lawyers. SUPERCentral documentation is always compliant with the law.

Can I view the Governing Rules?
Yes. Once you have a fund on SUPERCentral you can view the Rules on-line. If you want to preview the rules before joining then please call SUPERCentral on (02) 8296 6266 and our BDM's will be happy to arrange a copy for you.

What is the difference between a Standard and Premium Conversion?                                                                         Standard Conversion: Our standard service is suitable when the Advisor determines there is no need for a legal review of the current trust deed to ensure its provisions permit the conversion. 

Premium Conversion: Our premium service is used when there is a need for legal review to ensure that the current deed allows the upgrade to take place. The original deed (and any amending deeds), are reviewed by SUPERCentral's solicitors, Townsends Business & Corporate Lawyers to ensure the deed is suitable for conversion before upgrading to the SUPERCentral system. If the deed is unsuitable Townsends can also advise on the changes required to enable conversion to SUPERCentral.

How often does SUPERCentral update its Rules?
SUPERCentral Rules are updated as and when required by:

• Legislative changes
• Regulatory practices
• Case law developments
• Changes in the superannuation industry
• Changes in SMSF practice

When should an SMSF Deed be updated? 
If your deed does not have a suitable compliance clause and predates the Simplified Superannuation changes that came into effect from 1 July 2007 then the deed should be updated.

Successive Governments have also made many changes which affect SMSFs and this trend is continuing. Since 2000 there have been no fewer than eight major changes to self-managed superannuation requiring deed amendment.

As the result of significant amendments made to SUPERCentral's Governing Rules necessitated by such changes, SUPERCentral trustees can now:

• invest in installment warrants
• acquire investment properties on a geared basis (subject to certain requirements)
• more easily effect changes in trustees - to accommodate changing membership of the fund
• pay the new Simplified Super pensions
• convert existing allocated and "transition" pensions to the Simplified Super Pensions
• deal with excess contributions tax
• return contributions which have been paid by mistake
• deal with the move from the current super system to Simplified Super

Regular updates are vitally important to ensure the deed allows full access to all the rights available to SMSFs.

The failure to systematically and regularly review the fund's deed and ensure its currency and compliance may amount to professional negligence by the fund's accountant and a breach of duty by the trustee of the fund.

In addition, the fund can spend considerable sums having the deed reviewed by an expert lawyer and or accountant, or simply pay a small annual fee to get the benefit of all SUPERCentral's services including regular, systematic and care-free updates.

How do updates occur?
SUPERCentral will notify the registered Adviser by email informing of any proposed changes and provide information required to deal with client queries. Ten to fourteen days later all member funds are advised by email of the text of the change, the reason for the change and its likely impact.

All member funds that do not opt-out will then be on the latest version of the SUPERCentral Rules.

What happens if the fund chooses to opt-out of the SUPERCentral System? 
This happens rarely. After all, the changes are only to the benefit of the fund and its members. As a result all members to-date have chosen to stay on the SUPERCentral System. In the event that a fund in the future chooses to opt-out, its rules remain as the then current version. Any subsequent SUPERCentral amendments will not apply to that fund. The fund may re-apply to become a member at any time in the future provided it pays the annual fees for any absent years as well as the current year. 

Is there any loss of control by trustees when they use SUPERCentral?
No, nothing changes other than the rules that govern the operation of the fund. SUPERCentral is not an administration service, or an investment service as we do not have access to or control over the investments of the fund.

Can SUPERCentral change the Rules to adversely alter the benefits? 
No, the amendment power is controlled by trust law/SIS laws. The trustee/client may also choose to opt out of any amendment if it perceives it to be adverse to its interests. 

Does using the SUPERCentral Rules restrict investment choices?  
No. The fund can invest in shares, managed investment schemes, real property, personal property, collectibles, life policies, business real property, etc. However, the normal SIS rules will still apply - e.g. related party assets, excessive levels of in house assets, etc.

Does the SUPERCentral Rules allow a SMSF to use gearing arrangements as part of its investment strategy?
Yes. SUPERCentral's Governing Rules were updated in December 2007 to allow SMSF borrowing in accordance with the SIS Act. However, the fund's Investment Strategy may also need review and the fund needs to consider any changes to cash flow arising from such a change.

Advisors and Trustees should also be aware that lenders involved in SMSF gearing may require different types of security provisions to be included in the Governing Rules of the fund. Our lawyers Townsends Business & Corporate Lawyers are working to ensure that each lenders specific requirement are, as long as consistent with the SIS Act, accommodated within the SUPERCentral system.

If you or your client are considering or currently in the process of taking out a SMSF gearing loan, you may also like to discuss your legal requirements with SUPERCentral's Special Counsel, Michael Hallinan on (02) 8296 6266.

What other services are provided by SUPERCentral?
By participating in SUPERCentral, you and your clients will have online access to:

• Precedent super documents such as resolutions, PDSs, member and fund annual reports.
• Pro forma documents to download from our website for your immediate use and adaption without charge, such as Transition to Retirement Income Streams, Account Based Pensions and for recording the investment strategy of the fund. 
• The SUPERCentral Private Superannuation Fund Guide.
• SUPERCentral fund information.
• Access to SUPERCentral's platinum service of specialist information available only to users of SUPERCentral.

Where do I go to have my questions answered in more depth? 
Please email info@supercentral.com.au or call (02) 8296 6266 and ask for one of our BDM's David Jull or Jeff Curtis who will be most happy to assist you.