Relocation/super information

General Discussion / Chit Chat
1

Hi Guys, My husband & I are contemplating retiring overseas & we have been seeking advice regarding our SMSF, tax etc. It’s very confusing but it appears from the advice so far that we would be able to continue running our SMSF for 2 years whilst overseas - then we would need to transfer our smsf money into a (APRA) super fund. Obviously we don’t want to give up control of our super because we want to continue with our Sharewealth journey so we are wondering if any of the super funds that allow direct investment - offer direct shares in US market as well as ASX. Has anyone got any experience with this type of super? Thanks
Annabella

1 Like
2

Hi Annabella, Ask your accountant/adviser about a “Small APRA Fund”. This is where rather than you and your husband ( or a corporate trustee you are directors of…) acting as the SMSF trustees, you can appoint a professional trustee to effectively take your place. Below is the blurb from Google Gemini AI which can type far quicker than I can !! As always, please ensure you obtain competent professional advice before proceeding.

Regards,
Rob

Converting your Self-Managed Super Fund (SMSF) into a Small APRA Fund (SAF) is an excellent strategy if you are moving overseas, as it hands over the legal trustee obligations to a professional, APRA-licensed trustee company while allowing you to remain a member.

Because the fund’s trustee will now reside in Australia, it elegantly solves the strict “central management and control” residency issues that face expats running an SMSF.

The process of appointing a SAF trustee to your existing fund generally involves the following steps:

1. Research and Select an Approved SAF Trustee

Not all corporate trustees handle SAFs, and their investment menus vary. Because you want to maintain control over your investment strategy, you must first find a licensed APRA trustee company that supports the specific investment platforms or brokers you use. You will need to apply to them to see if they will accept your fund.

2. Review and Amend the Trust Deed

Your existing SMSF trust deed dictates how trustees can be removed and appointed.

  • A legal professional will need to draft a deed of amendment.
  • This formally removes you and your husband as individual trustees (or as directors of your corporate trustee company) and appoints the approved APRA corporate trustee in your place.

3. Change Regulators with the ATO

An SMSF is regulated by the Australian Taxation Office (ATO), while a SAF is regulated by the Australian Prudential Regulation Authority (APRA).

  • Once the new trustee is appointed, the fund officially changes status.
  • You must notify the ATO within 21 days of the change by lodging the appropriate structure change forms.
  • Note: For the financial year in which you switch, you will have to lodge an annual return with both the ATO and APRA. After that, it becomes purely an APRA-regulated fund.

4. Update Asset Ownership and Bank Accounts

Because the legal ownership of the fund’s assets changes from you to the new professional trustee, you will need to update the title on all fund investments.

  • This includes bank accounts, share trading accounts, and property titles.
  • The Good News: Because the beneficial ownership remains with the fund itself (for the members), transitioning an SMSF to a SAF typically does not trigger a Capital Gains Tax (CGT) event, though you should verify this with your accountant against your specific asset mix.

5. Finalize Company Matters (If Applicable)

If your SMSF currently operates under a corporate trustee structure (a proprietary company where you are directors), you will no longer need that company once the SAF trustee takes over. You will eventually need to look into formally deregistering that corporate entity with ASIC to avoid ongoing annual review fees.

What to Keep in Mind

While a SAF takes the legal compliance and paperwork weight off your shoulders while you are poolside overseas, the trustee has the final veto power over investments. They must ensure the investments comply with superannuation laws. Before signing up, you’ll want to thoroughly review their approved product list (APL) to ensure it accommodates your trading style.

3

Hi Rob Thanks for this information I will persue it with our accountant - Although he might not know much about it since he didn’t recomend it when I broached the subject with him😳

4

Hi Annabella, The other option you mentioned was to potentially transfer to one of the large public offer funds. I know HOSTPlus will allow you to select certain ETF’s and shares from a limited specified menu, but I would be surprised if they allowed you to trade in and out of stock positions “Sharewealth Systems” style, but I could be wrong, and probably are !! You could enquire however. Again, here is the blurb from Google Gemini AI…

Regards,
Rob

The Hostplus Choiceplus option is a direct investment platform (DIO) designed for superannuation members who want greater, self-managed control over their portfolio without setting up a full Self-Managed Super Fund (SMSF). It bridges the gap between traditional industry super and hands-on trading.

The key structural details, limitations, and costs of the Choiceplus platform include:

1. Investment Restrictions & Balance Rules

To ensure diversification and risk management, Hostplus imposes strict rules on how much money can be moved into the platform:

  • The 80% Cap: You are permitted to invest a maximum of 80% of your total super balance within Choiceplus.
  • The 20% Retainer: The remaining 20% of your super balance must remain invested in Hostplus’s standard pre-mixed or sector-specific managed options (with a strict minimum baseline of $2,000 kept in these options).
  • Single Exposure Limits: You cannot put all your Choiceplus money into one asset. Hostplus enforces strict holding limits—typically capping individual blue-chip shares or broad-market Exchange Traded Funds (ETFs) at a maximum of 50% of your total Choiceplus portfolio, while more speculative or sector-specific ETFs are capped at 20%.

2. Available Asset Menus (ASX vs. US Markets)

Choiceplus does not offer a completely open market broker experience. It restricts your trading universe to specific approved lists:

  • Australian Shares: You can directly buy and sell individual shares, but your choice is limited strictly to companies listed on the S&P/ASX 300 Index , alongside selected Listed Investment Companies (LICs).
  • International & US Markets: You cannot buy individual international stocks (such as direct shares in Tesla, Apple, or Nvidia). To get exposure to the US or global markets, you must use ASX-listed ETFs that track those international indexes (for example, the iShares S&P 500 ETF IVV or the Vanguard US Total Market ETF VTS).
  • Term Deposits: The platform also offers access to fixed-term deposits if you want to lock in a cash rate.

3. Account Eligibility

To open and maintain a Choiceplus account, a member must meet the following baseline requirements:

  • Have a total Hostplus super or pension balance of at least $10,000.
  • Open and maintain a minimum of $200 in a dedicated Choiceplus transaction cash account to facilitate trades and cover system fees.
  • Note that Choiceplus is not available for Transition to Retirement (TTR) accounts.

4. Fee Structure and Brokerage

Operating a Choiceplus account layers additional expenses on top of standard Hostplus administration fees:

  • Platform Fee: An additional flat portfolio administration fee of $168.00 per annum is deducted directly from your Choiceplus transaction account.
  • Cash Account Fee: A small transaction account fee of 0.10% applies to your liquid cash balance within the platform.
  • Brokerage Costs: Brokerage fees apply to every transaction whenever you buy or sell shares or ETFs.

Because of the transaction costs, cash transfer times between your standard super balance and the trading platform, and strict single-asset limits, Choiceplus is generally built to favor long-term, buy-and-hold index or large-cap investment strategies rather than high-frequency active day trading.

5

Hi Annabella, I thought I’d just add a User’s experience with ChoicePlus as part of HostPlus. Rob’s Google Gemini AI summary is very good. My experience has been (and these are my personal notes, I am not an accountant or financial advisor):
1 it does work, and it is part of my Super Fund, so you get those benefits
2 I started with AUS stocks (using SPA3 Investor), and the only problem is that they don’t have MOC orders. But given that I am in Melbourne, I set an alarm for 3pm and simply place a ‘close-to’ MOC order when required
3 Net costs per trade are $12.99. Then there is a Monthly Admin Fee which seems to vary slightly, approx $14 pm.
4 They do pay interest on Cash Balances - I don’t have the % rate to hand
5 I trade on my phone, it is very easy
6 their reporting is OK, although I prefer to track through PM in BC.

Note that I couldn’t find any way to trade US (SPA3 Income), so I’ve had to start a small fund outside of Super.

6

HI Mark Thanks for that feedback re ChoicePLus HostPLus - sounds like it might fit the bill OK - do you know if you can also trade US stocks or ETF’s? Thanks Annabella

7

No Annabella, only ASX300 on ChoicePlus - although Rob’s AI summary in this Thread says there are a few other limited options. No opportunity for the US at the moment