Category: Industry Update

Questions and Answers on questions from the webinar on 26 February 2025.

On the 26th February 2024 we hosted our first Ask Graeme Q&A webinar with SMSF industry expert Graeme Colley. Graeme fielded questions on Div296, death benefits, and many other topics. To view the recording or read the Q&A, see below.

1. Div 296 – should my clients be worried?

The draft legislation for the introduction of Division 296 in Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 is currently in the Senate. The current position is that:

  • The Bills were listed for debate on 6 and 13 February but were withdrawn.
  • It is unlikely that the bills will be debated prior to the Federal election given that the last sitting day of the parliament before the proposed sitting days commencing on 25 March.
  • The outcome of the election will provide a guide on the policies of the new government and whether the Division 296 bills will be reintroduced into the parliament.

2. What do you think about “methodology will be used” to calculate Div 296 tax of the legislation goes ahead.


The process used to calculate Division 296 tax consists of three stages. These are the calculation of:

Stage 1: the member’s adjusted Total Superannuation Balance and determining ‘superannuation earnings’ which is the change in the adjusted balance during the relevant year of income,

Stage 2: the proportion of the member’s ‘superannuation earnings’ which is above $3 million, and

Stage 3: the tax liability which is 15% of the taxable ‘superannuation earnings.

The payment of the tax liability can be made by the member or if the member determines, the payment can be made by the superannuation fund.

3. Is a re-contribution strategy available for only 60 – 65-year-olds or up until age 75 ?

The short answer is that providing a person meets a condition of release of retirement which has a ‘nil’ cashing restriction they can withdraw their superannuation if they wish without any restriction. It is possible for them to make non-concessional contributions prior to meeting the age 75 conditions which should be limited to their non-concessional contributions cap. Non-concessional contributions can be made up to 28 days in the month after the person has reached age 75.

A re-contribution strategy can be implemented where a member:

  • has a non-preserved benefit which can be paid from the fund as they have met a condition of release with a ‘nil’ cashing restriction, and
  • part or all of the amount received is re-contributed to superannuation as a non-concessional contribution (NCC).

The main aim of the re-contribution strategy is to reduce the taxable proportion of the member’s superannuation benefit so that where the member’s death benefit is paid to a non-dependant for tax purposes the tax payable on the benefit is reduced or eliminated. A non-dependant for tax purposes is generally an adult child of the deceased.

A condition of release of retirement which has a ‘nil’ cashing restriction occurs in the following situations:

  • the person has reached their preservation age (currently age 60) and has ceased any gainful employment in which they were engaged between age 60 and 65,
  • the person has retired from all gainful employment between age 60 and 65,
  • the person has reached age 65.

Once a person has reached preservation age the condition of release is met where they have ceased any gainful employment or self-employment. An example could include the person having a full- time job and works in a casual job on the weekends. If they cease either the full-time or casual job after reaching preservation age, they are considered retired for superannuation purposes. Once the condition of release, it is up to the member whether they wish to have their superannuation benefits paid as a lump sum, pension or a combination.

Whether a re-contribution strategy is worthwhile depends on a number of factors which depend on the taxable proportion of the member’s superannuation benefit. If the benefit consists of a
significant taxable proportion then it may be worthwhile to use the re-contribution strategy. However, where the member’s superannuation benefit consists of a significant tax-free component then the benefit of using the re-contribution strategy may be limited.

Case Study


Sophia ceases a job at age 65 with super of $1.2 million which has a taxable component of $880,000 (80%) and a tax-free component of $360,000 (20%).

She decides to withdraw a lump sum of $360,000 which will consist of a taxable component of $288,000 ($360,000 x 80%) and a tax-free component of $72,000 ($360,000 x 20%) as its tax-free
component. As Sophia is older than 60 the whole lump sum she receives is tax free.

In addition, Sophia decides to commence an account-based pension with the $880,000 balance that remains in the fund. The taxable proportion of that pension is 80% and the tax-free proportion is
20%. However, as Sophia is over 60 years old the pension she receives will be tax free.

Sophia uses the recontribution strategy with the lump sum she has withdrawn and makes a non- concessional contribution of $360,000 which is used to commence a 2 nd account-based pension
which will have a 100% tax free component

If Sophia was to die and non-dependants became entitled to her superannuation benefit at age 65 they would be liable for $144,000 income tax (excluding Medicare). The reason is that tax of 15% (subject to the recipient’s marginal tax rate) is payable on the taxable component of the benefit ($1.2 million x 80% x 15%)

If Sophia was to die after she commenced the 2 nd account-based pension then her non-dependants would be liable to pay $105,600 (excluding Medicare). The reason is that tax of 15% is payable on the taxable component of the 1 st account-based pension ($880,000 x 80% x 15%) and no tax is payable on the proceeds of the 2 nd account-based pension as it has a 100% tax free component.

4. Is better to have a reversionary pension or revert to a Death Benefit Nomination?

Whether it is better to have a reversionary pension or a death benefit nomination really depends on the person’s circumstances. Here are some of the reasons that it may be better to have a reversionary pension over a death benefit nomination and vice versa.

Automatic reversion nomination

  • Trustee bound to pay pension to reversioner. The trustee has an obligation to pay the pension to the nominated beneficiary.
  • No trustee discretion. The trustee has no alternative to the instruction to pay the reversionary pension to the beneficiary.
  • Less paperwork. A binding death benefit nomination may require a certain format and words to ensure the benefit is paid as desired by the deceased.
  • Pension of deceased continues to reversioner. The pension payable to the member will be paid automatically to the reversioner on their death.
  • Transfer Balance Cap advantages in the first year after death. One benefit of a reversionary pension is that the Transfer Balance Cap of the reversioner does not take into account the
    value of the reversionary pension until 12 months after the death of the original pensioner.
  • May have DVA/Centrelink implications.

Binding death benefit nomination

  • Helpful if more than one beneficiary to be nominated. It is possible to nominate the surviving spouse and other dependants for superannuation purposes as part of the binding
    death benefit nomination.
  • Flexibility for dependants on how the benefit will be received. The nomination may determine that lump sums be paid to some nominated beneficiaries and pensions to other
    nominated beneficiaries.
  • May lead to dispute depending on wording of the nomination. The courts and tribunals are littered with disputes concerning the payment of superannuation benefits of a deceased
    member.
  • Trust deed may have specific instructions on how the nomination is to be made.

5. Market linked pensions – a good idea to cash them in for an account-based pension?


On 7 December 2024 regulations were made that allow ‘defined benefit pensions’ including account- based pensions to be commuted (converted) to a member’s accumulation phase account within a 5- year amnesty period.

The amnesty requires:

  • Defined benefit pensions including account-based pensions to be commuted in full. Partial commutation of the pensions is not available,
  • The commutations take place within 5 years of the regulations being made,
  • That the commuted pensions may pay a lump sum to the pensioner, commence an account- based pension or remain in the member’s accumulation account as they choose,
  • Any amounts used to commence an account-based pension are required to be limited, along with any other of the member’s pensions to be restricted to the member’s Transfer Balance
    Cap.

It may be useful to commute a market linked pension where:

  • It is no longer used to access DVA/Centrelink pension concessions
  • The pension was commenced for RBL purposes
  • The pensioner wishes to get greater access to payments from the pension which is available

    • with an account-based pension

  • Access is required to the larger payments for estate planning purposes

There are a number of factors to be considered before the market linked pension is commuted:

  • Age and health of the pensioner or reversionary pensioner
  • Balance of market linked pension
  • Rollover to a new market linked pension
  • Remaining period of market linked pension
  • Impact of the person’s Transfer Balance Cap
  • Estate planning strategies

Case Study

George retired at age 60 in 2004 and commenced a market-linked income stream which is reversionary to his spouse and will be payable for another 10 years until 2035.

The current balance of the market linked income stream is $1 million and the pension factor is 8.32. erefore, the pension payable is $120,200 and is tax free because it is under the defined benefit
income cap of $118,250.

If George commutes his market linked income stream and uses all of it to commence an account- based pension it will be subject to his Transfer Balance Cap of $1.6 million less the amount of the
commuted market linked pension payments he has received since 1 July 2017.

If the total of the pension payments received totals $500,000 then the Transfer Balance Cap will be $1.6 million less $500,000 or $1.1 million.

The balance of George’s market linked income stream is $1 million at the time of commencing the account-based pension he will not be in excess of his adjusted Transfer Balance Cap.

The minimum account-based pension George can receive at age 80 is $ 1 million x 7% which is $70,000.

6. Treatment of prior year capital losses when pension phase funds commuted back into accumulation on the death of a member where no reversionary pension has been set up is it possible to set one up and if so how?

There are a number of issues which need to be considered with this question as they may not be possible under the superannuation and tax legislation. They are:

  • It is not possible to commute a death benefit pension in to accumulation phase for a death benefit beneficiary unless it will be immediately paid out as a lump sum or rolled over to
    another superannuation fund to commence a death benefit pension or immediately paid out by the receiving fund as a lump sum.
  • Once a person has died it is not possible to set up a reversionary pension retrospectively. The reason is that the pensioner’s nomination of the reversionary is an agreement made
    between the pensioner and trustee of the fund when the pensioner is alive and subject to the rules of the trust deed.
  • If a person is in receipt of a non-reversionary pension and dies, the residual capital value of the pension will remain as part of the fund’s exempt current pension income until a decision is made about the distribution of the pension’s capital value.

7. How to speed up the 3 or more ATO / Regulatory SMSF set up checks, when they don’t work?

It is not possible to comment on this as the details of the various circumstances are not available. However, it the delay in the approval of a fund may be due to:

  • Data in the Australian Business Number (ABN) Application will not verify
  • The SMSF Name selected is not sufficiently unique
  • The lodgement and payment of the person’s income and other taxes and related entities tax and other obligations are not up to date
  • The establishment documents include clerical errors or are incomplete
  • The establishment documents are not executed and dated correctly
  • The ATO due diligence procedures concerning illegal access schemes being used bySMSFs

8. Any idea if the $1.6M disregarded small fund assets will be indexed to 1.9M to align with transfer balance cap?

The Explanatory Memorandum to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 clearly states that an individual’s transfer balance cap will be indexed in line with changes to the Consumer Price Index. However, the $1.6 million amount used for disregarded small fund assets will not be indexed.

Here is an extract from the relevant part of the Explanatory Memorandum:

3.17 An individual’s transfer balance cap is $1.6 million for the 2017-18 financial year and is subject to proportional indexation on an annual basis in $100,000 increments in line with the Consumer Price Index (CPI).

10.53 It will not be necessary for a person with an interest in the small fund to be receiving an income stream from that fund. A small fund will be excluded from using
the segregated assets method where a member of the fund, with a total superannuation balance that exceeds $1.6 million, is a retirement phase recipient of an income stream from another superannuation income stream provider. 

Plus, you only have 2 goes at paying the benefit….is there flexibility there?? (think this relates to death benefit)

9. You only have 2 goes at paying the benefit….is there flexibility there?? (think this relates to
death benefit)

The provisions of regulation 6.21 of the SIS Regulations is a compulsory cashing requirement that applies only where a death benefit is payable. The regulation says that ‘a member’s
benefits in a regulated superannuation fund must be cashed as soon as practicable after the member dies’ for each person to whom benefits are paid as:

  • a single lump sum, or
  • an interim lump sum and a final lump sum.

Where benefits are paid in other circumstances the legislation does not place restrictions on the number of lump sums that may be paid.

There are a number of situations on the death of a member, where it may be impossible to
comply with this requirement. An example would be when a death benefit is paid by the
transfer of shares. It is understood that each parcel of shares constitutes a lump sum and
may not meet the compulsory lump sum payment requirements of regulation 6.21.

In a scenario where the sole member of a SMSF (Corporate Trustee structure with deceased member and non-dependent adult child as directors) passes away and the death benefits are to be paid out to the deceased’s non-dependent adult child (age 60+), I assume we are meant to calculate the PAYG Withholding first before arranging for the death benefits to be paid out i.e. Gross Payment (Deceased member’s balance in SMSF) LESS PAYG Withholding = Net Amount to be paid out. However, how would the PAYG Withholding aspect of this scenario work if the beneficiary is opting to receive a portion of the death benefits as an in-specie transfer of listed shares ($100k market value) into their personal name?

If a SDB paid outside the 6 months.. mainly due to awaiting tax statements we won’ t be claiming ECPI subsequent to the DOD FY. any issues?

10. In a scenario where the sole member of a SMSF (Corporate Trustee structure with deceased member and non-dependent adult child as directors) passes away and the death benefits are to be paid out to the deceased’s non-dependent adult child (age 60+), I assume we are meant to calculate the PAYG Withholding first before arranging for the death benefits to be paid out i.e. Gross Payment (Deceased member's balance in SMSF) LESS PAYG Withholding = Net Amount to be paid out. However, how would the PAYG Withholding aspect of this scenario work if the beneficiary is opting to receive a portion of the death benefits as an in-specie transfer of listed shares ($100k market value) into their personal name?

In circumstances where tax is payable to a non-dependant child as a lump sum, PAYG is required to be deducted from the lump sum payable. The amount of tax payable is calculated on the taxable component of the death benefit lump sum. If the death benefit is made as an in-specie transfer of assets the value of the shares transferred in is included in the lump sum and subject to tax on the taxable component. The fund is required to pay PAYG based on the value of the assets transferred in specie and any cash included in the death benefit lump sum.

Any examples of when the super fund holds a large value of cryptocurrency and they have lost the wallet access details upon death of a member? how long could this take?

11. Any examples of when the super fund holds a large value of cryptocurrency and they have lost the wallet access details upon death of a member? how long could this take?

In some cases, this issue may never be solved. However, as the benefit is required to be paid as soon as practicable, locating the wallet may take a long time. Providing the trustees are
making reasonable attempts to locate the wallet then it may be regarded as falling within the ‘soon as practicable’ requirement.

Single member fund with property – takes 2 years to sell down all the assets – still ECPI until benefits paid to the estate?

12. Single member fund with property – takes 2 years to sell down all the assets – still ECPI until benefits paid to the estate?

Whether the assets and relevant income would come within the fund’s ECPI, depends on the circumstances of the case. There are a number of situations where it could occur, for example:

  • where a reversionary pension is paid to a death benefits dependant,
  • if a non-reversionary pension was paid to the deceased.

The residual amount of the non-reversionary pension will remain in the fund’s exempt pension assets until the beneficiary makes a decision whether they should receive a death benefit such as a lump sum or death benefit pension.

If the death benefit pension has been selected then the assets supporting the death benefit pension will remain as part of the fund’s exempt current pension income.

Information from Graeme Colley and Cloudoffis is general in nature. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided.

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The Cloudoffis Bulletin - End of Year Edition

As the calendar flips closer to the end of the year and the silly season sneaks up faster than ever, we want to pause and reflect on the incredible year that’s been. Above all, we want to thank the amazing Cloudoffis community for your unwavering support and enthusiasm, making our roles so fulfilling.

Initially, we planned to write all about this year’s highlights, but as we started, we realised one newsletter just couldn’t capture everything. So instead, we’ve created a short clip featuring the Cloudoffis team sharing their top moments from 2024.

Before we sign off for the year, if you missed the ‘Ask Graeme’ webinar, don’t worry! You can catch the full recording and browse through the Q&A from the session here.

Given the fantastic response to this year’s event, we’re excited to announce that plans are already underway for next year’s first ‘Ask Graeme’ webinar. You can register for the February webinar here.

Here’s to a joyful end of 2024 and an exciting year ahead.

Warm wishes
The Cloudoffis Team

Team reflections of 2024

We asked our team what they loved most about working at Cloudoffis in 2024 and their favourite feature launched this year. Here’s what they had to share!

Which feature made the biggest impact for you this year? Let us know – we’d love to hear from you!







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How Tax Sorted Transformed Paul Money's Work Paper Processes

Company Overview

Paul Money is an accounting firm with two offices in Collingwood and Greensborough, led by Sarah Molinaro, a senior manager overseeing business services and SMSF clients.

Sarah and her team at Paul Money have embraced Tax Sorted as a vital tool for managing work papers in a consistent and efficient manner. Tax Sorted has streamlined their document management processes, improved collaboration between offices, and provided a user-friendly platform that the entire team can easily adopt.

Challenges Before Implementing Tax Sorted

Before adopting Tax Sorted, Paul Money relied heavily on Excel for preparing workpapers. While functional, Excel had several limitations:

  • Manual Processes: The firm had to double-handle tasks, creating inefficiencies and inconsistencies across the two offices.
  • Clunky Alternatives: Previous attempts to adopt web-based solutions were unsuccessful due to difficult setup, poor user experience, and lack of automation.
  • Document Overload: Files were scattered between Excel and FYI Docs, making document retrieval cumbersome, especially for review processes.

Why Tax Sorted?

The team sought a cloud-based, automated solution to streamline their processes and eliminate the inefficiencies of Excel. Having already used Cloudoffis for SMSF workpapers, they were excited by the prospect of a Cloudoffis solution for their tax team and wanted to bring similar benefits to their business services.

Key Benefits of Implementing Tax Sorted

  1. Consistency and Efficiency: With Tax Sorted, all workpapers are now cloud-based, improving accessibility and collaboration across both offices. This has allowed the firm to create consistent templates and workflows, which reduces the time spent on preparing and reviewing documents.
  2. Streamlined Document Management: Rather than clogging up FYI Docs with numerous files, Tax Sorted allows Paul Money to keep everything in one system, making it easier to retrieve, review, and store documents.
  3. User-Friendly Interface: Sarah highlighted how easy it is for her team, especially new graduates, to use Tax Sorted. Unlike other work paper systems her team had trialed, Tax Sorted was intuitive and quick to set up, allowing the firm to create templates and start using the software immediately.
  4. Automation and Integration: Tax Sorted imports the trial balance, profit and loss, and balance sheet data directly into the work papers. This integration with Xero saves time and reduces errors, as all relevant documents are automatically linked and available in one place.
  5. Potential for Time and Headache Savings: Although still in the early stages of adoption, Sarah believes that Tax Sorted will save significant time and reduce the headaches of managing work papers across two offices. The system’s ability to carry forward documents year-to-year, particularly for permanent files like capital gains schedules, will streamline future work.


Paul-money



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The Cloudoffis Bulletin
October Edition

Welcome to the October edition of the Cloudoffis Bulletin.

It seems the Cloudoffis team doesn’t have an off switch, as October was another huge month. Between launching Tax Sorted, hosting intimate customer breakfasts and introducing new Auditomation features, we’re always focused on driving innovation and delivering better solutions for the Tax and SMSF industry.

So grab your coffee, settle in for the read, and don’t forget to register for our ‘Ask Graeme’ webinar below.

Sydney breakfast event: Attracting Tomorrow’s Top SMSF Talent – The Tech Advantage

At our first Cloudoffis event of the year, SMSF industry leaders gathered to tackle a pressing challenge: attracting new talent to the accounting profession, especially in SMSF auditing. With over half of SMSF auditors set to retire in the next 5-10 years, discussions quickly moved into solution mode.

A big thank you to Graeme Colley, Marjon Muizer, and Jacob Kewley for leading such an inspiring discussion on the future of SMSF firms across all tier sizes. The energy in the room was incredible, with peers sharing ideas, insights, and support.

Don’t miss out on similar events across our capital cities next year! In the meantime, check out Graeme’s reflections on our Sydney event.

Read more

Register for our upcoming ‘Ask Graeme’ webinar

Last month, we announced our partnership with Graeme Colley, and the feedback has been overwhelmingly positive due to Graeme’s influence on many SMSF careers. That’s why we’re pleased to invite you to a Q&A session with Graeme, where he’ll be available to answer your burning SMSF questions.

When: Wednesday 4th December
Time: 10-10.45am AEDT

Register today

Customer spotlight

SMSF Auditomation: New ‘Organise Documents’ features

We recently released enhancements to the organise documents features, streamlining document management and saving you up to 30 minutes admin time across each workpaper. Enjoy:

  • Easy document switching: Move between documents seamlessly without closing and reopening them, reducing unnecessary steps.
  • Direct tagging in DMS: Tag documents directly from the Document Management System (DMS) without navigating to financial line items.
  • Document filters & icons: Filter documents into categories (Unsorted, Tagged, Permanent) and use icons to quickly identify document types.
  • Efficient tagging & multiple bookmarks: Tag documents more efficiently and add multiple bookmarks for various items in one go.
  • Checklist & financials integration: View multiple line items and checklists within an open document, improving clarity and workflow efficiency.

Access our step-by-step guide and demo video to help you get started.

Top Tip:
New features and updates can sometimes lead to unexpected behaviour, yet clearing cache and cookies can to get back on track in no time. View our how-to guide.

Tax Sorted is now live!

We’re excited to showcase the latest addition to the Cloudoffis family: Tax Sorted.

The past few weeks have been exciting, revealing to Tax Accountants across Australia how Tax Sorted is able to turn routine tasks into valuable time spent with clients.

With features such as our automated excel integration, one-click document imports from Xero, a secure platform with access levels that align with Xero and even the option to customise your Tax Sorted portal to a colour that suits your mood, Tax Sorted has truly impressed our clients with its capabilities and vision.

There’s even more to explore, so get your tax team to book a demo today.

Book a demo Find out more

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Attracting Tomorrow's Top SMSF Talent: The Tech Advantage

Co-Authored with Graeme Colley

In a recent panel held by Cloudoffis, Graeme Colley, Marjon Muizer, and Jacob Kewley discussed critical trends shaping the SMSF audit industry. Top of mind for the panelists and attendees is the shrinking auditor workforce, the role of technology in driving industry evolution, and how to equip the next generation with the essential skills for success. Read on for more insights on these topics.

The difficulties in attracting staff to the accounting profession and particularly auditing SMSFs is concerning. More than half the registered SMSF auditors are over 60 years old and expected to retire in the next 5 to 10 years. We continue to see sustained and significant increases in the number of SMSFs being established. Both of these factors are expected to have far-reaching impacts on the industry.

The regulators indicate that around 2/3rds of SMSF auditors each complete no more than 50 fund audits annually with most auditing less than 5 funds. At the top end, around 10% of auditors each undertake more than 250 fund audits which is about 70% of all the funds being audited. The trend is that there is a decline in the total number of SMSF auditors and a move towards a greater number of funds being audited by the top end. Who is going to tackle the growing number of SMSF funds when the number of industry specialists is declining?

 

The opportunity

The challenge facing the auditing and accounting professions is attracting talent who are willing to learn the essential skills in operating and developing an SMSF audit business. These include understanding the technical issues, compliance and adapting to changes in technology.  Whether there are sufficient newly qualified accountants interested in auditing SMSFs who are willing to pursue further study to become registered may be the hurdle. Current audit education on SMSFs is limited.

Anyone who has a long-term view in shaping the future of the industry should be preparing for the expected changes in demographics and the skills required to grow a successful SMSF audit business.

Cloudoffis are well positioned to help auditors address these challenges by offering solutions that tackle both the talent attraction issue and the evolving technological demands of the profession.

By automating time-consuming tasks, Cloudoffis’ practice tools enhance efficiency and appeal to younger auditors, enabling new employees to quickly adopt processes, integrate, and start adding commercial value to the business. Technology simplifies onboarding and allows staff to spend less time on administrative duties and more on revenue-generating activities.

Additionally, by providing tools that simplify compliance and technical issues, Cloudoffis reduces the complexity of audits, allowing firms to manage more funds with fewer resources.

At the other end of the business journey, for retiring business owners, embracing technology before selling their practice can significantly boost its appeal and value. Adopting software like Cloudoffis not only makes practices more attractive to younger accountants and auditors, who are generally more comfortable with technology, but also prepares businesses for future regulatory changes, making them a more secure investment for potential buyers.

A tech-savvy practice also streamlines the transition of ownership, making acquisitions smoother and reducing post-purchase problems. New owners will appreciate not having to overhaul outdated systems, allowing them to focus on growth and innovation. By integrating modern technology, retiring auditors can enhance their practice’s marketability and ensure a seamless handover.

In a rapidly changing landscape, adopting technology like Cloudoffis empowers both new auditors and those nearing retirement to thrive, securing the future of their practices and attracting the next generation of talent.

 

 

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The Cloudoffis Bulletin:
August Edition

Welcome to this month’s Cloudoffis Bulletin!

As we transition into the first quarter of the year, the momentum is building, and so are our updates. We’ve packed this edition with exciting news, new product launches and valuable insights to keep you ahead of the curve.

So, sit back, relax, and dive into all the latest from the Cloudoffis team!

Industry highlights

The SMSF Association Technical Day

The Cloudoffis team was thrilled to participate in the SMSF Association’s Technical Day on 24-25 July at the Hyatt Regency Sydney. The event featured continued discussions around policies affecting the industry including the proposed Division 296 Tax.

Dr. Irene Guiamatsia shared compelling trends, highlighting the growing adoption of technology among SMSF specialists. She also noted that new trustees are increasingly influenced by internet research and word-of-mouth recommendations.

At Cloudoffis, we’re seeing the impact of these trends first hand as leading SMSF businesses are looking to Cloudoffis to support with better operational efficiencies, compliance support and protecting their clients data for their SMSF practices.

Get in touch today

Ensuring a seamless transition to Cloudoffis

Over 20% of SMSF funds are already audited using SMSF Auditomation by Cloudoffis, and that number keeps rising every month.

At Cloudoffis, we understand that managing process changes and upskilling your team on new systems can feel daunting, but it doesn’t have to be. Our dedicated onboarding program ensures a seamless transition, so you and your clients can start benefiting from better efficiency, data security and compliance support sooner.

Learn More


BGL Regtech Sydney

We had an incredible time at the BGL Regtech event in Sydney!

A big thank you to everyone who visited our booth – it was fantastic to connect with so many passionate professionals.

We showcased our latest features in SMSF Auditomation and SMSF Sorted, and introduced our newest product, Tax Sorted. The excitement and feedback we received were truly inspiring!

 

Graeme Colley

We extend a heartfelt thank you to Graeme Colley, Ambassador to The Auditors Institute, for partnering with Cloudoffis to review our inbuilt checklists.

His expertise ensures that Auditomation continues to support our customers in maintaining compliance.



Product updates

ISO 27001 Certification

At Cloudoffis, safeguarding your data is our top priority. We are proud to announce that we have again achieved ISO 27001 certification, the internationally recognised standard for information security management systems (ISMS).

This important certification demonstrates Cloudoffis’ commitment to continual improvement, development, and protection of information and sensitive data by implementing appropriate risk assessments, appropriate policies and controls.

Read more about our data security policy



Introducing Tax Sorted

We’re excited to invite our accounting community to join the waitlist for the upcoming product launch of Tax Sorted, a new tax workpaper solution by Cloudoffis.

Tax Sorted empowers accountants to prepare and submit tax returns with greater confidence and efficiency. By streamlining workpaper preparation and securely importing and organising your clients’ financial data, it allows you to effortlessly cross-check for final approval in a fraction of the time.

To learn more, book a demo or join our waitlist for the October launch, please visit our website

Join our Waitlist


Innovation is in our DNA

As Australia’s leading independent Software-as-a-Service provider dedicated to the SMSF industry, we bring over 8 years of unmatched experience. As pioneers, we consistently set the standard for innovation.

Customer feedback drives every feature we deliver. From enhanced integrations to intuitive platform experiences, continuous improvement is woven into our DNA, ensuring your ongoing success.

In case you missed our EOFY product wrap, click here to see what we’ve been busy working on.


Unlock more new features this financial year

As we kick start the new financial year, we’re excited to share the latest features we’ve packed into Cloudoffis. These updates are designed to ensure you enter FY25 with enhanced efficiency across your practice and improved communication and transparency between accountants and auditors.

We’ve been busy, so grab yourself a coffee and get into the updates!


Customer spotlight:

The Compliance Advantage for Superannuation Audit Services

Superannuation Audit Services, led by Denise Surjenko and Daniel Surjenko, has been a key player in this field for over 25 years. Based in Melbourne, Victoria, their award-winning firm has built a reputation for providing swift, independent auditing services with a personalised touch.

However, even the most established firms face challenges. For Superannuation Audit Services, reliance on traditional methods like Excel and hard copy documents created a bottleneck in their operations. The process was not only time-consuming but also prone to errors, impacting their ability to deliver the fast and accurate service their clients relied on. Enter Cloudoffis.

Read the full case study here.

Inside Cloudoffis

The Aussie team was thrilled to welcome our founders, Viral and Manish, to the Sydney office this month. Their visit included meetings with both existing and new clients and our partners in the industry.

Importantly, we took the opportunity to come together as a team to discuss our plans for the upcoming year, including the launch of Tax Sorted, our new Tax Workpaper solution, and how our products and services will continue to evolve to support the SMSF industry into FY25.

Rest assured that it’s going to be another big year ahead for Cloudoffis!




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Switching to Cloudoffis Made Simple

Did you know that over 20% of SMSF funds are audited using SMSF Auditomation by Cloudoffis? Each month, more auditors join the Cloudoffis community. However, many tell us that managing process changes and upskilling their team on new systems has been a barrier to making the move earlier.

Given the volume of new customers we onboard each month, we have evolved our onboarding program to ensure a smooth transition for everyone.

Onboarding Without the Headaches

Our industry-leading onboarding program supports your entire team to upskill and adopt Auditomation or SMSF Sorted by Cloudoffis seamlessly.


Daniel

However, what surprises our new customers the most is our comprehensive onboarding program for their accounting clients. In the last two months alone, we have onboarded over 30 accounting firms on behalf of our new customers.

Our service stands out because we have a dedicated account management team that works with you from before you become a customer, all the way through your Cloudoffis journey. From day one, we understand your investment goals in Cloudoffis and tailor our support to help you achieve them. Our team comprises industry experts who are committed to your success and speak your language.

Over time, we have also invested in our program to support the transition of files from new clients’ existing platforms and processes, ensuring historic records are uploaded and securely stored on Cloudoffis with ease. Whether you’re using Excel and email or another platform, our dedicated onboarding team makes the data transition a breeze.

Don’t Let Change Be a Barrier to a Better Way of Working

If you have been hesitant about how process change will affect your team’s productivity or morale, we encourage you to get in touch to discuss your concerns. You’re not alone. The good news is many clients before you have done it and only seen upside.

View our most recent customer testimonials.   

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New feature releases:
SMSF Sorted & SMSF Auditomation

As we kick start the new financial year, we’re excited to share the latest features we’ve packed into Cloudoffis. These updates are designed to ensure you enter FY25 with enhanced efficiency across your practice and improved communication and transparency between accountants and auditors.

We’ve been busy, so grab yourself a coffee and get into the updates!

Transform Your SMSF Workflows:
New features across Auditomation & Sorted Pro

Import & Re-import Flow in Auditomation & Sorted Pro

We are thrilled to announce a revamped Import & Re-import Flow for both Sorted and Auditomation! 🎉 Experience the new, efficient workflow today.

What’s New?

  • Instant Access: The moment you import financial data, you can jump straight to the job dashboard. No more waiting around!

  • Improved Efficiency: Financial data is accessible immediately while other data like observations, reports, and documents load in the background.

  • Enhanced Performance: With backend optimisations, system performance is significantly boosted, ensuring smoother execution and better resource management.

  • Streamlined Processes: These enhancements will make your existing processes more efficient, saving you valuable time.

Introducing ‘Waiting for Response’ Stage in Sorted and Auditomation!

We’re excited to introduce a new job stage, ‘Waiting for Response,’ to improve your workflow and communication! 📈

Problem Solved:

  • Auditors often have to pause audit job processing while waiting for responses from accountants. They typically change the job status to ‘Waiting for Client,’ but accountants cannot separately track these jobs, leading to delays.

The Solution:

  • New Job Stage: The ‘Waiting for Response’ stage will be introduced to accountants using Sorted and Sorted Lite, allowing accountants to easily track jobs pending their response.
  • Improved Turnaround Times: This new stage will streamline communication and speed up the turnaround times between accountants and auditors.


Big News for Auditomation Users


Reimporting clients details

We’ve listened to your feedback and are excited to introduce a new solution for re-importing client details in Auditomation! 🚀

What’s new?

  • One-Click Re-import: Now, with just one click, you can re-import client details. Fund, member, and trustee information will be updated automatically, ensuring accuracy and saving you time.
  • New ‘Add Alternate Address’ Field: You can now add an alternate address in the client details page. This new field is used for generating audit letters and reports with the alternate address, we’ve also added a placeholder called ‘Alternate Address’ to make it seamless.

These updates will drastically reduce manual efforts and enhance accuracy in your auditing process.

BGL Workpaper Docs

We’re excited to bring Auditomation customers a major time-saving enhancement: Auto Availability of BGL Workpaper Docs! 🚀

Previously, you had to manually convert each BGL Workpaper document to a Cloudoffis-supported format to use our bookmarking and search features. This was time-consuming, especially with a large number of documents.

The Solution:

  • BGL Workpaper documents will now be automatically converted to the Cloudoffis-supported format. No more manual conversions needed!


Billing Module & Practice Management

Whilst the Cloudoffis Billing module and Practice Insights were already available in the old version for Auditomation customers, we’ve now integrated them into the new version for a more streamlined and user-friendly experience. 🎉. Discover how Cloudoffis can streamline your practice management and enhance your workflow.

Checklist for FY24
Since there were no updates from the ATO this year, we’ve taken the opportunity to revamp and clarify our checklist for better understanding and ease of use.

 

Exciting updates for Class customers using SMSF Sorted Lite

We’re excited to announce more updates to enhance your SMSF Sorted Lite experience.

What’s new?

  • The audit console page is now even more action-oriented, allowing you to upload documents, submit jobs for audit, and download workpaper files directly from your Sorted Lite account, making your workflow smoother and more efficient.
  • The query module has been improved, enabling accountants to filter pending queries and prioritise actions for faster turnarounds.
  • We’ve made it easier for auditors to join the Cloudoffis Auditomation Pro platform, streamlining their audit processes and improving collaboration with Class accountants who use Sorted Lite, guaranteeing faster turnaround times.

$50 referral bonus SMSF Sorted Lite accountants

  • Did you know that as an SMSF Sorted Lite accountant, you can earn a $50 referral bonus when you refer your auditor to use Auditomation? Not only will you gain more control over every fund you manage, but you’ll also be able to automate your workpapers and submit audits to your auditor with just one click. This will help speed up the turnaround time of funds, as auditors will receive more structured data to work on. You’ll both benefit from easier collaboration with improved query management tools.

We love nothing more than investing in improvements to enhance your workflows and we continue to lead the industry with our product innovations. If you’d like any further information on the features we’ve delivered, reach out to Kresant in Sales or Dilnar and Jocelyn in Customer Success.

Read more about these releases in detail


SMSF Sorted

SMSF Auditomation





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Welcome to the June edition of the Cloudoffis bulletin

Welcome to the June edition of the Cloudoffis Bulletin.

It’s hard to believe how swiftly we’ve completed the financial year and started the new one. This issue is packed with our favourite topics: industry trends, customer highlights, and plenty of product updates to help you kick off the new financial year with a bang.

So grab a cuppa and settle in!

Industry trends

Back in January, we predicted that auditors would be required to safeguard their businesses against compliance risks and we would see a spike in businesses looking to streamline operational processes for enhanced efficiency

These trends have indeed started to take shape. SMSF auditors adopting Cloudoffis for compliance and prioritising operational efficiencies are experiencing incredible success. These forward-thinking customers report delivering more audits, faster, and with greater confidence than ever before.

Customer spotlight

David Alcock, Manager at Integrated Audit Services, chose Cloudoffis for its comprehensive compliance support and its ability to address specific compliance needs that their previous manual system couldn’t handle.

However, he was pleasantly surprised to find additional benefits, including significant time savings through automation, which drastically reduced the time spent on audits. He also experienced fewer headaches thanks to simplified compliance and audit management, and gained valuable operational insights with an enhanced ability to track data and processes.

Read more

FY24: The year of streamlining your workflows

It’s amazing how much can be achieved in a year. Below, we’ve highlighted our top feature releases for FY24, made possible by the feedback from our customers.

SMSF Auditomation

Billing by Cloudoffis
July 23
Speed up the time it takes to get an invoice to a client, so you’re paid faster. This feature helps centralise all your practice management requirements.

Read more

New look Auditomation
August 23
We revamped Cloudoffis Auditomation with a brand new design to improve efficiency and simplify your workflows. What you might not know is that this redesign also enabled us to build new capabilities behind the scenes that improve your daily experience.

Watch the video

Improved Class integration
October 23

Although the integration was designed for accountants, it turned out to be a bonus for auditors too! Now, accountants can submit their workpapers to auditors with just one click, ensuring that auditors receive clients’ data securely and directly from Class.

Read more

Manual audit upload
October 23
One of our customers’ favourite releases this year, manual audits transforms your manual files into structured data ready for immediate auditing. Say goodbye to intricate, error-prone processes and hello to increased revenue and satisfied clients.

Read more

Custom Folders
November 23

Streamline document organisation and retrieval with the Custom Folder feature in our Document Management System (DMS). This enhancement to the Permanent Document section allows you to create personalised subfolders, enabling efficient document upload, management, and the addition of notes or comments directly at the folder level.

Approval history
January 24

A historical record of when and who prepared, reviewed, audited or approved paperwork at each stage of the process, this feature helps you keep a track of your processes in your practice for years to come.

SMSF Sorted

We received feedback from our accounting clients at the end of FY23, highlighting the need for deeper integrations with the industry’s leading apps. You asked, and we delivered.

Sorted + Class
This year, we’ve focused on enhancing how accountants prepare their SMSF workpapers in Class and collaborate with auditors to expedite fund turnaround.

See how it works

FYI Docs
For accountants aiming for greater efficiency, we introduced an integration with FYI Docs. This allows you to seamlessly import and export documentation without leaving Cloudoffis.

Find out more

Signed off feature
Recognising the importance of audit support, we added a new “Signed Off” feature to Sorted Pro’s workflow, making it easier to track who has approved financials.

Read more

If you’d like any further information on the features we’ve delivered this year, reach out to Kresant in Sales or Dilnar and Jocelyn in Customer Success.

In the meantime, we’d like to thank you for another great year. We’re excited to introduce many new features as we continue leading the industry with our product investments into FY25.

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Great news for Class Customers

We’re excited to announce that the enhanced Class Workpapers powered by Cloudoffis is now live and free to use for Class SMSF Accountants.

The introduction of over 10 new features and enhancements to Cloudoffis Sorted Lite further streamlines the management of your client SMSF’s on Class.

What’s New:

  • Simplified Activation Process: No more lengthy forms. Simply log into your Class account, navigate to ‘Settings’ and then ‘Integration’ and activate Cloudoffis Sorted Lite.
  • Single Centralised Platform: Manage everything from one place. Prepare workpapers, audit, manage queries and collaborate with auditors seamlessly from the Cloudoffis portal connected to Class.
  • Audit Console Page: Track the progress of workpapers and audit submissions with the new Audit Console page. Gain insights into queries with your auditor.
  • Integration with Class DMS: Load documents directly from Class DMS to Sorted Lite and save final workpaper files back to Class DMS. Maintain document tags between Cloudoffis and Class effortlessly.
  • Working with Multiple Auditors: Connect with multiple auditors and submit funds to them hassle-free.
  • Sorted Lite Dashboard Options: Enjoy new options on the Cloudoffis Sorted Lite dashboard, including viewing documents, status in audit and queries and updating the latest financial data.
  • Easy Switching Between Different Businesses: Switch between different businesses in Class effortlessly, simplifying fund management for multi-business firms.

For a more information, check out the Class Help Doc. For a detailed walkthrough, check out our Demo Video.





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