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Manually Input an Actuary Percentage


 

Important Prerequisites to use the Actuarial Wizard

  • Enter all transactions for the financial year.
  • Member(s) have been converted to pension mode.
  • Fund relationships for the Trustee and Tax Agent have been entered.
  • Fund Details have been entered (ABN,TFN etc).
  • Create entries is not required to be processed to the end of the year.

 

  1. Select + New Actuarial Certificate.




  2. The fund's current financial year will pre-fill. Select Manually Enter Details to open the Pension Policy screen.




  3. Under the Unsegregated Method section enter the percentage in the Tax Exempt (Actuarial ) Percentage field:

    Field
    Explanation
    Tax Exempt (Actuarial) PercentageInput the Tax Exempt Percentage received from the Actuary or in the case of a fund which is deemed to be segregated for tax purposes enter 100%

    Where the percentage entered is equal to 100% this option will be available. Enabling this means you want ECPI for the fund calculated using the Segregated Method.

    Assets of a complying fund are segregated current pension assets at a time if the assets are specifically identified as supporting retirement phase income streams and the income from these assets has the sole purpose of funding payment of retirement phase income streams. Capital gains and losses are disregarded if a capital gains tax event occurs in relation to a segregated current pension asset



  4. The Segregated  Method section will be available for the 2018 Financial Year and later:

     

  5. Under the Segregated Method section enter the following:

    Field
    Explanation
    Tax Exempt PercentageThis will be locked at 100%
     

    From 1 July 2017, a fund cannot use the segregated method at any time during a particular financial year if at the previous 30 June any member had a TSB of more than $1.6 million, and also had a retirement-phase pension from any fund (not necessarily this SMSF).

    Select this checkbox to confirm that the fund is eligible which will allow you to enter the segregated periods

     
    Enter the periods of time for the year where the fund is using the Segregated Method for claiming ECPI.
    For any portion of any income year where a SMSF is in 100% retirement phase and does not have disregarded small fund assets, ECPI is calculated using the segregated method.

    If you have selected the checkbox 'Was the fund in full pension phase for the income year?' then this will default to the Full Financial Year.



  6. Under the Non-Deductible Expenses section, select the methods you will be suing to calculate non-deductible expenses for the fund

 



 

General and Investment Expense Percentages (non-deductible expenses)


See also: Calculating Non Deductible expenses for Partly Pension Funds

Generally, expenses incurred by an SMSF in deriving Exempt Current Pension Income cannot be claimed anywhere on the SMSF Annual Return. Where an expense relates to both accumulation and pension members, the expense must be apportioned so that only the proportion of the expense relating to the production of assessable income is claimed.

If you requested an Actuarial Certificate through Simple Fund 360 by default these percentages will pre-fill using the ATO Formula TR 93/17. These fields are editable if you are inputting a different percentage.

 

Simple Fund 360 provides the following options for calculating general and investment expenses (select from the drop down list):

Option
Explanation
Use ATO Formula (TR 93/17)

Select this option to calculate the general and expense percentages based on the formula contained in the ATO's Taxation Ruling 93/17 (Simple Fund 360 will complete the calculation during the Create Entries Process).

For more information on TR 93/17, click here

User SpecifiedSelect this option to input a manual percentage for both the general and investment expenses.
Use Actuarial PercentageSelect this option to use the current year actuary percentage for both the general and investment expense percentages.

General Expenses


By default the accounts that use the tax label Expenses - General Expenses are:

 

General Expenses %
30100Accountancy Fees
30200Administration Costs
30500Advertising
30700Auditors Remuneration
30800Asic Fees
30900Advisor Fees
31500Bank Charges
32800Commission
35000General Expenses
37700Interest Paid - ATO General Interest
37900Interest Paid 
38000Insurance
38200Fines
38700Legal Fees
40500Member Expenses
41800Postage, Printing and Stationary
47500Trustee Fees

Investment Expenses


By default the accounts that have the tax label set to Expenses - Investment Expenses are:

 

Investment Expenses %
33400Depreciation
37500Investment Expenses
39700Light and Power all properties
40000Management Fees
41910 - 42150Property Expenses

Uploading the Actuarial Certificate


The Actuarial Certificate can be uploaded to the Documents section of SF360.