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Zen Section
id1389095008

Objective

Contribution splitting allows members to split their concessional contributions with their spouse.  For more information refer to the ATO website. 

In this task Jeevan made a concessional contribution of $10,000 in the previous financial year that will be split to his spouse Toni in the current year. By the end of this task you will be able to process contribution splitting transactions in Simple Fund 360. 

Steps:

  1. Jeevan would have recorded a concessional contribution in the prior year ($10,000$11764.71) which will be taxed at 15%. Refer to How to Enter Contributions for more. 
  2. In the current financial year, the contribution split will occur. Jeevan will transfer $8$10,500 000 (net of 15% tax on concessional contributions) to Toni as a rollover from account 46000. In this example, the transfer takes place on 01/07/2016.
  3. In the same transaction, Toni will record a transfer into account 28500 of $8$10,500000.

  4. Once the transaction has been recorded it can be saved and the documents (Superannuation contribution splitting application) can be prepared.

    Warning

    Contributions splitting does not reduce the amount counted towards the original member's concessional contributions cap.

  5. Bank Transfer for the split of $8$10,500 000 completed in Task 2.2 between Jeevan and Toni's bank accounts on 01/07/2016. 

Zen Section
id586471988

Task 2.4.1: Record Contribution Split

Record the contribution split through the Transaction List. Selecting account 46000/MEMBERCODE will prompt Simple Fund 360 to present you with the Rollover Payment Details section allowing you to record the transaction.

 

Info
titleImportant

When the Contribution Spit occurs partway through the year, ensure you have completed The Create Entries Process a day before the event.

 

Include Page
IL:_ScreenAccessTransactionInput
IL:_ScreenAccessTransactionInput

From the Transaction List screen, select New Transaction. From the drop-down menu, select Journal. 


  1. Input the the following:

    Date01/07/2016
    Reference11
    DescriptionContribution Splitting


  2. Under the first Account heading, select account 46000 for Jeevan Hockey Accumulation, Input the Rollover payment as $10,000.00 Debit.


  3. Select  and Input the Rollover Payment Details.

Required Information: Type of Payment, Member, Spouse and Display in Operating Statement options

 

Type of Payment select Contributions Splitting for a Spouse.

Member: select the original member who received the contribution.

Spouse: input the members spouse. This contact will be picked up from the Contacts screen.

Select Yes or No as to whether the payment amount will appear in the Operating Statement.

Info

The contribution amount will be reflected in SMSF Annual return under Section F, member outward rollovers and transfers.

 

6.  Select the Transfer In 28500/MEMBERCODE Account to record the contribution.

Select the More Details Panel, input the amount into the taxable component (to reflect the original contribution made) enter the appropriate preservation component.

 

This contribution amount will be reflected in SMSF Annual return under Section F, member Inward rollovers and transfers. 


Select Post and then select Post and Prepare Documents to produce the supporting documentation. 


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