ABC Self Managed Super Fund
Member A = Pension
Member B = Accumulation
Actuarial Certificate Percentage (Pension Exemption) = 80%
Fund is unsegregated fund and it derives the following income:
Income/Expense $
Taxable contribution from Member B 50,000
Capital gain - Other Method 500,000
Other investment income 225,000
Total Assessable Income 775,000
Fund investment expense 10,000
Management and administration expense 10,000
Other deudctions 5,000
Total Fund Deductions 25,000
Questions to be answered:
Q1: Exempt current pension income = (500K+225K)x80% = $580,000
Exempt current pension income = (500K+225K-25K)x80% = $560,000
Or Exempt current pension income = 225Kx80% = $180,000, which one is correct?
Q2: Net capital gain = $500K, is it correct?
Or Net capital gain = $500K x (1-80%) = $100K?
Q3: Deductions as at Section C of 2008 SMSF Annual Return
Investment expenses = $10,000 or $10K x (1-80%) = $2,000?
Management and administration expenses = $10,000 or $10K x (1-80%) = $2,000?
Other deductions = $5,000 or $5K x (1-80%) = $1,000?
Calculation Method A Method B Method C
Income $ $ $
Net capital gain 500,000 100,000 500,000
Other investment income 225,000 225,000 225,000
Assessable contribution 50,000 50,000 50,000
Total Assessable Income 775,000 375,000 775,000
Deductions
Exempt current pension income 560,000 180,000 580,000
Fund investment expense 10,000 2,000 2,000
Management and administration expense 10,000 2,000 2,000
Other deudctions 5,000 1,000 1,000
Total Fund Deductions 585,000 185,000 585,000
Taxable Income 190,000 190,000 190,000
Which Method (A, B or C) is correct?
[ 本帖最后由 Artcore 于 2008-12-23 13:59 编辑 ]
评论
Artcore, how many points are you going to give out if I answer your questions?
评论
很多。当然要是好的答案， 最好有参照的。
评论
Answers:
Q1: Exempt current pension income = (500K+225K)x80% = $580,000
Q2: Net capital gain = $500,000
Q3: Method C
Reference:
http://www.ato.gov.au/content/downloads/n15437-07-2006_w.pdf
and TR 93/17
评论
Those 2 reference I have already.
As you can see, while the final result of deriving the taxable income is the same, but the amounts reported on the annual return is different.
评论
Thanks for the points Artcore.
You are right the results are the same when we apply method A and B to the return. However, in answering your questions, we need to look at the exact meaning of the individual item/label in the Fund’s tax return. By paying much attention to these procedures we can avoid being made non compliance. Compliance is one of the main focuses in the new superannuation reforms. An ATO audit is the last thing we ever want.
Label K at item 11 talks about exempt pension income. It does not take into account any expenses.
As for the capital gains, NAT 15437-07.2006 has one paragraph indicating that:” if the fund has unsegregated current pension assets, trustees will need to factor in capital gains and losses. In this case, capital gains are seen as normal assessable income. Trustees will need to include these gains as part of the fund’s income before you work out how much of the fund’s income is tax exempt.”
Hope this eliminates your concern.
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