The Fund Pension Policies screen allows you to request an Actuarial Certificates and enter the non-deductible expense proportions for a fund. Users can also manually input actuarial details if they have obtained an actuarial certificate externally.
Supported Actuarial Certificate Providers
The following providers are available through Fund Pension Policies:
|From the Main Toolbar, go to Member.||
|Select Fund pension policies.||
Request an Actuarial Certificate
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.
Select + New Actuarial Certificate.
Ensure the fund's current financial year is set to 2014/15. Select Request Actuarial Certificate to open the Actuary Wizard.
Select an actuary provider
Complete and review your contact details. Select Next>.
To submit your request to the Actuarial Provider, select
A pension policy will be created. Depending on the Actuarial Provider an estimated percentage will be made available.
To complete the application you will need to login to the Actuarial Provider's website. Select Click here to complete your application.
If this is your first time accessing the website, you will need to register your username and password.
Before proceeding, review the application data which will be pre-populated from Simple Fund 360.
Once reviewed, select Request Certificate. You will receive an email containing the actuary certificate and invoice to the specified email address. You are required to pay the invoice outside of Simple Fund 360.
Once you have received the certificate you can edit the pension policy, by selecting the policy created. Enter the actuarial percentage and change the certificate status from Estimate to Confirmed.
Manually entering an Actuarial Certificate
- Select + New Actuarial Certificate.
- The fund's current financial year will pre-fill. Select Manually Enter Details to open the Pension Policy screen.
Input the following details:
Field Explanation Certificate Provider Select the Certificate Provider. Actuarial Percentage Input the Actuarial Percentage. General Exp Percentage Input the non-deductible General expenses percentage. Investment Exp Percentage Input the non-deductible Investment expenses percentage. Certificate Status Select the status as Estimate or Confirmed. Certificate Creation Select Manual.
- Select Save.
Note: if your funds are fully segregated, or in 100% pension phase, then you will still need to go through the process above to ensure the calculation is accurate. Toggle on the relevant option and the percentage will be defaulted to 100%. Also check article Changes to ECPI from 01 July 2017
General and Investment Expense Percentages (non-deductible expenses)
For an overview of how Simple Fund 360 applies these percentages, please refer to: General and Investment Expenses
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 Accurium and Act2, 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.
Foreign Income Tax Offsets/Foreign Tax Credits: Actuary percentage is now apportioned over foreign tax credits claimable by pension funds (as per ATO instruction).
Simple Fund 360 provides the following options for calculating general and investment expenses (select from the drop down list):
|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). Selecting the ATO formula will disregard the deemed segregation period and override the 100% non-deductible expenses with the ATO percentage.
For more information on TR 93/17, click here.
|User Specified||Select this option to input a manual percentage for both the general and investment expenses.|
|Use Actuarial Percentage||Select this option to use the current year actuary percentage for both the general and investment expense percentages.|
|Was the fund in full pension phase for the income year?||
Select this option if the fund was in full pension phase for the entire year and any capital gains and losses generated by the fund will be ignored. No Net Capital Gain will be reported in the SMSF Annual Return and all CGT events will be treated as though the fund's assets have been fully segregated to pension members.
Important: This option will only appear if the fund's actuary percentage is 100% and there are no Notional Captial gains realised in the year
By default the accounts that use the tax label Expenses - General Expenses are:
|General Expenses %|
|37700||Interest Paid - ATO General Interest|
|41800||Postage, Printing and Stationary|
|Investment Expenses %|
|39700||Light and Power all properties|
|41910 - 42150||Property Expenses|
After Completing the Actuarial and Expense Percentage Details
After receiving an Actuarial Certificate from either Accurium or Act2, or inputting the Actuarial details manually, you will need to reverse and re-create entries for the percentages to be included on the year end calculations (if you had created entries to 30 June prior to applying for the actuary certificate). See The Create Entries Process for more information.
If you applied for the actuarial certificate but did not create entries to 30 June prior to your application (it is not mandatory) you will need to create entries to 30 June once you have input the actuarial information.
Uploading the Actuarial Certificate
The Actuarial Certificate can be uploaded to the Documents section of SF360.
Manually updating the Certificate Status
Users are able to manually update the Certificate Status when editing the Pension Policy. To manually update the Certificate Status from Pending to Confirmed, toggle the Mark certificate as completed from within the edit Pension Policy screen