Simple Fund 360 supports income allocation from investments based on the segregation policy, whilst calculating income-tax related items based on the proportionate method and apply this to members. This provides you with greater flexibility in terms of investment choice and strategy.
Typically, this function is used when:
- A fund member has a total super balance over $1.6 million immediately before the start of the relevant income year
- The fund is using segregation for accounting purposes but can no longer use a segregated methodology for tax purposes.
This method cannot be used part-way through the year and can only be used from 2018FY and onwards.
This function is not used when the fund is fully segregated, or “deemed segregated”. Refer to the help article on "How to treat a 100% Pension Fund in Simple Fund 360".
This allows you to allocate income from investments to specific member accounts while having income tax (ECPI, Foreign Tax credits, Foreign resident Withholding, Net capital gains and PDIT) calculated based on the proportionate method (unsegregated method).
Example - The UFC Super Fund has two members Jon Jones (Account-Based Pension) and Ronda Rousey (Accumulation Phase).
A segregation policy was created, 100% of BHP Shares (77600/BHP.AX) were allocated to Jon Jones.
The dividend for BHP (23900/BHP.AX) will only be allocated to Jon Jone's Balance. Exempt Current Pension Income (ECPI) will be calculated using an Actuary Percentage.