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:
For a summary of Actuarial Certificates in Simple Fund 360, click here.
Navigation
| From the Main Toolbar, go to Member. |
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| Select Fund pension policies. |
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From the Fund Pension Policies screen you will be able to request, enter or edit an actuarial certificate.
Important Pre-Requisites
- 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 to be processed to the end of the year if required by the Actuary Provider.
- A supported actuary provider account is needed to request an actuarial certificate through Simple Fund 360.
1. Select + New Actuarial Certificate.
2. Ensure the fund's current financial year is set. Select Request Actuarial Certificate to open the Actuary Wizard.
3. Select an actuary provider. For a full list of providers, click here. Select
4. Complete and review your contact details. Select
5. From 1 July 2017, confirm whether the fund is eligible to use the Segregated method or not. Also check article Changes to ECPI from 01 July 2017.
6. To submit your request to the Actuarial Provider, select . After clicking Submit to Actuary, you will be prompted to log in to your actuary provider account to complete the application.
7. A pension policy will be created. Depending on the Actuarial Provider an estimated percentage will be made available.
8. 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.
9. 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.
10. Once you have received the certificate, depending on the Actuarial Provider, the policy will automatically update from estimate percentage to confirmed percentage.
You can edit the pension policy, by selecting the policy created. Enter the actuarial percentage and change the certificate status to Completed.
11. The Actuarial Certificate can be uploaded to the Documents section of SF360.
- Once tagged appropriately, the Actuary Certificate can be used when generating report packs:
To input a manual actuary percentage, you will need the following information:
- The actuary percentage for the fund
- (If applicable) The periods of the year during which the fund was deemed segregated
1. Select + New Actuarial Certificate.
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2. Ensure the fund's current financial year is set. Select Manually Enter Details to open the Pension Policy screen.
3. Input the following details:
| Field | Explanation |
|---|---|
| Tax Exempt (Actuarial) Percentage | Input the Actuarial Percentage. |
| General Exp Percentage | Input the non-deductible General expenses percentage (See Below). |
| Investment Exp Percentage | Input the non-deductible Investment expenses percentage.(See Below). |
Fund is unsegregated: Unsegregated funds will need to record the Actuarial Percentage received, then select the method to record the General Expense and Investment Expense deductibility.
Fund is segregated: Segregated funds, including deemed segregated funds, will need to both record the actuarial percentage received from your actuary provider and, if applicable, the dates in which the fund was deemed segregated. The method used to record the General Expense and Investment Expense will also need to be selected.
4. Select Save.
5. The Actuarial Certificate can be uploaded to the Documents section of SF360.
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.
Simple Fund 360 provides the following options when apportioning the fund's expenses to determine their deductibility (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). *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. |
In the 2017/2018 financial year if the fund has a both a deemed segregated and unsegregated segment and you are using the User-Specified % or Actuarial %. Simple Fund 360 will apply the expense percentage to the unsegregated segment(s) only. The ability to include a tax adjustment in the final year-end create entries is also available.
See also: Calculating Non-Deductible expenses for Partly Pension Funds
For an overview of how Simple Fund 360 applies these percentages, please refer to General and Investment Expenses below:
General Expenses
By default the accounts that use the tax label Expenses - General Expenses are:
| General Expenses % | |
| 30100 | Accountancy Fees |
| 30200 | Administration Costs |
| 30500 | Advertising |
| 30700 | Auditors Remuneration |
| 30800 | Asic Fees |
| 30900 | Advisor Fees |
| 31500 | Bank Charges |
| 32800 | Commission |
| 35000 | General Expenses |
| 37700 | Interest Paid - ATO General Interest |
| 37900 | Interest Paid |
| 38000 | Insurance |
| 38200 | Fines |
| 38700 | Legal Fees |
| 40500 | Member Expenses |
| 41800 | Postage, Printing and Stationary |
| 47500 | Trustee Fees |
Investment Expenses
| Investment Expenses % | |
| 33400 | Depreciation |
| 37500 | Investment Expenses |
| 39700 | Light and Power all properties |
| 40000 | Management Fees |
| 41910 - 42150 | Property Expenses |
After Completing the Actuarial and Expense Percentage Details
After receiving an Actuarial Certificate or inputting the actuarial details manually, you will need to reverse and re-create entries for the percentages to be included in the year end calculations (if you had created entries to 30 June prior to applying/entering 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.
Deemed Segregated Fund
Deemed segregated funds will automatically have the appropriate segregated periods completed when obtaining an actuary certificate through Simple Fund 360.
Recording a manual actuary certificate in Simple Fund 360 for a deemed segregated fund will require the deemed segregated periods to be added when recording the actuary percentage.
For assistance in identifying when a year contains deemed segregated periods, please refer to Changes to ECPI from 01 July 2017.
Segregated periods can be added to an actuary percentage simply by clicking Add and recording the segregated period commencement and cessation dates.
For information on how to manually enter a pension policy when the fund is in 100% in pension phase for the entire financial year, click here.
Amendments/Deleting Fund Pension Policies
If a confirmed certificate needs to be changed then you will need to create a new actuarial certificate request in order to resend the data.
For more information, click here.