Overview
Segregation is now available for Simple Fund 360 and will support the Pooled (Pool) Asset Allocation method.
In the meantime refer to the Segregation help to prepare yourself for segregating funds in Simple Fund 360.
Note: The Direct method is not supported in Simple Fund 360.
Navigation
| From the Main Toolbar, go to Member. |
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| Select Fund pension policies. |
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How does segregation work in Simple Fund 360?
Every segregated fund is required to create a Segregation Policy each financial year to outline the allocation of investments and members to pools.
To successfully create a segregation policy in Simple Fund 360 the following steps will need to be completed:
- Create a new Segregation Policy and Policy Period
- Create the Segregation Pools and allocate Members to Segregation Pools
- Allocate Investments to Segregation Pools
How do I manage my Segregation Policy during the financial year?
It is important to note that the Segregation Dashboard will allow users to allocate investments currently held by the fund. However, the dashboard will not display any investments disposed of in the year.
- These disposed investments should have been accounted for in the segregation policy prior to their disposal to ensure any income and expenses are allocated correctly.
This involves segregating at the start of the year, year-end, and whenever purchases were made throughout the year.
What happens if the policy does not change each year?
An option Copy Existing Policy is available to quickly update the policy if it does not change. This ensures you do not have to re-segregate each financial year.
I am a Simple Fund Desktop user and am ready to migrate my remaining funds. How do I achieve this?
A fund's existing segregation structure in Simple Fund Desktop will not be migrated up to Simple Fund 360. Once the fund is migrated you will be able to create a new Segregation Policy in Simple Fund 360. To assist with preparing the Segregation Policy a Segregation Report can be obtained from Simple Fund Desktop.
To proceed with segregation, please select your scenario below:
Select your Scenario
| Are you migrating a segregated fund from Simple Fund Desktop? | Are you creating a Segregation Policy for a fund already in Simple Fund 360? |
|---|---|
| Refer to Create Segregation Policy for a fund in Simple Fund 360. |
Segregation Dashboard additional information
Select Edit Current Policy to review and change the existing Segregation Policy.
To delete a policy, in the Edit screen select Delete Current Policy.
Select the Edit icon next to the pool to delete.
Select Delete Pool.
Year end processing requires the calculation of exempt current pension income and non deductible expenses for pension funds. If the segregated fund has pension specific pools (all members linked to the pool are in pension phase these expenses will be calculated as non-deductible during the create entries process.
Non-allocated general and investment expenses can be apportioned at year end by creating a pension policy.
Refer to Fund Pension Policies for detailed instructions. However please note the following:
- Segregated funds do not require an actuaries percentage. Input 0 in this field.
- Use the options ATO Formula (TR 93/17) for General and Investment expenses. This will be calculated during the create entries process.
See also: Calculating Non Deductible expenses for Partly Pension Funds
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 for segregated funds (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). 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. |
Does Simple Fund 360 support a hybrid fund?
Funds that are part segregated and unsegregated are supported in Simple Fund 360. Asset allocations for earnings and tax will be distributed to pools and any unsegregated assets will be apportioned under the daily weighted average method.
When creating a Segregation Policy, do not allocate any unsegregated assets of the fund to a pool. During the year end 30 June, Create Entries the earnings and tax on these assets will be apportioned using the daily weighted average method. Refer to Fund Pension Policies for information on obtaining an actuaries certificate.