Overview
This article explains how to correctly treat a fund as 100% in pension phase in Simple Fund 360, and why tax may still be calculated even when all members are in pension.
Common Question
Both members are in pension and below the Transfer Balance Cap. Why is Simple Fund 360 still calculating tax payable?
Even if:
- All members are in pension phase
- Members are below the Transfer Balance Cap (TBC)
Tax may still be calculated if the fund has not been correctly set as 100% pension phase or if certain types of income remain assessable.
Instructions
Before you create entries to year-end, a Pension Policy is required to be entered into Simple Fund 360.
| From the Main Toolbar, go to Member. | |
| Select Fund pension policies from the list. |
From the Fund Pension Policy page, select +New Actuarial Certificate.
- Select Manually Enter Details from the drop down list.
- Ensure the fund's current financial year has been selected.
- Select the Manually Enter Details Button.
- Update the fund's Pension Policy.
| Certificate Provider | Select Other. |
| Actuarial Percentage | Input 100%. |
| Was the fund in full pension phase for the income year | By having this option selected  , all CGT Events will be treated as though the fund's assets have been fully segregated to pension members. The Create Entries process will ignore any capital gain or loss, leading to no Net Capital Gain reported on the SMSF Annual Return. |
| General & Investment Exp Percentage | Input your General and Investment Expense Percentages, for example, input 100% |
| Certificate Status | Select Confirmed. |
| Certificate Creation | Select Manual. |
Once the pension policy has been updated, select Save.
You will now be able to create entries to year-end.
Note:
When a fund manually set to 100% Tax Exempt is rolled over to the next financial year, Simple Fund 360 will automatically create a new identical policy. If any changes are required, this policy would need to be updated manually.
See Also
Unsegregated funds that are part pension, part accumulation will apply for an actuarial certificate prior to completing the year-end accounts. See Fund Pension Policies for actuary application instructions.