Electronic Lodgment of the PAYG Payment Summary: Superannuation Income Stream – Simple Fund 360 Knowledge Centre

Overview

You can now prepare and directly lodge the following PAYG Payment Summaries to the ATO from Simple Fund 360.

PAYG payment summary – Superannuation Income Stream
PAYG payment summary – Superannuation Lump Sum

Pre-Requisites

1. Ensure you have set up a lodging party in Simple Fund 360.

Confirm the funds that will be proceeding with lodgments are attached against the lodging party.
Ensure you have recorded the lodging party's email, phone number, and address against the Contact.

2. Ensure you have nominated and authorised BGL with the ATO for SBR Lodgment.

If you are already using SF360 for Annual Return lodgement, this would have been set up already. However, we would still recommend you to confirm the setup, prior to lodging PAYG payment summaries.

3. Ensure you have finalised your transactions for the financial year-end. Confirming all pension payments, including any PAYG withheld, are processed and matched.

4. Ensure you have recorded the Fund ABN and Fund Address in Fund Details.

5. Ensure you have attached the Trustee(s) in Fund Relationships.

6. Ensure you have recorded the Member's TFN and Address against the Contact.

Note - Automatic Tax Offset Calculation

If a taxed element exists for the PAYG payment, Simple Fund 360 now calculates the tax offset amount where appropriate:

For any new payments, the tax offset will be automatically calculated if the conditions are met.
For any existing entries that are already entered into the system but have not been electronically or manually lodged, you will need to re-save the payment transaction or click Refresh on the PAYG Payment Summary screen for the tax offset to be calculated.
(Note: depending on the circumstances, both actions may be required)

The conditions are as follows:

The payee is under 60 (regardless of income stream type: ABP or CDBIS non-reversionary) Or
The payee is under 60 and is the recipient of a reversionary ABP income stream, where the deceased was under 60 at time of death Or
The payee is under 60 and is the recipient of a reversionary capped defined income stream (CDBIS), where the deceased was under 60 at time of death.

Test

Identify PAYG Payment Summaries

From the Main Toolbar navigate to the Compliance menu.
Select PAYG Payment Summary.

1. Select the Financial Year. The current financial year will be selected by default.

2. Select the Super Income Stream Payments tab.

Displayed will be the pension payments made against the 41600 - Pensions Paid account (where the below conditions are met). The total payments under a member account will have a corresponding PAYG Payment Summary - Superannuation Income Stream form (Note: this form cannot be lodged with the ATO.)

Non - Capped Defined Benefit Income Streams (Account Based Pensions)

Capped Defined Benefit Income Streams

All pension payments where the member is under 60 on the payment date of the drawdown.

Reversionary death benefit payments to a beneficiary who is under 60 years old.

Depending on the circumstances, CDBIS payments where the member is under or over 60 on the payment date will be displayed.

Reversionary death benefit payments to a beneficiary who is under 60 years old.

Reversionary death benefit payments to a beneficiary who is over 60 years old and the original CDBIS has been commenced before 01/07/2017.

For more information, visit ATO: PAYG withholding obligations

For more information on recording pension payments, with PAYG withholding, click here.

	States that the account is a Reversionary Death Benefit Income Stream.
	Member Settings: Payment Period: Change the period during which payments were made. Death Benefit (Reversionary): Toggle on if the payee is under 60 years old and a death benefits dependant, where the deceased died at 60 years or older.
	Print PDF: Preview and download the PAYG payment summary - superannuation income stream, that will be pre-filled based on the data within the fund. *Note this form cannot be lodged with the ATO.**
	All Reports: Select the downward besides the pdf icon to download the relevant reports for the transaction. This can include the: PAYG Payment Summary Rollover Benefits Statement Lump Sum Prepayment Form Contribution Splitting Form
	Refresh: Click Refresh, to manually update the data if the original transactions has been modified or deleted. Selecting Refresh, will also revert Member Settings.
	Mark as Lodged: Select Mark as Lodged if the PAYG payment summary has been manually lodged. *Note this option will appear when clicking the checkbox to the left of the transactions.** To undo this, select beside the transaction status.

Review PAYG Payment Summaries

It is best practice to make changes before the lodgment of the "PAYG Payment Summary - Superannuation Income Stream". This will ensure the transactions processed in Simple Fund 360 will agree with the actual lodgment to the ATO.

1. In the PAYG Payment Summary Dashboard, click the checkbox to the left of the transactions to include in the review.

Alternatively, Select all available forms

2. Select Review and Lodge

3. Under the Income Stream Payment: Review screen, select Add Adjustment to make changes to the total tax components per member account. Select to confirm changes, or to cancel.

Note:

1. The Amount Column displays amounts to be reconciled with your transactions as per Simple Fund 360's ledger and will not be sent to the ATO.

2. Adjustments made in this screen will not change the original transactions recorded under the Transaction List.

	Edit the adjustment entered.
	Delete the adjustment entered.

4. Once the review is complete, select Review and Continue

Alternatively, select to return to the PAYG Payment Summary Dashboard.

Validate PAYG Payment Summaries

Once the review is completed users will be taken to the Income Stream Payment: Validation screen and will be able to:

Generate the Lodgement Declaration which is required when the PAYG Payment Summary is being lodged electronically.

Print PDF: Preview and download the PAYG payment summary - superannuation income stream, that will be pre-filled based on the data within the fund.

Note* this form cannot be lodged with the ATO.

1. Click the checkbox to the left of the transactions to include in the validation.

2. Select to prepare the PAYG Payment Summary for lodgement.

Where the validation has failed, select to view a report of the error codes and what actions are required to rectify. For a full list of the ATO Validation Error Messages, click here.

Proceed to update the fund in accordance with the report. Once the relevant changes have been made, head back to the Income Stream Payment: Validation screen at any point in time to process the validation again.

3. Where the validation has passed, select to proceed with lodgment.

Alternatively, select to review transactions in the previous step or select to return to the PAYG Payment Summary Dashboard.

	All validated PAYG payment summaries can be accessed at any time under the Awaiting Lodgment button from the PAYG Payment Summary Dashboard.
	Navigate to Connect \| Lodgement to locate all validated forms across all entities.

Lodge PAYG Payment Summaries

Once the validation is completed users will be taken to the Income Stream Payment: Lodgement screen and will be able to:

Generate the Lodgement Declaration which is required when the PAYG Payment Summary is being lodged electronically.

1. Click the checkbox to the left of the transactions to include in the lodgment.

2. Select to lodge the PAYG Payment Summaries to the ATO.

Alternatively, select to validate transactions in the previous step or select to return to the PAYG Payment Summary Dashboard.

3. Once the PAYG Payment Summary data has been lodged electronically, head back to PAYG Payment Summary Dashboard to print a copy to give to the member taxpayer at the end of the financial year. This information will be required by the member to complete their Individual Tax Return.

	All validated PAYG payment summaries can be accessed and lodged at any time under the Awaiting Lodgment button from the PAYG Payment Summary Dashboard.
	Navigate to Connect \| Lodgement to locate all lodged forms across all entities.

Printing Reports

From the Main Toolbar navigate to the Compliance menu.
Select PAYG Payment Summary.

Select Print.

The PAYG Summary Report Settings will appear:

Form Type	Select Income Stream.
Status	Print the report detailing transactions based on the following statuses: Validated Validation Failed Incomplete Lodged Lodgement Failed Reviewed Lodged (Manually)
Financial Year	Print the report based on the Financial Year.
Member(s)	Print the report detailing transactions under a particular member.

Use the reports as the reference to review the details pre-filled in the PAYG Payment Summary Dashboard and make changes where necessary.

Frequently Asked Questions

1. What does Non-Capped Defined Benefit Income Streams and Capped Defined Benefit Income Streams constitute?

Non - CDBIS	CDIBS
Account-Based Pension TRIS (Retirement Phase) TRIS (Accumulation) Market Linked Pension (post 01/07/2017) Allocated Pension	Complying Pension Market Linked Pension (pre 01/07/2017) Market Linked Reversionary Pensions where the member was equal to or greater than 60 years old at the date of death Complying Reversionary Pensions where the member was equal to or greater than 60 years old at the date of death

2. Cannot prepare the PAYG payment summary for a Non-Capped Defined Benefit Income Streams with an untaxed element where the member is 60 years or older on the payment date of the drawdown?

Simple Fund 360 does not support preparing the PAYG payment summary for a Non-Capped Defined Benefit Income Streams with an untaxed element where the member is 60 years or older on the payment date of the drawdown.