The apportionment of income between pension and non pension assets. Income from assets required to support the payment of pensions of any sort is tax exempt. Unless the assets of the Fund are “segregated”. Tax law requires annual actuarial certification of the proportion of income attributable to the pension assets. Income from assets comprising reserves is not tax exempt and needs to be separately identified.
The practice has developed a workbook, which can be used by accountants and fund administrators to provide the necessary information for a tax certificate and simultaneously calculate the tax free proportion and, if required, members’ final balances. Clients can populate the workbook and send it to the practice for final checks and certification. While not valid until signed, the workbook provides information to allow clients to continue preparing the accounts and returns of funds in anticipation of the final signed certificate. For the workbook to operate users need to have macro settings at low or medium security. An example is available.
See Practice Areas>Self managed superannuation funds for fees and the practice’s information needs.