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RE: Segregated Assets

PP Super — Mon, 18 Jan 2010 04:02:10 GMT

Hi Kat,

I don't have any pension accounts yet, so my interest is purely from a forward-planning point-of-view. Similarly, I have not studied the SIS legislation on this area in detail.

However, I do note that entities purporting to be Superannuation experts are still advising that these certificates are required where assets are not segregated, eg Partners Services [url]http://www.partnerservices.com.au/[/url] advise:

[quote]If the trustees elect not to separate assets they will be required to obtain an
annual actuarial certificate to confirm the proportion of the fund’s earnings that
are tax exempt.[/quote]in their [b][i]SMSF Post June 2009 Guide[/i][/b]:[url]http://www.partnerservices.com.au/articles/articlefiles/115-SMSF%20Post%20June%202009%20Guide.pdf[/url]

Disclaimer: I have no connection or experience with Partners Services and make no claims about the quality of their advice - this is just one piece of info which I found online.;)

If you can point us to any authoritive advice which indicates that you DON'T need an actuarial certificate - even if you have not segregated your assets - that would be good to see.

Regards,

RE: Segregated Assets

katfish2 — Sat, 16 Jan 2010 15:54:51 GMT

Hey all,
I thought the 2007 legislation removed the need at all for an annual actuarial certificate and just put the requirement that the auditor notify the ATO of any contraventions? If i'm wrong, can you point me to the specific section in the SIS?
Kat

RE: Segregated Assets

atkins12 — Fri, 15 Jan 2010 23:07:04 GMT

Hi Neil

It did in 2008. My 2009 return is still with my accountant. I will let you know the outcome in a later post.

Regards ... Ron

RE: Segregated Assets

PP Super — Tue, 12 Jan 2010 19:45:57 GMT

Hi Ron,

[quote]I am just about to switch one of our fund members into pension mode and want to segregate the assets to avoid the expense of an annual actuary's certificate.[/quote]
and
[quote]While it is not possible to segregate cash between members, I adopted a workaround for interest received for cash assets. I created individual "Interest Received" accounts for each member. Each account is assigned to a specific member in the setup step and given a name indicating the member and if the member if in accummulation or pension mode. Those accounts for members in pension mode are tagged non-taxable.[/quote]

So, out of interest, has this approach allowed you to avoid the expense of an annual actuary's certificate?

Regards

RE: Segregated Assets

MySF2 — Tue, 12 Jan 2010 15:42:41 GMT

Hello Ron,

Thank you for your comments.

Your approach definetly sounds correct and is a good way to achive the desired outcome.

Regards,

MySF

RE: Segregated Assets

atkins12 — Mon, 11 Jan 2010 21:24:59 GMT

While it is not possible to segregate cash between members, I adopted a workaround for interest received for cash assets. I created individual "Interest Received" accounts for each member. Each account is assigned to a specific member in the setup step and given a name indicating the member and if the member if in accummulation or pension mode. Those accounts for members in pension mode are tagged non-taxable.

This solution has worked for me through EOY processing and my accountant is satisfied with the reports produced. The interest received was directed to the members as required and taxed depending appropriately as per their pension status.

Regards ..... Ron

RE: Segregated Assets

MySF2 — Mon, 11 Jan 2010 16:19:22 GMT

Hi,

Apologies for the long delay in responding. This is an issue that has been raised a number of times, and is a very difficult one to solve, if not impossible.

The core of the issue is not really pegging a bank account to a member, since that is fairly simple, but the practical problem of identifying and segregating interest income earned by cash in one account versus another.

Unfortunately the segregation of the income earned by bank accounts to different members would require wholesale changes to the way that cash is handled in the system. 'Cash' at the moment is the sum total of all bank account balances on a given date (and in the case of allocations the percentage of managed assets allocated to cash). When you record interest receipt on a bank account it is recorded as being earned by the 'Cash' asset, rather than any specific bank account.

A better way of handling this may be to assign the interest income as being pegged to a specific member using the dropdown list under the 'Member' heading on the Cash Receipt screen. This would require far fewer changes and would not require users to re-learn any part of the system. This is the path we are investigating now and hope to report progress in the next few weeks.

Please let us know your comments or views on this proposed solution.

Regards,

MySF

RE: Segregated Assets

bidgee4 — Mon, 11 Jan 2010 15:55:13 GMT

Is my previous question being considered?

RE: Segregated Assets

bidgee4 — Tue, 08 Dec 2009 18:40:24 GMT

Any progress on the segregation of "cash" assets.

RE: Segregated Assets

MySF2 — Sun, 02 Mar 2008 15:57:40 GMT

Hi,

At present it is not possible to segregate bank accounts to a particular member. Any interest receipts tagged against the 'cash' asset are not actually tagged against a particular bank account, so segregating the bank accounts may not be sufficient to achieve the desired outcome.

We will try and find a way to introduce a mechanism to deliver the results that you ar after. In the meantime the best option is probably to override the profit allocations calculated by the software.

Regards,

MySF

Segregated Assets

atkins12 — Sun, 02 Mar 2008 00:01:40 GMT

Hello

I am just about to switch one of our fund members into pension mode and want to segregate the assets to avoid the expense of an annual actuary's certificate. This is easy for the Financial Assets, but the fund has some fixed interest deposits which were set up as additional bank accounts.

How is it possible to segregate "cash" assets and then ensure that the income is treated as non-taxable to benefit from the pension status. The pension member is the major contributor to the fund.

Regards ....... Ron