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RE: Correct method for new member benefit rollover

mysf — Thu, 20 May 2010 18:48:31 GMT

Hello,

At present MySF Manager does not perform the calculations for you and the old categories are still displayed on the screen.

We will update the ETP Rollin screen as part of a future update which will include a crystallised segment calculation and also the new categories.

Best Regards,

MySF

RE: Correct method for new member benefit rollover

PP Super — Wed, 12 May 2010 18:54:13 GMT

Hi,

Any response as to how you perform/record the crystallization calculations in MySF, as discussed in my previous post and on this ATO page:

[url]http://www.ato.gov.au/superfunds/content.asp?doc=/content/86187.htm
[/url]
Also how MySF records/tracks the new (since 1 July 2007) input categories in rollover transfers-in - as discussed in my last post.

Regards

RE: Correct method for new member benefit rollover

PP Super — Wed, 05 May 2010 05:14:28 GMT

Hi,

I hope you don't mind me weighing in with a few observations.

I think the confusion may stem from the changes to the way super benefits were categorized, as discussed on this ATO page: [url]http://www.ato.gov.au/superfunds/content.asp?doc=/content/86187.htm[/url]:

From 1 July 2007, a super benefit, is made up of a:

tax-free component which includes a

crystallised segment, and
contributions segment.

taxable component which includes an element

taxed in the fund, and/or
untaxed in the fund.

Where the crystallised segment includes the following existing components of a superannuation interest that are consolidated into the tax-free component the:

concessional component
post-June 1994 invalidity component
undeducted contributions
capital gains tax (CGT) exempt component, and
pre July 1983 component.

As the ATO says, for a:[quote]superannuation interest in accumulation phase as at 1 July 2007, the crystallised segment will be calculated as at 30 June 2007. Super funds will have until 30 June 2008 to calculate the crystallised segment. The contributions segment will be calculated when a super benefit is paid to the member.
[/quote]So we should all have calculated the crystallized segment by now, otherwise:[quote]Super providers that do not ensure the crystallised segment is calculated by 30 June 2008 may be subject to a penalty up to $550.[/quote]
I haven't updated my MySF recently, but unless the ETP treatment has changed since Version 7, MySF provides transfer-in accounts based only on combinations of two factors:

The preservation status of the payment, and
Whether the payment is classed as taxable income to the Fund.

The other level of classification, ie the tracking of ETP tax-free components and taxable components does not seem to be updated for the ETP form which still refers to the old categories eg:

concessional component
post-June 1994 invalidity component
undeducted contributions
capital gains tax (CGT) exempt component, and
pre July 1983 component.

rather than the new categories, ie:

tax-free component which includes a

crystallised segment, and
contributions segment.

taxable component which includes an element

taxed in the fund, and/or
untaxed in the fund.

So whilst it is clear (to me, and as per your reply) that the accounts to be used to post the funds to are determined by:

The preservation status of the payment, and
Whether the payment is classed as taxable income to the Fund.

It is not clear how MySF tracks the other level of classification (as should presumably be gatherered by the second ETP screen) which, I believe is where this problem with the "taxable component" is arising.

As an adjunct to this, whilst I have done the crystallization calculation for my Fund (on an Excel spreadsheet and working from my original ETP rollover forms for inward transfers) I cannot see how I should process this in MySF - is there a "crystallisation" utility (which would presumably need to be done as part of the rollover from 06-07 to 07-08).

I hope the above makes sense and that I have not missed functionality which is already provided by MySF.

Regards,

RE: Correct method for new member benefit rollover

MySF2 — Tue, 04 May 2010 23:59:55 GMT

Hello,

If the $100K was an amount that counts as taxable income to the SMSF in the current year then this is correct. It should be posted to 4170 and it will be taxed at the applicable rate.

Please do check the wording in the statement. "Taxed" may mean that it has been taxed already before going into the fund which would normally mean that it will not be taxed in the fund (post tax contribution).

If you are confident that the $100K should not be taxed in the fund then you can journal this amount to a different account after the ETP, or place it into a different field within the ETP screen.

Normally you should do exactly as you have done, which is to enter the amounts as they appear in the statement. There is not a separate guide to ETPs.

Please let us know if this helps.

Thank you,

MySF

RE: Correct method for new member benefit rollover

BDSMSF — Tue, 04 May 2010 01:43:20 GMT

I simply took the rollover details off the rollover benefit statement.

eg. rollover component tax free $1000 posted it as transfer in t/free 4715

rollover component taxed $100000 posted it as transfer in taxed 4710.

INput this as an ETP rollin and when I do the YE rollover it calcs tax on the full $100K even though I enter the employer contributed amount in the following screens as eg. $5,000

Is ther an "idiots"guide to entering memebr benefit rollins? If not, which accounts should I be assigning which amounts to please?

RE: Correct method for new member benefit rollover

MySF2 — Mon, 03 May 2010 17:58:04 GMT

Hello,

We would like to ask for more detail on this.

Any amounts recorded to taxable income accounts will be subject to tax calculations at the year end.

Could you please let us know how you recorded this rollover and which accounts you used in this event.

Thank you,

MySF

Correct method for new member benefit rollover

BDSMSF — Sat, 01 May 2010 17:17:43 GMT

SO I have set up my fund and I have input my rollover benefit as per teh rollover benefit payment details provided by my old super fund. When I go to do a year end rollover the MySF s/w want to calculate tax on teh "taxable component" that transferred from the old fund. I'm sure I've input the detail incorrectly but not sure how what IS correct and how to correct it so I can complete the YE rollover.