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Regular Member
 
Group: Forum Members
Last Login: 27/05/2010 3:22:25 PM
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| 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
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MySF Administrator
Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
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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
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Regular Member
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Last Login: 4/08/2010 12:04:38 AM
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| Any progress on the segregation of "cash" assets.
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Regular Member
Group: Forum Members
Last Login: 4/08/2010 12:04:38 AM
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| Is my previous question being considered?
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MySF Administrator
Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
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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
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Regular Member
Group: Forum Members
Last Login: 27/05/2010 3:22:25 PM
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| Hi 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
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MySF Administrator
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Last Login: 17/05/2010 6:31:15 PM
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Hello Ron,
Thank you for your comments.
Your approach definetly sounds correct and is a good way to achive the desired outcome.
Regards,
MySF
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Master Member
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Last Login: Yesterday @ 8:32:40 PM
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Hi Ron,
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.
and
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.
So, out of interest, has this approach allowed you to avoid the expense of an annual actuary's certificate?
Regards
Neil H.
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Regular Member
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Last Login: 27/05/2010 3:22:25 PM
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| 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
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Regular Member
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Last Login: 23/08/2010 6:27:09 PM
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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
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