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SMSF Annual Return

 

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Help File: SMSF Annual Return
Product(s) Simple Fund
Article ID 9732
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Purpose

To input and confirm the data required to prepare the SMSF Annual Return.


Simple Fund will automatically calculate the amounts for most item labels from the ledger. Users will therefore only need to input the data that Simple Fund cannot calculate. For example, time taken to complete return.


Self Managed Super Funds (SMSFs) will use an all-in-one annual return form for income tax, regulatory and member contribution reporting for the 2008 and future financial years.


Screen Access

From the Ribbon Toolbar:

On the Home tab, in the Fund Reporting group, click Financial Reports


Financialreporticon.gif


Select: Smsfaricon.gif


Screen Prompts

Hint.gif Note: Depending on which financial year you have selected, different options will be available to match the return requirements for that year. Ensure you always refer to the tax return instructions for that particular year before lodging your return.

To view the information contained within each section of the return, click on one of the tabs.


Click Save.gif Save to save any changes made to the return.


Click Edit.gif Edit to directly access the Fund Details screen and confirm or change the front cover details of the tax return.


Click Aicon.gif Schedule A Other Attachments to attach extra information to be appended to the tax return.


Click C.gif Capital Gains Schedule to confirm the data calculated by Simple Fund for this schedule.


Click D.gif Capital Allowances/Depreciation Tax Data to confirm the data calculated by Simple Fund or add further data for the Capital Allowances Schedule.

Hint.gif Note: This icon will not be available from Annual Return 2013 onwards as schedule has been discontinued for 2013 financial year.


Click L.gif Losses Schedule to confirm the data calculated by Simple Fund or add further data for this schedule.


Click Preview.gif Preview to preview the tax return.


Click Print.gif Print to print the tax return.


Click Book green.gif (first one from the left) to view the latest SMSF Annual Return Instructions.


Click Book green.gif (second one from the left) to access the ATO's ELS Guide online.


Click Tofa.gif to view the TOFA transitional election form.


Click Book green.gif (first one from the right) to access the TOFA instructions.


Clicking on any Label red.gif red label in tax return and regulatory return screen will provide a transaction report(s) that makes up the total.


If any data is changed or additional data input into these above schedules, upon saving, Simple Fund will update the main tax return data with the required changes and inform the user of what has been updated.


SMSF Annual Return

There are some important things you need to be aware of when completing the SMSF Annual return:

  • You must provide details for all members of a fund, regardless of whether the member made any contributions during the year covered by the report. (see section F & G )
  • An approved auditor must complete an audit of the fund before you submit the return. The auditor’s details must be included on the SMSF annual return form. Simple Fund will use the Audit Report Date in the Financial Reports | Audit Report screen to populate Question 6 - Date Audit was completed on the SMSF Annual Return.


Smsf1.gif


  • The SMSF levy is included in the SMSF’s tax assessment calculation at Section D Label L. All SMSFs are required to pay the levy even if the fund is fully in pension mode and there is no tax liability. From 2013 Financial Year, changes have been made to the way supervisory levy is paid. Refer to FAQ 417 for more information.


Simple Fund will determine which Annual Return needs to be prepared and lodged based on the fund type selected in Fund Details | Details screen.


Simple Fund will prepare the Annual Return if, in the Fund Details screen Self Managed Super Fund ( ATO ) has been selected.


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For SMSFs from 2008 onwards, 'Regulatory' and 'MCS' buttons will be inactive and a Smsf ar1.gif button will replace the Taxreturnicon.gif button.


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The SMSF Annual Return contains the following sections:

From Year 2008 to Year 2012
SECTIONS
HEADINGS
A
Fund Information
B
Income
C
Deductions
D
Income tax calculation statement
E
Losses
F & G
Member Information
H
Assets and Liabilities
I
Taxation of Financial Arrangements (TOFA)
J
Regulatory Information
K
Other Information
L
Declaration
From Year 2013 onwards
SECTIONS
HEADINGS
A
Fund Information
B
Income
C
Deductions and non-deductible expenses
D
Income tax calculation statement
E
Losses
F & G
Member Information
H
Assets and Liabilities
I
Taxation of Financial Arrangements (TOFA)
J
Other Information
K
Declaration

Smsfardatasections.gif


Hint.gif Note: If you cannot claim a deduction for an expense (e.g. Fines), you need to set the Tax Return Label to Not applicable - Permanent Difference. Refer to Task 1.3 of the Simple Fund Advanced Training Manual for further information.
.

Annual Return- Section F and G

All SMSF members contributions and other member transaction information must be reported under Section F and G. Section F & G can be accessed from the Financial Reports | SMSF_AR | Members tab.

Simple Fund will calculate Section F and G section during the Create Entries process. If you make any subsequent changes to contributions or member account transactions you should reverse and recreate entries so that the contribution information is updated. There is also a Recalc.gif Recalculate button on the Section F & G screen which can be used if you change member standing information such as a member's Name, Title, Date of Birth , Tax File Number in the Members or People screen and wish to refresh the data.


Section F

In section F report all current members at 30 June, regardless of their account balance. You also need to include all members who have received a payment of an income stream benefit from the SMSF and who hold an interest in the fund at 30 June of that financial year.


Section G

Section G is used for reporting:

  • deceased members
  • all former members who left the fund during the year, for example by either rolling out all of their benefits or being paid all of their benefits as a superannuation lump sum, and
  • any other members who cannot be included in section F



Year 2013 onwards

Section f32.gif


The table below shows all the labels in section F and G, a description of the label and the fields & accounts related to these labels.

LABELS
DESCRIPTION ACCOUNTS/ FIELDS
A
Employer Contributions

Includes contributions made by an employer on behalf of an employee who is a member of an accumulation fund.

5xx/011, 5xx/012, 5xx013, 5xx014, 5xx/015, 5xx/016, 5xx/017,5xx/018, 5xx/019, 5xx/020

Member Component = Employer Contribution.

A1
ABN of Principal employer

If more than one employer has contributed to the members account, the ABN of the employer who has made the greater total contribution will need to be entered in this label.

Picked up from Employer Details tab in the Members screen.
B
Personal Contributions

Includes contributions made to the SMSF by the member

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Personal contribution (non concessional) and Personal contributions (non deductible)

C
CGT small business retirement exemption

The amount of CGT small business retirement exemption is shown here. The small business retirement exemption amount includes up to $500,000 of capital gains that are disregarded under the CGT small business retirement exemption.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = (CGT) cap: small business retirement exemption

D
CGT small business 15 Year exemption amount

Capital proceeds from disposals that qualify for the small business 15 year exemption.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = (CGT) Small business 15 year exemption

E
Personal Injury Election

This amount includes personal injury payment amounts that have been elected to be excluded from the non-concessional contribution cap. The amounts you include at this label must arise from: a structured settlement payment, an order for a personal injury payment, or a lump sum workers compensation payment.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Personal Injury election

F
Spouse/Child Contributions

Contributions made by the members spouse or contributions made on behalf of a member under 18 years of age.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Spouse & Child contributions

G
Other third party contributions

Contributions can be made by anyone on behalf of the member ie: a relative, a spouse living separately on a permanent basis and any other third party other than an employer.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Other Family and Friends Contributions

I
Assessable foreign superannuation fund amount

'Amounts transferred from a foreign superannuation fund or scheme that exceeds the amount vested in the member at the time of transfer that is included in the assessable income of the SMSF.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Assessable foreign fund

J
Non- Assessable Foreign Fund amount

Amounts transferred from a foreign superannuation fund or scheme that is not included in the assessable income of SMSF.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Non-assessable foreign fund

K
Transfer from reserve: Assessable amount

Assessable amounts transferred from reserves.

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Transferred from reserves : Assessable

L
Transfer from reserve: non-assessable amount

Non assessable amounts transferred from reserves

5xx/011, 5xx/012, 5xx013, 5xx/015, 5xx/017, 5xx/016, 5xx/018, 5xx/019, 5xx/020

Member Component = Transferred from reserves: Non-assessable amount

M
Other Contributions

Any other contributionsreceived by the members but not reported in other label can go into this label

5xx/011, 5xx/012, 5xx013, 5xx014, 5xx/015, 5xx/016, 5xx/017,5xx/018, 5xx/019, 5xx/020

Member Component = Contributions to Previous Non Complying Fund, Non Mandated Contributions and Govt Co Contributions "

N
Total contributions

Total of all contribution labels

A+B+C+D+E+F+G+H+I+J+K+L+M
O
Allocated earning or losses

Allocated earnings or losses derived by the SMSF's investments and attributed to the member for the financial year. Allocated gains and losses from Assets should also be shown at label O.

All allocated earnings or losses derived by

the SMSF’s investments and attributed to this member for the financial year. Also includes any income tax expense and item not specified at other labels. Can also include adjustments required for transfers in.

P
Inward Rollover amounts

All amounts that the member has transferred into the SMSF from another superannuation fund, retirement savings account (RSA), Deferred annuity or approved deposit fund (ADF) can be entered in at this label.

5xx/021, 5xx/022, 5xx/023, 5xx/024, 5xx/025, 5xx/026.
Q
Outward Rollover Payments

All amounts that the member has transferred out of the SMSF to another superannuation fund, RSA, Deferred annuity, or ADF can be entered in at this label.

5xx/091, 5xx/092, 5xx/093, 5xx/094, 5xx/095, 5xx/096.
R1
Lump Sum Payment

All lump sum payments and benefit payments made to the member during the year is entered into this label.

5xx/081, 5xx/082, 5xx/083, 5xx/084, 5xx/085, 5xx/086, 5xx/150, 5xx/151, 5xx/152, 5xx/153, 5xx/154, 5xx/155.
Lump Sum Code

Select Lump Sum Code to indicate the type of lump sum payment or benefit payment that have been processed.

If there are no amounts recorded in Label R1, then the drop down box is automatically selected as 'Not Applicable' and greyed out. When an amount have been generated into Label R1, Simple Fund will select either code A or code B base on member's age. If code is neither Code A or Code B, click Dowards.gif to select other code.

A = when member's age is above 60 at the end of financial year.

B = when member's age is below 60 at the end of financial year.

C = when death benefit payment is made to a dependant.

D = when death benefit payment is made to a non-dependant.

E = when payment is made for terminal medical condition benefit.

F = when lump sum benefit type is not specified by other codes.

G = when release authority payment is made.

H = when lump sum benefit is paid to a KiwiSaver scheme.

Select from

A - Life benefit > 60 yr

B - Life benefit < 60 yr

C - Death benefit (dependant)

D - Death benefit (non-dependant)

E - Terminal medical

F - Other

G - Release authority payment

H - Benefit to KiwiSaver

R2
Income Stream Payment

All pension payments made to the member during the year is entered into this label.

5xx/055, 5xx/059, 5xx/065, 5xx/068, 5xx/075, 5xx/078
Income Stream Code

If there are no amounts recorded in Label R2, then the drop down box is automatically selected as 'Not Applicable' and greyed out. When there have been pension payment processed during the year, Simple Fund will select the code base on the type of member's pension income stream.

M = pension income stream for a member above 60 years old.

N = pension income stream for a member below 60 years old.

O = when member is on transition to retirement income stream.

P = death benefit to a dependant where the member died after age 60 or recipient is over 60 years old

Q = death benefit to a dependant where the member died before age 60 or recipient is under 60 years old

R = other type of income stream.

Select from

M - Life benefit > 60 yr (other than transition to retirement)

N - Life benefit < 60 yr

O - TRIS

P - Death benefit > 60 yr

Q - Death benefit < 60 yr

R - Other

S
Closing Account Balance Sum from Transaction: 5xx/001 through to 5xx/096

Annual Return - Section H

The Section H of the SMSF Annual return is generated by Simple Fund from the asset and liability regulatory labels of the fund set up in the Chart of Accounts. Provided clients have used the correct Asset and Liability Regulatory Return Labels the totals will balance and agree with the asset and liability values shown in the Statement of Financial Position (Balance Sheet) at 30 June.


Capital gains tax (CGT) schedule

A Capital Gains Tax schedule must be completed in conjunction with SMSF Annual Return if during the income year either of the following occurred:

  1. Where capital gains or losses, other than capital gains or losses from a Forestry managed investment scheme interest, exceed $10,000; or
  2. Where a fund has any capital gains or losses from a Forestry managed investment scheme interest.


The Capital Gains Schedule includes labels to accommodate Forestry managed investment scheme interest. The CGT treatment is the same as for any other CGT asset.


The Capital Gains Schedule includes the following labels in:


PART A – Current Capital gains

Non-Active Assets.

Y
Capital gains Indexation
Z
Capital gains Discounted
A
Capital Gains other

Active Assets.

B
Capital gains Indexation
C
Capital gains Discounted
D
Capital Gains other

Part B – Current year Capital losses

T
Forestry Investment

Forestry Managed Investments

There are new tax return labels and regulatory labels for asset, income and expense accounts for Forestry Managed Investments in Chart of Accounts.

Clients will be required to set up an account under Managed Investments (Australia) in the Chart of Accounts. The Tax and Regulatory labels for the asset, income and expense will be automatically set in Chart of Accounts. The labels are required to identify these assets for the Income Tax Return.


Investment Account – 747/00X

  • Tax Return label – Not applicable – Permanent difference
  • Regulatory label - Assets - Forestry managed investment scheme interest
  • Clients would need to select Income Type as Other income and tick Subject to CGT?

When you create a new 747 Investment Account with the Regulatory Label set to Assets - Forestry managed investment scheme interest, select the income type as Other Income. Simple Fund will automatically create a 265/XXX income account with tax return label Income - Forestry managed investment scheme (X1) and regulatory label to Income - Managed investment.


Income Account – 265/00X

Tax return label – Income - Forestry managed investment scheme (X1)

Regulatory label - Income -Managed Investment.


A linked expense account will be created in the 375/XXX with the tax return label set to Expense - Forestry managed investment scheme (U) and regulatory label to Expenditure - Admin and invest expenses


Expense Account - 3XX

Tax return label – Expense 'Forestry managed investment scheme income'

Regulatory label - Expense - Managed Investments.

Hint.gif Note: For a list of the tax changes for 2013, refer to the Simple Fund 2013.2 Release Notes.