Welcome to ESUPERFUND's May Newsletter.
In this issue, we assist you with understanding your income tax assessment, and address a few frequent questions regarding this.
Next, we inform you of a few updates from the ATO.
In addition, we notify you of the types of contributions an SMSF can accept for its Members.
Client Services Manager
Once our office has completed the annual compliance documentation for your SMSF, you will receive a notification message in your Client Portal Inbox with the subject "Please Review and Sign Compliance Documentation".
In order to understand how your SMSF's income tax payable/refundable amount is calculated, please refer to the Tax Return (pages 4~7) included within the compliance documentation. You can access the Tax Return via the ESUPERFUND Client Portal under the menu tab "Compliance – Annual Reports".
An 'SMSF tax rates' summary can be found on our website here.
Should you have any further questions, please refer to the following Q&A's:
The Tax Return is prepared for income tax purposes while the Financial Statements are prepared for accounting purposes.
Any income that is not included on the Tax Return (although it appears on the Financial Statements for accounting purposes) will not be taxed.
For example, unrealised Capital Gains (i.e. from assets that have appreciated in value but have not been sold) are reported as Income on the Financial Statement for accounting purposes. However, they are not reported as Income on the SMSF Tax Return and therefore are not subject to income tax assessment.
Any Franking Credits, Foreign Credits, and TFN withholding tax offsets that the SMSF is entitled to receive are claimed on the SMSF's Tax Return / Section D. These credits have been used to offset your Fund’s income tax liability to determine whether there is an additional tax payable or a net tax refund.
The total PAYG instalments paid for the year are claimed on the SMSF's Tax Return / Section D. They have been used to offset your Fund’s income tax liability to determine whether there is an additional tax payable or a net tax refund.
Capital Losses will firstly be used to offset realised Capital Gains (if any). If there is a Net Capital Loss, it will be carried forward to later Financial Years to offset future Capital Gains when assets are sold.
The Net Capital Loss cannot be used to offset other types of assessable income (e.g. dividends, interest and concessional contributions etc.). These earnings are still subject to income tax assessment.
New ATO Advice and Guidance Product: SMSF Regulator's Bulletin (SMSFRB)
The ATO has created a new public advice and guidance product specifically for SMSF Trustees and their advisors, called an SMSF Regulator's Bulletin (SMSFRB).
This product will provide targeted and timely updates about new, or emerging, superannuation regulatory and income tax arrangements that pose potential compliance risks for the SMSF sector.
Follow ATO on Social Media
You can connect with the ATO on LinkedIn, Twitter and Facebook to:
There are rules for the types of contributions an SMSF can accept for members. Before accepting a contribution, Trustees must make sure that the SMSF is allowed to accept that type of contribution for the member.
The types of contributions your SMSF can accept are restricted by a number of factors:
For more information, please visit our website here.
We also advise that you can view your Total Superannuation Balance as well as the remaining Bring Forward Non-concessional Contributions Cap using the ATO online services through myGov.
Should you have further queries, please contact the ATO on 13 10 20 directly.
ESUPERFUND handles all the compliance aspects of the SMSF, and provides a framework for you to choose how to invest your money. It is a good service because it gives you complete control over how your Super is invested. I am currently into my 7th year with ESUPERFUND, and although it took me a few years to determine how I wanted to invest, I now have a 15-year investment plan to generate assets for a self-funded retirement.
ESUPERFUND Pty Ltd as Trustee for ESUPERFUND Trust ABN 37 842 535 715
General Advice Warning
The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives,
financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products:
This applies equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND.
Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product.
We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website.
While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.
When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an
ATO Supervisory Levy
Company Trustee Setup Fee (where applicable)