How to report contributions that you roll over - self-managed superannuation funds

The following practical and detailed examples are to assist you when, as a trustee of a self-managed super fund (SMSF) or the trustees' authorised agent, you are completing:

• the Rollover benefits statement (NAT 70944) when you make a rollover to another super fund
• your Self-managed superannuation fund annual return (NAT 71226) after the end of the financial year in which you made a rollover - in particular, sections F and G of that return.

These examples must be read in conjunction with the:

• Self-managed superannuation fund annual return instructions (NAT 71606)
• instructions accompanying the Rollover benefits statement (RBS).

Refer to these examples only once you have read and understood the instructions for both of these forms.

Contributions need to be reported accurately after a rollover

Information about the contributions made to your SMSF during a financial year must be reported to us for each member to allow us to calculate and pay super co-contributions for them (if eligible) and assess excess contributions tax if they exceed contributions caps.

Penalties may apply if you make a false and misleading statement in an SMSF annual return or RBS by reporting your members' contributions inaccurately to another fund or to us.

Usually you report the contributions after the end of the financial year directly to us in your Self-managed superannuation fund annual return (SAR), but when a rollover is involved the reporting requirements can be less straightforward.

If you have rolled over all or a part of a member's balance to another super fund, you report information about the rollover to the receiving fund on an RBS. The RBS includes details of the contributions made for the member during the financial year to the extent those contributions were included in the amount rolled over. The receiving fund, as the new holder of the contributions, then reports these contributions details to us after the end of the financial year, along with details of any further contributions made for that member to their new fund.

You must apply a 'proportioning rule' to calculate which contributions are reported on a rollover benefits statement and which are reported in your annual return. The following are practical examples of the use of the proportioning rule and are based on the method explained in Taxation Ruling TR 2010/1, example 10, paragraphs 94-99.