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  • Section C: Rollover transaction details

    Note: Do not complete section C if you are a trustee of a non-complying fund.

    12 Service period start date

    The service period start date is usually either:

    • the first day of the first period of employment that the lump sum relates to if the member was employed when some or all of the lump sum accrued
    • the earlier of the following if the member was not employed when some or all of the lump sum accrued
      • the date when the member joined your fund
      • if the lump sum is attributable to an earlier lump sum previously rolled over, the first day of the service period of the earlier lump sum.
       

    13 Tax components

    Complete the following labels:

    • Tax-free component
    • KiwiSaver tax-free component
    • Taxable component which may include both the            
      • element taxed in the fund
      • element untaxed in the fund
       
    • Tax components total.

    The sum of the four tax components must be equal to the tax components total. The amount of the tax components total must be equal to the amount of the rollover being paid.

    Make sure you apply the proportioning rule to the tax components if you are not rolling over the member's full interest in your super fund.

    See also:

    The tax components help the receiving fund work out the amount of income tax the member will be liable for when they are paid a benefit from the amounts being rolled over.

    The tax-free component consists of the crystallised and contributions segments of the rollover benefit and the taxable component is the total value of the rollover less the value of the tax-free component and the KiwiSaver amount. You must maintain a record of any KiwiSaver amounts, either paid directly from New Zealand under the Trans-Tasman retirement savings portability arrangements, or paid to you by another super fund in a previous rollover transaction.

    The KiwiSaver tax-free amount is the entire KiwiSaver amount excluding any part of the contribution the member has previously shown to be a returning Australian-sourced amount – which is generally an amount that was previously received by a participating KiwiSaver scheme from an Australian super provider and was originally accrued in an Australian complying super fund.

    Note: A KiwiSaver amount cannot be rolled over to a self-managed super fund (SMSF).

    See also:

    Rollovers from unfunded schemes

    An element untaxed in the fund only arises in rollovers from certain unfunded schemes, usually public sector super funds. This element cannot exceed the untaxed plan cap for the particular financial year.

    If you are rolling over an amount from an unfunded scheme, you must withhold from any amount in excess of the cap at the top marginal tax rate plus the Medicare levy and remit that amount to us. You then add the amount that remains after the tax is withheld to the tax-free component of the rolled over amount.

    The cap is indexed each financial year.

    See also:

    Example

    On 6 January 2014, John asked his unfunded super scheme to roll over his super interest of $1.5 million, being an element untaxed in the fund. The untaxed plan cap for 2013–14 is $1,315,000. Because the rollover exceeds $1,315,000, the scheme withheld tax of $86,025 which is 46.5% of the $185,000 in excess of the $1,315,000 cap.

    The scheme then rolled over the remaining entitlement of $1,413,975 ($1.5 million less tax withheld of $86,025) and reported the following amounts on the RBS to the receiving fund with the payment:

    • a tax-free component of $98,975
    • an element untaxed in the fund of $1,315,000
    End of example

    14 Preservation amount

    Complete the following labels:

    • Preserved amount
    • KiwiSaver preserved amount
    • Restricted non-preserved amount
    • Unrestricted non-preserved amount
    • Preservation amounts total.

    Note: The sum of the four preservation amounts must be equal to the preservation amounts total. The preservation amounts total must equal the amount of the rollover being paid.

    Last modified: 27 Jun 2018QC 28175