• Section E: Member contribution amounts

    Attention

    Where there is no contribution amount to report at a particular question, write a single zero at that question.

    Do not include any amounts received as a result of contributions splitting.

    End of attention

    43 Employer-contributed amount

    Provide the amount of contributions made by an employer on behalf of the member. This may consist of:

    • employer contributions made to an accumulation account on behalf of employees to meet super guarantee, award or other obligations
    • contributions paid as a result of a salary sacrifice arrangement, where the member has agreed to forgo part of their future salary or wages in return for their employer providing a super benefit of a similar value
    • super guarantee charge and the taxable component of any SHASA amounts that we transferred to the provider on behalf of the member
    • for the 2012–13 financial year only – amounts reported at label 15a on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Do not include:

    • contributions made by an employer from the take‑home pay of the member (these are reported at question 46 – personal contributed amount)
    • a directed termination payment that an employer pays to a super provider on behalf of a member
    • last‑minute employer contributions that the trustee of a public sector super scheme chooses to exclude from its assessable income (these are only included at question 55 – all contributions received for the current year).

    Special requirements for CPFs for 2013

    CPFs must report at this field all employer contributions made for the member, including:

    • employer contributions made on behalf of members to meet super guarantee, award or other obligations
    • contributions paid as a result of a salary sacrifice arrangement where the member agrees to forgo part of their future salary or wages in return for their employer providing a super benefit of a similar value
    • super guarantee charge amounts and the taxable component of any SHASA amounts that we transferred to the provider on behalf of the member.

    We need this information to make correct assessments of Division 293 tax.

    Attention

    CPFs must not include at this field amounts reported at label 15 (a) on a Rollover benefits statement (NAT 70944) received from a transferor provider. Report these at question 50 – other family and friends contribution amount. In addition, amounts reported at label 15(f) on a Rollover benefits statement (NAT 70944) received from a transferor provider must be reported at the employer-contributed amount field.

    End of attention

    44 Notional taxed contributions

    Notional taxed contributions are to be reported separately from employer contributed amounts.

    The notional taxed contributions amount for a defined benefit fund must be determined in accordance with the legislation – including Income Tax Assessment Regulations 1997 (ITAR 1997) regulation 292‑170.02 to 292‑170.06. It will generally be equal to the notional taxed contributions as determined by the provider with advice from an actuary.

    However, a transitional provision, known as ‘grandfathering’, applies if the member held their defined benefit account on 5 September 2006 and certain other conditions are satisfied. Under this transitional arrangement, if the notional taxed contributions determined with advice from an actuary exceed the concessional contributions cap for the financial year, then the provider must report the amount of the member’s notional taxed contribution as being equal to the cap.

    45 Defined benefit contributions

    For each member with a defined benefit interest, the amount of any defined benefit contributions, worked out using the formula specified in the ITAR 1997 for the purposes of Division 293 tax, including regulations 293-115.05 to 293-115.20.

    In summary, these regulations provide for the following requirements.

    Funded interests

    For an accruing member with a funded benefit interest, this is the amount of the notional taxed contributions you report for the financial year (that you calculated under Schedule 1A of the ITAR 1997 for the purposes of the excess concessional contributions cap and reported at the Notional taxed contributions field) but without limiting that amount to the member’s concessional contribution cap under grandfathered arrangements.

    The amount must therefore be equal to or greater than the amount reported at question 44 – notional taxed contributions field.

    Unfunded interests

    For an accruing member with a defined benefit interest that is not a funded benefit interest, this is the amount you calculate using the method set out in Schedule 1AA of the ITAR 1997.

    Providers reporting for these unfunded interests will need to report this amount even though there may be no requirement to report notional taxed contributions. For a person who is a non-accruing member for the whole of the financial year, the amount of defined benefit contributions is nil and at this field write a single zero.

    Previously the Defined benefit contributions field was called Notional employer

    contributions for MCS lodgments for the 2012–13 financial year. For the 2012-13 financial year, this field must be a single zero.

    For accounts that do not relate to a defined benefit interest this field must be nil.

    For the 2013-14 financial year, you may add a single zero for this field for each member with a defined benefit interest and then amend the MCS by 31 January 2015 to provide the information in accordance with the regulations.

    For the 2013-14 financial year and later years, this amount must be equal to or greater than the amount reported at the Notional taxed contributions field. However, this amount is nil for non-accruing members and accounts that do not relate to defined benefit interests.

    46 Personal contributed amount

    Provide the amount of personal contributions made by a member to an account in their own name, including both deducted and undeducted member contributions.

    This includes:

    • personal contributions made by an employer for and on behalf of the member from the member’s take‑home (after tax) pay
    • personal contributions a member has made to the provider on their own behalf, including those the member has or has not claimed or can or cannot claim as a deduction
    • a transfer from another fund following the release of a member’s benefits under terminal medical condition provisions that cannot be treated as a rollover super benefit during the period of certification
    • directed termination payments received on or after 1 July 2012
    • personal contributions funded by personal injury payments that are not shown under question 48 – personal injury elections
    • contributions transferred from a non‑complying fund (include all amounts transferred to the provider from a non‑complying super fund)
    • the proceeds of the sale of assets, other than amounts already shown at question 47 – capital gains tax cap election amount. If a member elected to exclude more than $500,000 under the ‘CGT cap election amount for small business retirement exemption amount’, show only $500,000 at question 47 – capital gains tax cap election amount: small business retirement exemption amount – and the excess as a personal contribution
    • for the 2012–13 financial year only, amounts reported at label 15 (b) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    This excludes:

    • any personal contributions arising from a personal injury payment that is reported at question 48 – personal injury election amount
    • any personal contributions that are reported in either field at question 47 – capital gains tax cap election amount
    • directed termination payments received on or before 30 June 2012. Any directed termination payments received on or after 1 July 2012 will be reportable in full as a personal contribution
    • super lump sum amounts from a foreign super fund or scheme
    • FHSA contributions paid by a FHSA provider and government FHSA contributions paid by us
    • contributions made by the member’s spouse, other family members or friends
    • for the 2012–13 financial year only – rollover super benefits, other than those contributions reported at label 15 (b) on the Rollover benefits statement (NAT 70944)
    Attention

    You must not report super co‑contributions paid by us at this question. These are reported at question 55 – all contributions received for the current year.

    End of attention

    47 Capital gains tax (CGT) cap election amounts

    Small business retirement exemption amount

    Provide the amount of the personal contributions which a member has elected to exclude from the non‑concessional contributions cap because of a CGT small business retirement exemption.

    The provider must treat a member’s election as invalid if it is for more than $500,000 in a financial year. In this case, report $500,000 at this question and report the amount of the contribution in excess of $500,000 at question 46 – Personal contributed amount.

    Attention

    A valid election in the approved form Capital gains tax (CGT) cap election (NAT 71161) must have been received from the member on or before the date of contribution.

    End of attention

    A capital gains tax (CGT) cap election is only valid if it is given to the provider on or before the date the contribution is made and where the provider has not been advised or become aware that the cap election is no longer valid or applicable. Where the provider subsequently becomes aware a CGT cap election is no longer valid, they must amend the MCS.

    Providers are not required to investigate this issue but they are required to report according to what they become aware of, such as advice from a member or us that an error was made or that the election is not applicable. If the member made the election after making the contribution, the CGT exemption will not apply. If the requirements for a valid election have not been fulfilled, report the contribution at question 46 – personal contributed amount.

    For the 2012–13 financial year only, include in this field amounts reported at label 15(c) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Danger

    Any amounts reported in this field should not be reported at question 46 – personal contributed amount.

    End of danger

    Small business 15 year exemption amount.

    Provide the amount of the personal contributions that a member has elected to exclude from the contributions caps because of a CGT small business 15‑year exemption.

    This may include the capital proceeds from the disposal of assets that:

    • qualify for the small business 15‑year exemption
    • would qualify for the small business 15‑year exemption, except  
      • they were pre‑CGT assets
      • there was no capital gain, or
      • the 15‑year holding period was not met because of the permanent incapacity of the member (or a controlling individual of a company or trust).
       
    Attention

    A valid election in the approved form Capital gains tax (CGT) cap election (NAT 71161) must have been received from the member. It must have been received on or before the date of the contribution.

    End of attention

    A Capital gains tax (CGT) cap election is only valid if it is given to the provider on or before the date the contribution is made and where the provider has not been advised or become aware that the cap election is no longer valid or applicable. Where the provider subsequently becomes aware a CGT cap election is no longer valid, they must amend the MCS.

    Providers are not required to investigate this issue, but they are required to report according to what they become aware of, such as advice from a member or us that an error was made or that the election is not applicable. If the member made the election after making the contribution, the CGT exemption will not apply. If the requirements for a valid election have not been fulfilled, report the contribution at question 46 – personal contributed amount.

    For the 2012–13 financial year only, include in this field, amounts reported at label 15(c) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Attention

    Any amounts reported in this field should not be reported at question 46 – personal contributed amount.

    End of attention

    The CGT cap is a lifetime cap

    The CGT cap is a lifetime cap which is indexed annually. It is the maximum amount of eligible personal contributions that a member can elect to exclude from counting towards their non‑concessional contributions cap. The CGT cap applies to all excluded CGT contributions, including all amounts reported at both fields at this question. For the 2012–13 financial year, the lifetime limit for the CGT cap is $1,255,000 and for the 2013–14 financial year it is $1,315,000.

    Example

    Barry owned a small business for 33 years. When he was 72, he started selling his business assets in preparation for retirement. He is eligible to use the small business 15‑year exemption.

    In the 2007–08 financial year, he contributed to his super fund $550,000 of the capital proceeds he received from selling some of his eligible assets. At the same time, he notified his fund that he was electing to use $550,000 of his CGT cap, under the small business 15‑year exemption, to exclude the contribution from counting towards his non‑concessional contributions for the year. Therefore, his CGT cap of $1 million was reduced to $450,000.

    In 2008–09, the super CGT cap was indexed to $1.045 million. As Barry had already claimed $550,000 of the capital, the CGT cap available to him in 2008–09 was $1,045,000 – $550,000 = $495,000.

    End of example

    48 Personal injury election amount

    Provide the amount of personal injury payments that a member contributes while notifying the provider that they are to be excluded from the non‑concessional contribution cap.

    To be eligible, the contributions must arise from:

    • a structured settlement payment
    • an order for a personal injury payment
    • a lump sum workers compensation payment, and only apply to that part of these amounts that is compensation or damages for personal injury.

    The member must have made the contribution within 90 days of the later of the following dates:

    • the date the member received the personal injury payment
    • the date the member entered into an agreement for settlement of a personal injury
    • the date on which an order for a personal injury payment was made.

    They must also have given their fund a completed Contributions for personal injury (NAT 71162) form on or before the date they made the contribution.

    Attention

    If these requirements have not been fulfilled, report the contribution at question 46 – personal contribution amount instead.

    End of attention

    For the 2012–13 financial year only, include in this field, amounts reported at label 15(d) on the Rollover benefits statement (NAT 70944) received from a transferor provider.

    Do not include in this field:

    • any personal injury amounts not elected to be excluded from the non‑concessional contributions cap (these are reported at question 46 – personal contributed amount field)
    • any amount transferred from another fund following release of the member’s benefits under the terminal medical conditions of release.

    Any amounts reported in this field should not be reported at question 46 – personal contributed amount.

    Question 49 – Spouse and child contributions amount

    Provide the contributions made for a member by their spouse or made for a member who is under 18 years old.

    Include at this field:

    • contributions made for a member by their spouse
    • contributions made for a member who is under 18 years old
    • contributions made by a FHSA provider when the payment is made because of a family law obligation – that is, any contribution received via an Application to transfer FHSA contributions to a super fund under a family law obligation (NAT 72629)
    • for the 2012–13 financial year only – amounts reported at label 15 (e) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Do not include in this field:

    • contributions made by the member’s spouse if the spouse is the employer of the member and is making the contributions for them in that capacity (these are reported at question 43 – employer contributed amount)
    • contributions made for a member who is under 18 years old if they are made by  
      • the member themselves (these are reported at question 46 – personal contributed amount)
      • the member’s employer or by someone else on behalf of the employer (these are reported at question 43 – employer contributed amount)
       
    • contributions made for a child of the contributor if that child is 18 years old or older (these are reported at question 50 – other family and friends contributions amount)
    • any amounts received on behalf of a spouse as a result of a contribution-splitting application
    • contributions made by a former spouse when the couple has separated and are now living apart on a permanent basis (other than FHSA contributions from a former spouse) – these amounts are reported at question 50 – other family and friends contributions amounts.

    A person is no longer the spouse of the member for the purposes of reporting at this question if they have notified the provider that they have separated and are living apart permanently.

    50 Other family and friend contributions amount

    This question is sometimes called ‘Other third-party contributions’. Provide the amount of contributions made for the member by relatives, friends and third parties.

    Include contributions made by:

    • a spouse living separately and apart on a permanent basis
    • the member’s former spouse
    • a parent (where the member is over 18 years old), child or other relative
    • a friend of the member
    • other third-party contributors acting under an obligation to contribute – for example  
      • an insurance company, where the member’s policy provides for payment of super contributions in the event of sickness or incapacity
      • a government agency making a super contribution under a scheme to compensate injured or incapacitated workers (such as WorkCover Victoria)
      • the ATO or other government agencies required to compensate the member in the form of super contributions for errors in their administration of the law
      • a deceased estate, where the entitlement is only to a super contribution (the member cannot direct that their share in the estate be paid to them personally)
       

    ■ for the 2012–13 financial year only – amounts reported from a transferor provider reported at label 15(f) on a Rollover benefits statement (NAT 70944). It may be referred to as ‘other third-party contributions’.

    CPFs for the 2013 financial year only must also include at this field amounts reported at label 15(a) on a Rollover benefits statement (NAT 70944) received from a transferor provider, instead of reporting these amounts at question 42 – employer contributed amount. In addition, amounts reported at label 15(f) on a Rollover benefits statement received by the CPF from a transferor provider must not be reported at this field in the 2013 MCS. Instead, report these amounts at question 43 – employer contributed amount.

    Do not include contributions:

    • made by a family, friends or another third party if they are made in that person’s capacity as the member’s employer (these are reported at question 43 – employer contributed amount)
    • already included at any field other than question 55 – all contributions received for the current year
    • made for a person under 18 years old (these are included at question 49 – Spouse and child contributions amount)
    • made under a family law obligation by a FHSA provider from the FHSA of the spouse or former spouse of the member( these are included at question 49 – spouse and child contributions amount).

    51 Assessable foreign fund amount

    Provide any part of an amount transferred to the provider from a foreign super fund or scheme that the provider must include in their assessable income under subsection 295‑200(1) of the ITAA 1997. This amount consists of the difference between what was transferred and what was vested in the member at the time of that transfer (where the transfer amount is greater).

    For the 2012–13 financial year only – include amounts reported at label 15(h) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Attention

    Do not include any amounts the provider may include in their assessable income under subsection 295‑200(2) of the ITAA 1997 when the member makes a choice in relation to certain investment earnings of the foreign fund or scheme that accrued while the member was an Australian resident (this amount is only reported at question 55 All contributions received for the current year).

    End of attention

    52 – Non‑assessable foreign fund amount

    Provide any part of the amount transferred to the provider from a foreign super fund or scheme that the provider is not required to include in their assessable income. Include also any contributions received from a KiwiSaver scheme under Trans‑Tasman retirement savings portability arrangements but only if the contribution is a KiwiSaver amount.

    Foreign fund transfers

    This amount often makes up most of a foreign fund transfer. It is the entire foreign fund transfer (other than transfers from New Zealand KiwiSaver accounts) less:

    • any amounts included at question 51– assessable foreign fund amount
    • any amounts that the member has chosen to include in the assessable income of the provider (the amount shown at section D, question 16 on the Tax payable on a foreign super transfer form (NAT 11724).

    For the 2012–13 financial year only, include amounts reported at label 15 (i) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    The following is an example with all amounts in the Australian currency equivalent.

    Example

    David had $50,000 in an overseas super fund when he became an Australian resident. Four years later, the earnings on the fund were $8,000, giving a total balance of $58,000. David chooses to have the $8,000 included in the assessable income of the provider.

    David transfers $60,000 to an Australian superannuation provider ($2,000 more than the amount vested in him at the time of the transfer).

    The provider lodges an MCS that reports the following amounts:

    • $50,000 at question 52 – non‑assessable foreign fund amount
    • $2,000 at question 51 – assessable foreign fund amount
    • $60,000 (which includes the $8,000) at question 55 – all contributions received for the current year.
    End of example

    KiwiSaver amounts

    Include any ‘KiwiSaver amount’ received from New Zealand at this field.

    The KiwiSaver amount is the entire member contribution made by a KiwiSaver scheme provider but excludes any part of the contribution the KiwiSaver scheme or member has shown to be:

    • an Australian‑sourced amount, which is generally an amount that was previously received by a KiwiSaver scheme from an Australian super provider
    • a returning New Zealand‑sourced amount, which is generally a New Zealand amount that has previously been treated as a non‑assessable foreign fund amount in Australia.

    This excluded amount is to be included only at question 55 – all contributions received for the current year.

    Australian-sourced amounts or returning New Zealand sourced amounts must not be excluded unless the provider holds supporting evidence or documentation. For example, a KiwiSaver Scheme payment Statement in relation to previous transfers from an Australian fund is strong evidence and other statements or documentation generated by a KiwiSaver scheme or transferring Australian fund would be sufficient.

    Attention

    If the member has not satisfied the requirements, then the provider does not exclude any amounts from this field.

    End of attention

    53 Transferred from reserves amounts

    Assessable amounts.

    Provide the amount that the ITAA 1997 includes as a concessional contribution because an amount was allocated to the member’s account from a reserve. The amount included by the legislation, and so reported here, may be greater than the amount actually allocated to the member’s account.

    You must include:

    • assessable amounts transferred from reserves
    • for the 2012–13 financial year only- amounts reported at label 15(j) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Find out more

    For more information about the amount, refer to regulation 292‑25.01 of the ITAR 1997.

    End of find out more

    Non-assessable amounts

    Provide the amount that the ITAA 1997 treats as a non‑concessional contribution because an amount was allocated to the member’s account from a reserve and not included as assessable income of the fund.

    You must include:

    • non‑assessable amounts transferred from reserves
    • for the 2012–13 financial year only, amounts reported at label 15 (j) on a Rollover benefits statement (NAT 70944) received from a transferor provider.

    Find out more

    For more information about the amount, refer to regulation 292‑25.01 of the ITAR 1997.

    End of find out more

    54 Contributions made to a previously non‑complying fund

    Provide the amount of all contributions made on or after 10 May 2006 to the provider if it was a non‑complying super fund but became a complying fund at the beginning of the financial year this MCS relates to. Do not include at this question contributions made after the fund became complying. These contributions are shown at the relevant questions.

    For the 2012–13 financial year only – if the fund received a rollover from a previously non‑complying fund during the income year in that fund’s first year of compliance, include the amount of contributions that were made for the benefit of the member on or after 10 May 2006 to the transferring fund while it was a non‑complying fund.

    55 All contributions received for the current year

    Attention

    It is necessary to report the members’ contributions received before any reduction in the amount of contributions following the lodgment of a release authority.

    End of attention

    Provide the total contributed amount received for, credited to or otherwise attributed to the member’s account for the relevant financial year before any taxes or expenses are debited from the member’s account.

    This may include:

    • contributions reported in all other fields
    • for the 2012–13 financial year only – amounts reported at label 15(k) on a Rollover benefits statement (NAT 70944) received from a transferor provider
    • other contributions received for the member but not reported in any other field, such as  
      • co‑contributions received by the provider for the member
      • SHASA super co‑contribution credit amounts received by the provider for the member
      • LISC received by the provider for the member
      • a KiwiSaver amount the KiwiSaver scheme or member has shown to be either  
        • an Australian‑sourced amount (which is generally an amount that was previously received by a KiwiSaver scheme from an Australian super provider), or
        • a returning New Zealand‑sourced KiwiSaver amount (which is generally a New Zealand amount that has previously been treated as a non‑assessable foreign fund amount in Australia).
         
       

    All other KiwiSaver amounts must be included at question 52 – non‑assessable foreign fund amount. This may include:

    • the amount that a member has chosen to have included in the fund’s assessable income from a lump sum super benefit transferred from a foreign super fund or scheme
    • last‑minute employer contributions that the trustee of a public sector super scheme has chosen not to include in assessable income
    • FHSA contributions received with the Super contributions from a first home saver account (NAT 72537) and government FHSA contributions via a remittance advice.

    Do not include:

    • contributions received by the fund in excess of the cap and returned within 30 days of becoming aware of the excess
    • contributions returned because the fund did not hold the members TFN
    • an amount received from the account of a member’s spouse and credited to the member’s account because of a contributions splitting application or a contributions split ordered by a court (these amounts are regarded as transferred benefits rather than contributions).

    The amount written at this question must be equal to or greater than the sum of all of the following questions:

    • question 43 – employer contributed amount
    • question 45 – defined benefit contributions (MCS lodgments for 2013 and subsequent financial years).
    • question 46 – personal contributed amount
    • question 47 – capital gains tax (CGT) cap election amounts
    • question 48 – personal injury election amount
    • question 49 – spouse and child contributions amount
    • question 50 – other family and friends contributions amount (‘other third-party amount’)
    • question 51 – assessable foreign fund amount
    • question 52 – non‑assessable foreign fund amount
    • question 53 – transferred from reserves amounts
    • question 54 – contributions made to a previously non‑complying fund.
    Attention

    The amount reported at question 55 must be equal to or greater than the sum of all the amounts reported at questions 43 to 54.

    Do not include question 44 – notional taxed contributions as it overlaps with question 45 – defined benefit contributions. If you include it here it would double up the amounts.

    End of attention
    Last modified: 26 Aug 2014QC 35483