Did the SMSF transfer any amounts to the member's account from the SMSF's reserves?
No |
Leave K and L blank. Do not include a transfer from reserve for the member at O. Go to T. |
|---|---|
Yes |
Read on. |
Write the amount the SMSF transferred in 2014-15 from a reserve to the member's account at:
- K Transfer from reserve: assessable amount
- L Transfers from reserve: non-assessable amount
- O Allocated earnings or losses.
- Read on for information about how to complete these items.
See also:
K Transfer from reserve: assessable amount
Did the SMSF allocate an amount to the member's account where the amount:
- is an assessable contribution of the SMSF not included at another question
- was allocated from a reserve and would be assessable income if the amount was made as a contribution or
- was allocated from a reserve and is not excluded from being a concessional contribution?
No |
Leave K blank. Go to L. |
|---|---|
Yes |
Read on. |
Write at K the total of the assessable amounts allocated in 2014–15 from the SMSF's reserves to the member's account.
In some cases, the amount you write at K is greater than the amount actually allocated to the member’s account. Where the amount was allocated to the member’s account from a reserve instead of an employer making a contribution to the SMSF, multiply the amount that was transferred from the reserve by 1.176 to include the 15% tax that the SMSF would have paid if the employer had actually made a contribution to the SMSF for the member. Write at K this grossed-up amount rather than the amount that was transferred from the reserve.
The amount at K is included in the member's concessional contributions.
Example: Grossing up a transfer from reserve: assessable amount
An employer has an obligation to make a $1,000 super contribution for the member.
Instead of the employer making the $1,000 contribution to the SMSF, the SMSF trustee allocates $850 to the member’s account from a reserve. The $850 takes into account that 15% tax is payable on a $1,000 employer contribution to super.
The trustee writes $999.60 (that is, $850 × 1.176) at K.
End of exampleL Transfer from reserve: non-assessable amount
Did the SMSF allocate an amount to the member's account where the amount is:
- not assessable contributions of the SMSF and not included at another question, and
- not an amount that should be included at O Allocated earnings or losses (see information at Transfers from reserves that are not included at K or L)?
No |
Leave L blank. Go to T. |
|---|---|
Yes |
Read on. |
Write at L the non-assessable amount allocated from the SMSF's reserves to the member's account (other than amounts included at O Allocated earnings or losses).
The amount written at L is included in the member's non-concessional contributions.
Transfers from reserves that are not included at K or L
Generally, all allocations from reserves are reported as either assessable or non-assessable amounts, but certain exceptions apply and these amounts are reported at O Allocated earnings or losses. For example, the following allocations from reserves are included at O Allocated earnings or losses:
- amounts allocated to all members, or to a class of members to which the reserve relates, on a fair and reasonable basis, and the amount allocated for 2014–15 is less than 5% of the value of the members' interest
- amounts allocated for the sole purpose of discharging super income stream liabilities that are currently payable
- allocations following the commutation of a pension, where the amount in the reserve is allocated to an individual as a result of the death of the primary beneficiary of the pension, and it is used to support another income stream for that individual.