• Example 1 – Simple rollover of all entitlements

    Example 1 assumes there are no investment earnings, losses or administration fees. In some cases, rounding has been applied to eliminate cents and simplify the calculations.

    Tracie is a member and a trustee of an SMSF. Her account balance on 1 July 2015 is $100,000. This balance is made up of a tax-free component of $80,000 and a taxable component of $20,000.

    In September 2015, Tracie makes a non-deductible personal contribution of $5,000. In October 2015, she decides to rollover the entire balance held in her SMSF to Fund TTT.

    When the rollover is made, Tracie's SMSF provides Fund TTT with an RBS reporting income tax and contributions information as follows.

    Completing the RBS when the rollover is made

    Tracie's SMSF completes item 13 'Tax components' (which are the income tax components) as follows:

    Item 13 – Rollover components

    Tax-free component

    $85,000

    Taxable component:

    • Element taxed in the fund

    $20,000

    • Element untaxed in the fund

     

    Completing the SMSF annual return (SAR) after the end of the financial year

    Prior to completing section F of the SAR, Tracie must ensure that she has all the details relating to the contributions that have been made to her SMSF during the financial year, together with the details of amounts she has rolled out of her SMSF to other funds on a RBS.

    Tracie must report on the SAR details of the contributions made in the 2015–16 financial year and the amounts rolled over.

    In section F of the SAR at label B 'Personal contributions', Tracie reports $5,000.

    At the same time, Tracie will need to include at section F label Q ''Outward rollovers and transfers' the amount she rolled over of $105,000.

    Section F will include the following amounts

    Opening account balance

    $100,000

    Label A – Employer contributions

    Nil

    Label B – Personal contributions

    $5,000

    Label N–- Total contributions

    $5,000

    Label O – Allocated earnings or losses

    Nil

    Label P – Inward rollover amounts

    Nil

    Label Q – Outward rollovers and transfers

    $105,000

    Label R – Benefit payments and code

    Nil

    Label S – Closing account balance

    Nil

    As Tracie's entire balance has been rolled over to Fund TTT, section F of the SAR is not completed for Tracie.

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      Last modified: 14 Feb 2017QC 25212