• How to report contributions that you rollover – self-managed superannuation funds

    The following instructions and examples will assist you as a trustee of a self-managed super fund (SMSF) or a trustee's authorised agent to complete:

    • 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.

    You should read and understand the instructions below for completing these forms before you refer to the examples:

    Contributions need to be reported accurately after a rollover

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

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

    You will usually report contributions after the end of the financial year directly to us in your Self-managed superannuation fund annual return (SAR). That is unless a rollover is involved.

    If you have rolled over all or a part of a member's balance to another super fund, you need to report information about the rollover to the receiving fund on an RBS.

    See also:

    • TR 2010/1 Income tax: superannuation contributions

    Find out about:

    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.

    Find out about:

    Example 2 – One partial rollover during the year

    Example 2 assumes there are no investment earnings, losses or administration fees. In some cases, rounding has been applied to eliminate cents and simplify the calculations.

    Julie is a member and a trustee of an SMSF. Her account balance on 1 July 2015 is $50,000. Included in this balance are Julie's personal contributions of $10,000. She has not given a notice of intention to deduct any of these contributions using a Notice of intent to claim or vary a deduction for personal super contributions form (NAT 71121), so they are a tax-free component for income tax purposes.

    In March 2016, Julie makes a non-deductible personal contribution of $100,000. This brings the value of her super interest to $150,000, with a tax-free component of $110,000.

    In June 2016, Julie rolls over $60,000 to Fund XYZ and leaves $90,000 in her SMSF. When the rollover is made, Julie's SMSF provides Fund XYZ with an RBS reporting income tax and contributions information as follows.

    Completing the RBS when the rollover is made

    Item 13 – Tax components

    Using the proportioning rule, Julie calculates the tax-free component of her $60,000 rollover as the ‘Rollover amount’ multiplied by the result of the ‘Tax-free component of her super interest before the rollover’ divided by the ‘Value of her super interest before the rollover’, that is:

    $60,000 × ($110,000 ÷ $150,000) = $44,000

    The taxable component of her $60,000 rollover is the remainder of the rollover:

    $60,000 − $44,000 = $16,000

    Julie completes item 13 'Tax components' as follows:

    Tax-free component

    $44,000

    Taxable component:

    • Element taxed in the fund

    $16,000

    • Element untaxed in the fund

     

    Julie also needs to calculate how much of her personal contributions made in the 2015–16 financial year remain in the SMSF after paying the rollover to Fund XYZ and how much was rolled out and so reported on the RBS given to Fund XYZ.

    While Julie can calculate the components of her remaining super interest in the SMSF using the same method as above, it is simpler to use subtraction, as follows.

    The tax-free component of her interest left in the SMSF is the tax-free component before the rollover minus the tax-free component rolled out:

    $110,000 − $44,000 = $66,000

    The taxable component is the remainder of her interest – that is, the total in the SMSF after the rollover minus the tax-free component after the rollover:

    $90,000 − $66,000 = $24,000

    So, the portion of the $100,000 contribution that is still held for Julie in the SMSF after paying the rollover is the ' Tax-free component of the remaining interest' multiplied by the result of the ' Contribution made in the same financial year as the rollover' divided by the ' Tax-free component of her entire interest before the rollover', that is:

    $66,000 × ($100,000 ÷ $110,000) = $60,000

    Completing the SMSF annual return after the end of the financial year

    Prior to completing section F of the SAR, Julie 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 any contributions that she has rolled out of her SMSF to other funds on a RBS.

    Julie must report on the SAR details of the contributions made in the 2015–16 financial year and rollovers. In section F of the SAR at label B 'Personal contributions', Julie reports $100,000 -

    At the same time, Julie will need to include at section F label Q 'Outward rollovers and transfers' of $60,000.

    Section F will include the following amounts

    Opening account balance

    $50,000

    Label A – Employer contributions

    Nil

    Label B – Personal contributions

    $100,000

    Label N – Total contributions

    $100,000

    Label O – Allocated earnings or losses

    Nil

    Label P – Inward rollover amounts

    Nil

    Label Q – Outward rollovers and transfers

    $60,000

    Label R – Benefit payments and code

    Nil

    Label S – Closing account balance

    $90,000

    Find out about:

    Example 3 – Multiple rollovers during the year

    Example 3 assumes there are no investment earnings, losses or administration fees. In some cases, rounding has been applied to eliminate cents and simplify the calculations.

    John is a member and a trustee of an SMSF, His account balance at 1 July 2015 is $200,000. Included in this balance are John's personal contributions of $100,000. He has not given a notice of intention to deduct any of these contributions using a Notice of intent to claim or vary a deduction for personal super contributions form (NAT 71121), so they are a tax-free component for income tax purposes.

    First rollover

    In March 2016, John makes another non-deductible personal contribution of $95,000. This brings the value of John's super interest to $295,000, with a tax-free component of $195,000.

    In April 2016, John rolls over $60,000 to Fund ABC and leaves $235,000 in his SMSF. When the rollover is made, John's SMSF provides Fund ABC with an RBS reporting tax and contributions information as follows.

    Completing the RBS when the rollover is made

    Item 13 – Tax components

    Using the proportioning rule, John calculates the tax-free component of his rollover as the 'Rollover amount' multiplied by the result of the 'Tax-free component of his super interest before the rollover' divided by the 'Value of his super interest before the rollover', that is:

    $60,000 × ($195,000 ÷ $295,000)

    The taxable component of his $60,000 rollover is the remainder of the rollover:

    $60,000 − $39,661 = $20,339

    John completes item 13 'Rollover components' as follows:

    Tax-free component

    $39,661

    Taxable component:

    • Element taxed in the fund

    $20,339

    • Element untaxed in the fund

     

    John needs to calculate how much of his personal contributions made in the 2015–16 financial year remain in the SMSF after paying the rollover to Fund ABC.

    The tax-free component of his interest left in the SMSF is the tax-free component before the rollover minus the tax-free component rolled out:

    $195,000 − $39,661 = $155,339

    The taxable component is the remainder of his interest in the fund – that is, the total in the SMSF after the rollover minus the tax-free component after the rollover:

    $235,000 − $155,339 = $79,661

    Summary of reporting on the RBS for the first rollover

    What

    Reported at

    Amount

    Tax-free component

    Item 13

    $39,661

    Taxable component:
    Element taxed in the fund

    Item 13

    $20,339

    After the rollover has been made, the balance of John's super interest in the SMSF is $235,000, which is made up of:

    • Tax-free component: $155,339
    • Taxable component: $79,661

    Additional contributions and second rollover made during the year

    In May 2016, John received employer contributions of $2,000 and made additional non-deductible personal contributions of $45,000. There is a $300 allowance for tax on employer contributions. This brings the value of John's super interest to $281,700 ($235,000 + $2,000 + $45,000 − $300).

    John's super interest is now made up of a:

    • tax-free component of $200,339 (the $155,339 tax-free component in the fund before the contribution plus the personal contribution of $45,000)
    • taxable component of $81,361 (the $79,661 taxable component in the fund before the contribution plus the $1,700 net amount of employer contributions).

    In June 2016, John rolls over a further $80,000 to Fund ABC and leaves $201,700 in his SMSF. When the rollover is made, John's SMSF provides Fund ABC with an RBS reporting tax and contributions information as follows.

    Completing the RBS when the rollover is made

    Item 13 – Tax components

    Using the proportioning rule, John calculates the tax-free component of his $80,000 rollover as the 'Rollover amount' multiplied by the result of the 'Tax-free component of his super interest before the rollover' divided by the 'Value of his super interest before the rollover', that is:

    $80,000 − ($200,339 ÷ $281,700) = $56,894

    The taxable component of his $80,000 rollover is the remainder of the rollover:

    $80,000 − $56,894 = $23,106

    John completes item 13 'Rollover components' as follows:

    Tax-free component

    $56,894

    Taxable component:

    • Element taxed in the fund

    $23,106

    • Element untaxed in the fund

     

    John calculates the components of his remaining super interest in the SMSF ($201,700) as follows.

    The tax-free component of his interest left in the SMSF is the tax-free component before the rollover minus the tax-free component rolled out:

    $200,339 − $56,894 = $143,445

    The taxable component of his interest left in the SMSF is the remaining interest in the SMSF minus the tax-free component remaining in the SMSF:

    $201,700 − $143,445 = $58,255

    Completing the SMSF annual return after the end of the financial year

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

    John must report on the SAR details of the contributions received by the SMSF and the rollover amounts:

    Section F – Member information

    Opening account balance

    $200,000

    Label A – Employer contributions

    $2,000

    Label B – Personal contributions

    $140,000

    Label N – Total contributions

    $142,000

    Label O – Allocated earnings or losses

    $300 (Loss)

    Label P – Inward rollover amounts

    Nil

    Label Q – Outward rollovers and transfers

    $140,000

    Label R – Benefit payments and code

    Nil

    Label S – Closing account balance

    $201,700

      Last modified: 14 Feb 2017QC 25212