Superannuation Meets Periodic Processing

Have a self-managed super fund? Listen up.
August 2, 2018
Superannuation
by
Kristie Drain

CrossFit junkie. Beach lover. SMSF Queen. Mum to two boys. Always up for bushwalks.

With the new Superannuation reporting obligations, Illumin8 are moving to periodic processing for our Self-Managed Funds. 

The move to periodic processing is due to the Transfer Balance Cap and Event Based Reporting 

What is Transfer Balance Cap and Event Based Reporting? 

Your Transfer Balance Cap is the limit on the total amount of superannuation that can be transferred into retirement phase. The transfer balance cap starts from 1st July 2017 with the cap starting at $1.6 million. It will be indexed periodically in line with CPI. 

A Self-Managed Superannuation Fund must report events that affect a member transfer balance. Some of these include: 

  • Details of Income Streams being received at 30th June 2017 and continued to be paid on or after 1st July 2017
  • Details of Income Streams commencing on or after 1st July 2017 
  • Death Benefit Income Streams 
  • Commutations of Retirement Phase Income Streams that occur on or after 1st July 2017

Why move to Period Processing? 

Here at Illumin8 we like keeping in contact with our clients. Going forward we are no longer able to look at SMSF Financials once a year. Implementing Periodic Processing as best practice for our SMSF clients means we can monitor:

  • Contribution Caps
  • Pension Payments
  • Tax Planning for SMSF Events 
  • Potential Conditions of Release being met
  • Lodge to the ATO Transfer Balance Cap Events by the due date

What does this mean for you?

Every quarter we will make contact and request SMSF information for the quarter. Also, we will check how everything is tracking for your Self-Managed Super Fund.  

Superannuation
August 2, 2018