Actuarial Services  

ABP Certificates

An actuarial certificate is needed under s295-390 of the ITAA97 in order to claim a proportion of the assessable SMSF income as exempt from tax under the unsegregated method. No dataform is needed if you simply email us draft accounts before year end allocations and the general ledger. Alternatively use the dataform below.

2020/21 Cost: $77 Inclusive of gst

Defined Pensions

For SMSFs with a legacy defined pension such as s1.06(2) Lifetime; s1.06(7) Life Expectancy and s1.06(6) Flexi Pension, the report checks that the assets meet the high probability requirement going forward and provides the s295-390 tax exemption percentage for past year. Please email the application form and supply the previous actuarial report.

2020/21 Cost: $220 inclusive of gst

Lifetime Calculator

This calculator allows you to estimate the liability of a lifetime pension for either a single person or a couple, including the reserves needed for high probability certification. (Save to desktop - Right click - unblock in properties)

Min Pension Calcs

If a pension does not meet the minimum drawdown requirements, then the current pension income exemption is lost from the beginning of the financial year.

NetActuary has web based calculators that allow you to check these requirements for both Account Based Pensions and Market-Linked/TAPs.

Deemed Segregation

The implementation date for reduced ECPI actuarial certificate red tape has been pushed back by a year to 1 July 2021. From that date, an SMSF can choose an unsegregated approach for the full financial year -  even if for part of the year the fund is fully in pension mode. The disregarded small fund asset rules will be amended so that no actuarial certificate will be needed where a 100% tax exemption applies. In the meantime, needing multiple sets of accounts can be avoided by ensuring that at least a small amount is left in an accumulation account at all times during the year.

Transfer Balance Caps

Special valuation (and other) rules apply to capped "defined benefit income streams" (DBIS). Flexi pensions don't fall under these rules. Market-linked pensions may or may not be a DBIS depending on the commencement date.  Currently, market linked pensions have commutation anomolies that need to be corrected by legislation.

Where the defined benefit income stream exceeds $100,000, 50% of the excess is included as assessable income and taxed at the individual's marginal tax rate.