ECPI COMPARATIVE ANALYSIS EXAMPLE 1
As NetActuary processes ECPI Comparative Analysis
Reports, I will provide sample examples. The example in this blog had
pensioners who made a “downsizer contribution” in February 2022. They
also had a sizeable holding of BHP shares that paid a large, one-off
fully franked dividend on 01/06/2022. My interest is not just to learn
to fly this new superannuation system, but to gain insight into how to
construct strategies. In this example, the SMSF members had flexibility
of when they would make the contribution.
They had about $2.6 million in start balances. Total dividends were $279,750
with $107,168 franking credits – nearly half from the BHP special dividend
for the Woodside restructing. Total pension payments were $69,000 with
$2,741 expenses. Change in market value was a $262,379 loss.
One initially is tempted to use the full year unsegregated approach. This
leads to a $2,927 refund. The deemed segregation option yields a $4,512
refund. With this new task one finds practical challenges. In this case,
initially the franking credits were only available in aggregate. It didn’t
have brought forward tax (revenue) or capital gains losses. One quickly
realizes that one needs more information about what previously would have
been left as year end transactions. (Sometime, I must write a summary of
how assessable income, unrealized gains, expense apportionment etc. have
some flexibility in approach.)
My next analysis has a sizeable Bitcoin loss. Bitcoin is regarded by the ATO
as a CGT asset. This area is going to have a considerably larger nuance than
just minimizing capital gains tax.
If you would like us to undertake some ECPIs comparative analysis reports,
please give Brian a call. We have kept the cost of these reports to $99
inclusive of GST. Our actuarial certificates are the same cost as last year
i.e. $77 inclusive of GST. A general ledger copy provides virtually all the
data needed, but there are some additional questions around disregarded small
fund assets and carry forward losses.
NetActuary will build an understanding of how you approach the issues and not
rely simply on automated computer algorithms – that is too dangerous!