Choosing the arrow to the right of Please Select... in the Tax Profile row enables selection of the correct tax profile for your fund.
You can choose from:
- Accumulation Only (if no members are in Pension or Transition to Pension phase)
- Accumulation and Pension (if you have a mixture of members in Accumulation and Pension phase)
- Review and Edit Tax Data (use to adjust the SMSF Supervisory Levy for New Funds and Winding Up a Fund)
If you are in the Accumulation Only Phase, then you only need to choose Accumulation Only and then choose SAVE. You can then go to Step 4: Members Weighted Average.
If you choose Review and Edit Tax Data, you can step through the individual tax calculation screens and make changes as required using the legacy editing method. You use this method if this is the first year of the fund or are winding up the fund, as you need to adjust the SMSF Supervisory Levy. Refer to Account for SMSF Supervisory Levy.
Any changes you make to the Deductions and Tax Calculations cannot be verified correct by Mclowd. Extreme caution should be exercised when making changes manually.
Choose the correct profile for your fund. The SAVE button should light up. Choose SAVE for the selected profile and progress to the next step (Member Weighted Average).
Note: Pending software upgrades currently in progress, Pension Only phase is not available for selection. In the interim, users can perform year end processing for funds 100% in pension phase using the Legacy Year End Processing method.
As at 1 July 2017, Transition to Retirement Accounts for persons under 60 years of age are no longer Tax-Favoured and should generally be treated the same as Accumulation Accounts. If there are members in your fund who have Transition to Retirement Accounts, you may need to make manual adjustments to ensure tax is calculated and allocated correctly – keeping in mind that contributions and income from assets is taxed at the same rate as contributions and income to accumulation funds, but pension payments are taxed at concessional rates for those aged 55-59 and are tax free for recipients aged 60 or over. If the Accumulation tax profile is selected, ECPI does not need to be calculated and this section can be skipped.