Superannuation

Calculation setup

Statement Purpose
The
Calculation setup
 statement is the starting point in preparing the Superannuation worksheets and their calculations.
The sheet enables you to customize the way tax rules are applied to create a list of workpapers which is tailored for the tax adjustments which are most relevant to the entity.
For example, you can:
  • Input the ECPI applicable for the year
  • Input the ECPI applicable for expenses for the year
  • Indicate whether TOFA is applicable and if so, which tax timing elections have been made.

Explanation of fields

Dataset name
This is automatically generated from the dataset when the calculation is created.
Income tax year
This field is automatically generated and displays the current reporting year for income tax purposes. It's important that the correct income tax year is entered in this field as the calculations in certain worksheets rely on this field. For example, the losses worksheets rely on this in calculating balances.
Calculation start date
This field is automatically populated with the start date of the dataset.
Calculation end date
This field is automatically populated with the end date of the dataset.
note
If the
Holding back income classes during interim distributions
 field has been set to ‘
Yes
’ and the calculation end date and year-end date are equal the hold back will deactivate.
Calculation mode
The calculation mode allows you to determine the purpose of the calculation as a:
  • Tax provision calculation
  • Tax return calculation
  • Other calculation (for running forecasting and other analysis)
Display prior period comparison
This allows you to pull in certain prior period details into the calculations, the prior period data that is pulled in includes:
  • Prior year accruals closing balances
  • Prior year tax reconciliation
  • Prior year account balances
Prior period dataset name and Prior period calculation name
These are automatically generated from the dataset and the calculation respectively.

Capital gains/losses and CGT concession setup

Capital gains discount factor
The default capital gains discount factor is 33.33. The capital gains discount factor is utilized in the
Net capital gains calculation
 statement to calculate the capital gains discount amount and net foreign capital tax offset discounted gains.
Capital loss allocation method - current and prior year
There are 2 options within the field which are to either utilize the standard current and prior year capital loss allocation against capital gains or have the flexibility to customize the allocation of current year and prior year capital losses.
The standard option (default) to allocate the current and prior year capital losses against capital gains is as follows:
  1. TAP other method
  2. TAP indexed gain
  3. NTAP other method
  4. NTAP indexed gain
  5. TAP discounted gain
  6. NTAP discounted gain
The custom method allows you to order the way current and prior year capital losses are to be allocated against the gains. If this option is selected use the reference list under the custom current and prior year capital loss allocation ladder to order the allocation of losses.
note
Each number can only be selected once. If it is selected more than once the error message “
Option selected more than once
” will appear beside the duplicate options.
Applying Discounting to the Foreign Capital Tax Offset
The selection of this option allows the capital gains discount factor of 33.33% to be applied against foreign capital tax offset discounted gains in
Net capital gains calculation
.
Post current year tax deferred cost base adjustment
The selection of this option allows current year tax deferred items from
Distribution entitlement summary
 to be applied against unrealised capital gain/loss in
Net capital gains - unrealised
.
Post prior year tax deferred cost base adjustment
The selection of this option allows prior year tax deferred items which is a manual input (first year) or roll forward prior year amount to be applied against unrealised capital gain/loss in
Net capital gains - unrealised
.
Provide separate offset and gross-up amount for Franking Credit and FITO
The selection of this option allows the user to recognise the gross-up franking credits and foreign income tax offset (FITO) in
Distribution Summary
.
Exempt Current Pension Income (ECPI) percentage set up
This section allows you to input the ECPI percentage for income and expenses. You would have received a certificate from an actuary that has determined the percentage of income that are exempt from assessable income. You can also determine the ECPI for expenses using the actuarial percentage.
PDF election
This allows you to elect to include the franked part of the pooled development fund distribution in assessable income.
Investment status (capital and revenue)
This section allows for the determination of the status of investments at a fund level as either revenue or capital account and treat certain items as of a revenue nature and others as capital in nature.
  • Investment status at a fund level:
     When the Trust investment status is set to
    Revenue
     and the
    Capital gains information import (summary)
     statement has been inserted the statement will configure the headings to display as
    Domestic
     and
    Foreign
    and any amounts uploaded will link through to the
    Other tax adjustments
     statement.
  • Investment status at an income type:
     The
    Net capital gains calculation
     statement will automatically insert a line item to capture the capital gains and/or losses relating to the income type that is set as
    Capital
    . These amounts can be entered directly into the statement.
Unrealised Gain or Loss amount
This section allows for the determination of the status of unrealised gain/loss amount at
Statement of Unrealised Income
 as either accounting or tax. The selection of accounting will retrieve unrealised gain/loss value from
Income Statement
 while selection of tax will retrieve the tax value from
Income gains/losses – Unrealised current year
. This allows you to determine any temporary differences of the unrealised gain/loss during the year under
Temporary differences
 statement.
Expense allocation setup
The purpose of the expense allocation section is to provide option for allocating deductible expenses against capital gain instead of assessable income. This section allows users to insert additional rows under Expenses to allocate specific deductible expenses against capital gain.
TOFA elections
The TOFA elections section allows you to select the methods that have been applied for calculating gains and losses under the Taxation of Financial Arrangements ("TOFA") rules as per Division 230 of the Income Tax Assessment Act 1997.
TOFA applicable
If this option is set to
Yes
 then TOFA applies to the calculation and the default methods are used. When TOFA is applied to the calculation the following line items will appear in the below statements:
Balance sheet
  • Interest receivable - pre TOFA
  • Interest receivable - post TOFA
  • Domestic interest receivable - non- withholding tax - pre TOFA
  • Domestic interest receivable - non-withholding tax - post TOFA
Interest reconciliation statement
  • Interest receivable - pre TOFA - opening balance
  • Interest receivable - pre TOFA - closing balance
Tax reconciliation
  • Interest receivable - pre TOFA - opening balance
  • Interest receivable - pre TOFA - closing balance
  • TOFA gains
  • TOFA (losses)
Other Tax adjustments
  • Realised - gains
  • Realised - (losses)
  • TOFA gains
  • TOFA (losses)
Hedging (elective)
If this option is set to
Yes
, the
TOFA ITR disclosure
 section appears on the
Statement of taxable income
 (only in Tax return mode for the Trust tax return)
The following line additional items appear within each statement listed below:
  • Interest reconciliation statement
    • TOFA gains
    • TOFA (losses)
  • Tax reconciliation
    • TOFA gains
    • TOFA (losses)
  • Net capital gains calculation
    • Hedging gain/ (losses)
  • Other tax adjustments
    • Hedging - gain
    • Hedging - (losses)
    • Non-deductible losses
  • Non-assessable income statement
    • Exempt gains
    • Non-assessable non-exempt gains
Reliance on financial report (elective)
If this option is set to
Yes
 this records the fact that you are using the
reliance on financial report
 method and the
TOFA ITR disclosure
 section appear on the Statement of taxable income (only in Tax return mode for the Trust tax return). Currently this doesn't give rise to any calculations within the template as it is assumed these calculations are generated from your financial systems and are already incorporated within the
Income statement
 and
Balance sheet.
Fair value (elective)
If this option is set to
Yes
 the following will occur:
  • The
    TOFA ITR disclosure
     section appears on the Statement of taxable income (only in Tax return mode for the Trust tax return)
  • Two lines called
    Unrealised (MTM) - gains
     and
    Unrealised (MTM) - (losses)
     will appear on the Other Tax adjustments statement and the Fair value method applies to these amounts.
Forex retranslation (elective)
If this option is set to
Yes
 the "following will occur:
  • The
    TOFA ITR disclosure
     section appears on the Statement of taxable income (only in Tax return mode for the Trust tax return)
  • 2 lines called
    FFX gains
     and
    FFX (losses)
     will appear on the Other tax adjustments statement and the Forex retranslation method applies to these amounts.

This article applies to:

  • Product: ONESOURCE Corporate Tax