Tag: Superfund taxation

1 Mar 2022 — 31 Dec 2025

This module provides the final overlay of taxation on benefit payments. Having identified the components of a member’s interest, the proportioning that applies to benefit payments and the types of benefits that can be paid, the final step is to determine how much tax is to be paid on those benefits. The module also considers the taxation treatment of non-standard benefit payments such as disability superannuation benefits and terminal illness benefits.

LEARNING OUTCOMES

On completing this module, participants should be able to:
• calculate how much tax is payable on a lump sum or pension
• identify the taxation implications of paying a reversionary pension
• calculate the tax-free portion of a disability superannuation lump sum
• calculate the untaxed element of a superannuation lump sum death benefit payable to a non-tax dependant.

This module explores a complying superannuation fund’s taxation obligations. It considers the taxation of contributions, the applicable capital gains tax (CGT) provisions, how foreign transfers are treated and ordinary income.

This module also identifies income from transactions that are not maintained on an arm’s-length basis and imposes a higher rate of tax for income that is deemed not at arm’s length. It also explores the deductions allowable for a self-managed superannuation fund (SMSF) both in accumulation and retirement phases.

LEARNING OUTCOMES

On completing this module, you should be able to:

• identify which contributions are taxable
• understand how capital gains tax is calculated in an SMSF
• make an election to have the applicable fund earnings of a foreign superannuation fund taxed concessionally in an SMSF
• determine what income amounts are deemed non-arm’s length income
• identify which insurance premiums are deductible
• explain how the exempt current pension income deduction works.

Self-managed superannuation fund (SMSF) trustees have ultimate control over the investments of the fund, so long as all investments are made in conjunction with the fund’s investment strategy, the sole purpose test and within the investment restrictions outlined in the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) and Superannuation Industry (Supervision) Regulations 1994 (Cth) (SIS Regulations).

The module analyses the requirements for an SMSF to have an investment strategy in accordance with the trustee covenants and operating standards for investments. It also revisits the concept of the sole purpose test, with a deeper review of what the test requires.

Having determined a fund’s investment strategy, this module investigates the numerous investment restrictions placed on superannuation trustees, and more specifically SMSF trustees, and the exceptions to the rules that allow SMSFs and small Australian Prudential Regulation Authority (APRA) funds (SAFs) to acquire certain assets from related parties that other funds are unable to acquire.

LEARNING OUTCOMES

On completing this module, you should be able to:

• identify the obligations associated with giving effect and formulating an investment strategy
• consider the sole purpose test with regards to making investments in an SMSF
• describe the prohibitions that an SMSF trustee is faced with in regards to investments and the exceptions to those prohibitions
• outline the assets that the trustees of an SMSF can acquire from a related party of the fund
• define a related party of the fund
• understand the rules relating specifically to collectable and personal-use assets that apply only to SMSFs
• describe the in-house asset rules and how they apply
• consider the use of reserves in an SMSF.

This module looks at the steps to establish a self-managed superannuation fund (SMSF) as a regulated superannuation fund in order to become a complying superannuation fund entitled to tax concessions. The module identifies the trustee covenants that all trustees must abide by and are deemed to be incorporated into the governing rules of the fund whether they are actually stated or not.

In the first significant link between the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) and the Income Tax Assessment Act 1997 (Cth) (ITAA 97), this topic reviews the definition of an Australian superannuation fund which is a definition that an SMSF is required to satisfy if it is to be a complying superannuation fund.

Finally, the module covers the fund’s responsibilities that must be outsourced and identifies the penalty regime that applies to all SMSFs for breaches of the SIS Act.

LEARNING OUTCOMES

On completing this module, you should be able to:

• identify some of the considered advantages and disadvantages of having an SMSF
• list the key regulatory steps required to establish an SMSF
• identify the key trustee covenants and their associated regulations to ensure an SMSF meets its obligations with regards to assets
and investment strategies
• describe the characteristics of an Australian superannuation fund
• ensure an SMSF continues to satisfy the definition of an Australian superannuation fund
• discuss the various penalties that may be imposed on SMSF trustees for a breach of the SIS Act.

The SMSF Association SMSF Specialist Advisor™ accreditation is recognised industry-wide as a comprehensive and challenging assessment of an individual’s ability as an SMSF advisor.

OVERVIEW

The purpose of the SSA accreditation is to qualify individuals who apply a broad and coherent knowledge in a range of contexts to undertake professional work and as a pathway to further learning. The SSA™ accreditation program analyses the unique intersection of the Superannuation Industry (Supervision) Act 1993 (SISA), the Superannuation Industry (Supervision) Regulations 1993 (SISR) and the Income Taxation Assessment Acts 1936 and 1997 (ITAA).

To be eligible for recognition as an SMSF Specialist Advisor (SSA™) designation with the SMSF Association you are required to complete 9 modules and successfully complete a 2-hour online examination with a pass mark of 50% or higher. The modules offer deep technical content and focus on examining, in detail, the array of regulations and legislation that underpin the operation of an SMSF.
The modules cover the following topics:

1. SMSF regulatory framework
2. Regulating SMSFs
3. Contribution standards
4. Investing in an SMSF
5. Taxing an SMSF
6. Members interests and preservation standards
7. Payment standards and paying a benefit
8. Taxing superannuation payments
9. SMSF controls – planning for life events

LEARNING OUTCOMES:

On successful completion of this subject, participants should be able to:

• Research and explain the legal regulations that apply to SMSFs.
• Research and critically evaluate the special taxation rules applicable to superannuation contributions, superannuation funds and superannuation benefits.
• Develop and critically evaluate an SMSF strategy to deal with regulatory and tax requirements in a complex SMSF scenario.
• Justify an SMSF strategy to deal with regulatory and tax requirements in a complex SMSF scenario.

KNOWLEDGE
Graduates of the SSA accreditation will have a broad and coherent theoretical and technical knowledge in one or more disciplines of areas of SMSF practice.

SKILLS
Graduates of the of the SSA accreditation will have well-developed cognitive, technical and communication skills to select and apply methods and technologies to:
• Analyse and evaluate information to complete a range of activities
• Analyse, generate and transmit solutions to unpredictable and sometimes complex problems
• Transmit knowledge, skills and ideas to others

APPLICATION OF KNOWLEDGE AND SKILLS
Graduates of the SSA accreditation will apply SMSF industry knowledge and skills to demonstrate autonomy, well-developed judgement and responsibility;
• In contexts that require self-directed work and learning
• Within broad parameters to provide specialist advise and functions

FASEA CPD CATEGORIES
The SSA designation is aligned to competencies under the FASEA CPD categories. The designation supports demonstration for ongoing professional practice in the categories of:
• Technical competence
• Regulatory compliance and consumer protection
• Client care and practice