ATO Community

Taxable Component negative due to losses in fund

This post is archived and may not be up-to-date.

Initiate

Views 825

Replies 1

Hi

I have taken on a new client that has been running an SMSF for a few years and the members have not yet rolled their industry fund balances. There have only been a couple of Government Co-contributions received, as well as non-concessional member contributions received by way of member's paying fund expenses. Most years there have been losses, so much so, that the taxable component is now showing as a negative on the member statement. The software the previous accountant was using is BGL.

Is this possible?

Now that the taxable component is zero, should the tax free component not be reduced by the losses? 

Sam

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Initiate

Replies 0

Found the answer

 

The taxable component of the superannuation interest is simply the difference between the value of the superannuation interest and the tax free component.  Consequently, all positive earnings after 30 June 2007 will form part of the taxable component.

 

The tax free component will be expressed as a dollar amount and will not (except in exceptional circumstances – such as investment losses reducing the value of the superannuation interest below the value of the tax free component) be affected by earnings. 

1 REPLY 1

Most helpful response

Initiate

Replies 0

Found the answer

 

The taxable component of the superannuation interest is simply the difference between the value of the superannuation interest and the tax free component.  Consequently, all positive earnings after 30 June 2007 will form part of the taxable component.

 

The tax free component will be expressed as a dollar amount and will not (except in exceptional circumstances – such as investment losses reducing the value of the superannuation interest below the value of the tax free component) be affected by earnings.