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Junior Member
Group: Forum Members
Last Login: 14/06/2009 10:57:44 PM
Posts: 4,
Visits: 13
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| Hello, can anyone tell me the correct treatment to split contributions? My wife and I each have accounts in our SMSF, and I want to split 85% of my contributions across to her account. Thanks, Mark
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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Hi,
I am not sure if I understand your question. You can split any transaction on the Cash and Journal Processing > Cash Receipt screen. Enter the full amount of the transaction at the top into the 'Amount (incl tax)' field then split the amount into several components in the middle of the screen. You can select a different income account on each line and enter an amount on each line.
Using this approach you would enter say $10,000 at the top and then enter two lines in the middle of the screen, one at $1,500 with one of your contribution accounts and the other at $ 8,500 with your wife's contribution accounts. Note that this will mean that this part of the contribution will basically count as your wife's contribution and will be allocated to her at the end of the year. Is this what you are looking to achieve?
Regards,
MySF
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Junior Member
Group: Forum Members
Last Login: 14/06/2009 10:57:44 PM
Posts: 4,
Visits: 13
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Hi,
thank you for replying. I am talking about Contributions Splitting as allowed by the ATO, where at the end of a financial year I can split my contributions for that year to my wife, assigning up to 85% of that year's contributions made to my account, to my wife's account.
Thanks, Mark
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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Hi,
Thank you for the clarification. This is a little different.
You should record contributions as normal during the year, but you should process one (or more) general journal entries at the end of the financial year prior to rolling over the fund. The journal entry would be as follows:
DR contribution account to decrease $ x
CR contribution account to increase $ x
where you would decrease one of your contribution accounts (under 4000 Income) and increase one of the contribution accounts in your wife's name.
Regards,
MySF
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Junior Member
Group: Forum Members
Last Login: 14/06/2009 10:57:44 PM
Posts: 4,
Visits: 13
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Great, thanks. I didn't think it would be that simple!
Mark
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Regular Member
Group: Forum Members
Last Login: 7/01/2012 5:57:22 PM
Posts: 21,
Visits: 177
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Hi,
Can you be more specific advise which account i should use to apply the split for the receiving member.
Should it be spouse contribution if the member is your spouse.
When the split of contribution is applied to an account just before a rollover the menbers allocation percentages change for the year.
So do i need to readjust these for the years profits to be applied correctly ?
regards
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MySF Administrator
Group: Administrators
Last Login: 29/01/2012 4:16:49 PM
Posts: 208,
Visits: 958
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| Hello, We have sent you an email in regards to this question. Basically, if you make a contribution on behalf of your spouse, it should go to the spouse account. It is completely up to you if you wish to use the software's automated allocation percentages on the Member Allocation Table screen. You can always override them on the same screen to whatever you feel are the correct percentages. Regards, MySF
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Regular Member
Group: Forum Members
Last Login: 12/09/2011 4:40:13 PM
Posts: 28,
Visits: 336
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| Hmm - I've noticed that if one uses this method, the "gross" contributions of the splitter (the member giving) are reduced, and the gross contributions of the splittee (the member receiving) are increased. If I am reading things correctly, the ATO says that the fund should still report the gross contributions as coming from the splitter and I'm wondering if this wouldn't be more properly handled by a Transfer Out from the splitter and a Transfer In to the splittee. If the splittee was in a different fund, then I think that would be the correct way to go, and I suspect this may also be true when both members are in the same fund. This way, I think the amounts are tracked and reported more closely/clearly. I may be wrong on this - just pondering (and waiting to hear if my auditor approves). Can you comment on the impact of a Transfer Out/Transfer In on the accounts in general? Cheers, Tony
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