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When processing Pension funds, BGL recommend you first attend a Simple Fund Pensions Training Course, or refer to Lesson 5 and Lesson 6 in on-line Training Manual by clicking  Help
As a quick trouble-shooting guide to the above problem, check:
1. Check the Actuary Percentages
in Members, click the  Mode icon and check the Actuary Percentage has been input, and for all pension members, that the total adds to 100%.
2. Check the Linked Income accounts
Simple Fund only includes linked income accounts in the calculation of exempt pension income. The income account must be linked to an investment account that the fund holds at least one unit in.
To check if an income account is linked, you can either:
- from the Chart of Accounts, edit the Investment and click
 , or
- from the Simple Fund Explorer, click Account Enquiry and select the Investment account
If you are reconciling the Create Entries Report Calculation of Exempt Pension Income section against your Trial Balance, and an income account does not appear in the exempt income listing of the Calculation of Exempt Pension Income section, but does appear on the Trial Balance, then the most likely cause is that a link has not been created between the asset and the income account.
If you have income that has no related investment, such as ATO Interest, therefore the income account has no link from an investment account, you can
- Create a dummy investment account, under 'Other Investments' and link the income account to this, or
- through the Chart of Accounts, change the 'Tax Return' label in this income account, to 'Not applicable - permanent difference', causing this income to be excluded from tax.
3. Incorrect Tax Return and Regulatory Return labels
If your income account does not have the correct selection for the Tax Return or Regulatory Return label, this may not be included in Exempt Pension Income.
4. Dividends with tax components
One other unusual cause has been 'tax free' or 'tax deferred' amounts being posted to 'dividend' accounts (239), or accounts with the Tax Return Label set to 'Income - gross dividends (D)". Also check to ensure no capital gains ( discounted, etc) are recorded to these accounts. These amounts should only be posted to 'distribution' accounts (238), or accounts with the Tax Return Label set to 'Income - Income from trusts (X)".
5. Taxable Contributions
Assessable Contributions are not derived from pension assets and therefore do not receive an exemption from income tax. |
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