In the Perpetual Super Wrap super fund, tax is calculated and paid at the fund level. To manage this, tax is handled in two main stages:
The annual tax calculation is a ‘true-up’ that includes various tax benefits and obligations that can only be assessed after the financial year has closed. This includes items such as:
Following the annual tax calculation, your client's account is either credited or debited. This transaction represents the difference between the tax amounts handled during the year and the account's final tax liability.
The final tax adjustment for a financial year is typically applied to your client’s account before the end of April in the following calendar year.
The final tax adjustment will appear as a specific transaction on your client's annual statement and in their online transaction history. It will be clearly labelled as either a 'Superannuation tax calculation adjustment' or 'Distributed tax calculation adjustment'.
When you change or close a client's super account, it’s important to know how tax-related adjustments are handled to ensure you receive everything your client is entitled to. See below for how tax adjustments are managed when:
For further information, please refer to the ‘Annual taxation adjustments’ section of the relevant Product Disclosure Statement.
If your client changes, closes or moves their super account within the fund, any tax adjustments that are calculated after the change (such as annual tax adjustments) are still applicable.
Where eligible, these amounts are generally:
You don’t usually need to delay a change within the same fund to receive these adjustments. Please note that timing can vary each year, and adjustments are applied once calculations are complete.
Members who leave the fund prior to the year's annual processing date won't receive the benefit of any franking credits, foreign income tax offsets or any revenue/capital losses that have accrued. The balance of this benefit is retained in the fund’s reserves and may be used to cover certain fees and costs of the fund.
For a reversionary pension, the beneficiary carries on the account of the deceased member and will receive any tax credit, or be subject to any tax debit accruing to the deceased member’s accounts.
For a non-reversionary pension, the beneficiary starts a new pension account in the fund. Therefore, there will be no tax debits or credits paid across to the new account.
A tax charge on a withdrawal is separate from the annual tax calculation. This is typically for:
If you have any feedback on this article or need additional support, please contact us via chat or email wrap@perpetual.com.au.
