How to process a Member Contribution Split
You can process member contribution splits effectively via Rollover/Lump Sum Out. Two business events need to be created and matched:
- Rollover/Lump Sum Out from the member splitting the contribution
- Rollover In to the receiving spouse
- Match off these two business events
Process the Rollover/Lump Sum Out event
Navigate to Fund level > Transactions > Member Payments > Rollover/Lump Sum Out
- Select the member splitting the contribution
- Enter payment date and description
- Select Condition of Release as "Contribution Splitting"
See the below example:
- Go to "Payee Details" tab, complete the required payee information
- Go to "Spouse Details" tab, complete the required spouse information
- Go to "Payment Details" tab, enter the amount in the "Gross Payment Amount" Field
Only preserved and taxable-taxed components are available for Contribution Splits.
- Click on Submit
If the receiver is not in the same fund, then match this event to Cash out from the bank.
After submitting the event, from the payment detail tab, click on "Generate Rollover Benefits Statement". This form should be completed and forwarded to the ATO.
Process Rollover In event
Navigate to Fund level > Transactions > Member Payments > Rollover In
- Select the receiving member, complete the date, description and amount
- Complete the preservation and tax components
The preservation components and tax components are available in the "Payment Details" of Rollover/Lump Sum Out event.
If the payer is not in the same SMSF, then only process Step 2 (Complete the preservation and tax components), match the Rollover In event with the Cash in into the bank.
Match Off these two business events
If both spouses are in the same fund, match the Rollover out event to the Rollover in event.
Refer to the ATO website Contribution Splitting for more information