The Fund Setting screen consists of four tabs that group the sets of related data items:

• Fund Defaults
• Fund Policies
• Integration Settings
• Investment Register Settings
• Client Access

Fund Defaults

This allows for setting up a variety of accounting policy settings once a fund or portfolio has been created. A number of these settings can have default values specified at Business level.

Options on the Fund Defaults tab take effect immediately, except for any change to the GST status. Switching between Registered and Non-Registered for GST will not change any business events that have already been processed

If any of these setting are changed in a financial year where a period update has already been run, you will need to roll back and re-do the period update for the settings to take effect

Navigate to fund level > Settings > Fund defaults

General Ledger

1. Gross Franking Credits - Select Yes to have dividend franking credits included as fund income, Select No to have franking credits treated as tax adjustments only
2. Merge Market Gains - Select Yes to have unrealised and realised gains and losses in the Operating statement merged under the heading of Market Gains, Select No to have realised and unrealised gains and losses reported separately
3. Report Member Benefits Paid As Expense - Select Yes to have member benefits expense appear in the Operating Statement, Select No to have member benefits appear in the Liability for Accrued Benefits note in the Notes to the Financial Statements
4. Asset Valuation Method (SMSF or Portfolio) - Determines how the assets are valued after a period update has been run, for SMSFs this is always set to carry assets at market value Default for Portfolio is to carry assets at book cost, can be changed to carry assets at market value
   
   

Tax Return

1. Annual Return Address Default - Select which address will show on the Tax Return
2. Annual Return EFT Default - Select which EFT will show on the Tax Return
   
   

Fund Policies

This section is particularly important if you need to have an actuarial percentage entered for the fund.  You would enter a policy each year by clicking on the New Fund Policy button.

1. Start Date - Displays the start date
2. End Date - Displays the end date if applicable
3. Benefit Type - Default if Accumulation
4. GST Status - Displays the fund's GST Status
5. GST Tax Period - Displays only if applicable
6. Pension Exempt %(Actuarial) - Displays the percentage here
7. Pension Exempt % (Fund Expenses) - Displays the percentage here
8. Status - Displays as Active
9. Edit/Delete - Allows you to edit or delete the current policy
   
   
10. New Fund Policy button - Allows you to enter a new policy (Recommended to do each financial year)
11. Start Date - Should be set for an entire financial year period e.g 01/07/20XX
12. Benefit Type - Default if Accumulation but can also select Defined Benefits
13. GST Status - Default is Non-Registered but can also select Registered or Cancelled.
14. GST Tax Period - Mandatory if GST Status = Registered, Select from Annually, Monthly, Quarterly
15. Election of ECPI Calculation Method - Select either Proportionate Method or Both (Proportionate + Segregated) Method. (Please note this option is only available from the start of the financial year 2022 and if the fund switches between deemed segregated and unsegregated during the financial year.)
16. Pension Exempt %(Actuarial) - The pension exempt percentage is entered here
17. Apportionment Method for Fund Expenses - Method by which the Fund Expenses will be apportioned. Default is Calculating Using ATO Formula but can also select Manually Specify Percentage, or Use Actuarial Percentage
18. Pension Exempt % (Fund Expenses) - NA
19. Assets Segregated for pension - Select Yes or No
20. Defer Member Tax - Select Yes to have tax deducted once a period update is run, Select No to have tax deducted from concessional contributions immediately
21. Use Tax Effect Accounting - Default is No, Select Yes to access Loss/Gain provision buttons below
22. Capital Loss Provision % - Default is 10% (If the fund has an unused capital loss, the system will create a tax asset of a % of the unused capital loss)
23. Income Loss Provision % - Default is 15% 
24. Unrealised Gain Provision % - The system default is 15%, which is the rate before applying discounting for capital gains held for more than 12 months
    
    

In relation to Assets Segregated for Pension - From 1 July 2017, if one of the members has total super balance greater than $1.6m as at 30 June of the previous income year and the fund has retirement phase income streams, then you should not use segregated method to work out the ECPI. A warning message will appear in the Exceptions Report if this tick box was incorrectly selected.

Fund Returns

This section is only applicable for SMSFs. Fund Returns allows users to maintain a historical record of rates of return for a fund. The number of financial years that display is dependant on the date entered in the Fund Start Date Field on the Fund Details screen.

A historical rate of return for a specific year can be entered by clicking in the relevant Rate of Return (%) box for a specific year. To enter a rate of return click on the Edit button.

Integration Settings

The Electronic Service Address (ESA) provider will automatically flow through to the Annual Return document. Click on the SuperStream Provider drop down box and select the relevant provider the Fund wishes to use.  

The default is SMSF DataFlow. If you select another SuperStream provider, you will receive a warning message:

Changing from SMSF DataFlow to another SuperStream provider will opt this fund out of this solution. This means that all messages received by SMSF DataFlow will be rejected where another solution has been selected.

Investment Register Settings

This setting defines the strategy that will be used for selecting cost base parcels when finalising the realised capital gain or loss from a sale.

When initially created, a fund will default to the default to the Business Defaults.

1. Parcel Match Method - Select the parcel selection method from First in, First Out; Last in, First Out; Maximise Taxable Gain; or Minimise Taxable Gain
2. Property Market Valuation (Depreciation Worksheet) - Select whether or not the property revaluation will take Accumulated Depreciation into account
   
   

Client Access

The Client Access settings tab can be customised to show whether or not the period updates are automatically published on Client View.

The default setting for period update publishing to client view is set to Automatic Publishing.

To change this, simply select Manual Control from the drop-down menu. This option means that each time you run a period update, you would need to manually trigger the results of the latest period update to show on Client View.