Frequently Asked Questions
Member Account Related
| Question | Answer | |
| 1 | Can I segregate an asset to a Member instead of a Member Account? | No, assets are segregated to Member Accounts (Accumulation or Pension), not to Members. |
| 2 | Can each member have their own pool? |
If members only have accumulation or only have pension accounts. Then yes, the purpose of this segregation is for investment only. If one member has both accumulation and pension, then refer to Partial asset segregation This becomes a situation when the SMSF holding another SMSF for one particular member. The concern is with the income/expense exemption calculation. It is recommended to use Actuarial Percentage given the time and effort maintaining this small SMSF. |
Transaction Processing
| Question | Answer | |
| 1 | How to Process Transactions for a Segregated Asset Fund |
The events/transactions processed for an elected segregation fund are exactly the same as they are for a non-segregated fund. The allocation of profit/loss and tax for each member account can be viewed once the period update has been run. |
| 2 | Is the use of Carried Forward Capital Losses for one member account segregated from the other member accounts? | No, the SMSF is a single reporting entity therefore it cannot have taxable capital gains and unused carried forward losses in the same year. In Class, any anomalies in the tax calculation due to issues such as this are allocated based on weighted average balance to the taxable member accounts. |
Investment Related
| Question | Answer | |
| 1 | Does a separate bank account be set up for each asset pool? |
It is always recommended by ATO to set up a separate bank account for each Pool and ensure that all income relating to that pool is banked to that account. Similarly, expenses specific to the segregated pool should be paid from this account as well as a fair proportion of general fund expenses such as accounting fees. Refer to How to allocate Fund General Income/Expense to a specific member account |
| 2 | Can I allocate one particular investment to more than one member account? | Yes, but with limitations. Your options are to use the Default Pool where the income and expenses of this investment are to be allocated to all member accounts based on their weighted average balances, or to use the Default Pension Pool where the income and expenses of this investment are to be allocated to all pension member accounts based on their weighted average balances. Alternatively, you can set up the same investment with two or more holding accounts, each segregated to a different member account. |
| 3 | Are there any reports that will show the investments held in each asset pool? |
Yes. The following reports have an option to group the investments by asset pool:
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| 4 | Why there is no option to move investment to Asset Pool? |