Background
If you transfer the amount to a complying Australian super fund, the amount will generally count towards either or both of your contributions caps, and you may have to pay excess contributions tax.
If your fund receives a super lump sum directly from a foreign super fund, the member can choose to have some or all of the assessable part of the lump sum treated as assessable income of your fund. 15% tax will be applied to the assessable part of the lump sum. Such assessable amount is referred to as applicable fund earnings. It is essentially the growth in the foreign super fund between the time your member becomes an Australian resident and when the lump sum is paid.
When you process the rollover into a SMSF, you need to be mindful of the following:
Components
|
Tax Treatment |
Impact on Contribution Cap |
Tax Return Reporting |
Class Treatment |
---|---|---|---|---|
Applicable Fund Earning, member elects to be assessable income |
Assessable |
Does not count towards Concessional Contribution Cap nor Non-Concessional Contribution Cap |
|
Not supported currently - refer to the workaround below |
Assessable Foreign Super Fund Amount |
Assessable |
Count towards Concessional Contribution Cap |
|
Enter the amount via Transactions > Member Income > Member Contribution > Foreign Super Fund Amount Assessable |
Non-assessable Foreign Super Fund Amount |
Non-assessable |
Count towards Non-Concessional Contribution Cap |
|
Enter the amount via Transactions > Member Income > Member Contribution > Foreign Super Fund Amount Non-Assessable |
For more information, refer to our article, How to process transfer from foreign super funds into a SMSF in Class.