Income

6.2.2 Income: Contributions – In-Specie

To record In-Specie contributions for or on behalf of members, click the ADD CONTRIBUTIONS button on the INCOME tab. Select the Member on behalf of whom the contribution is/was made.

If you selected an In-Specie contribution in Contribution Class, Mclowd displays:

Income_contribution_InSpecie

Enter the Date of the contribution.

Enter a meaningful Description, noting what was contributed.

Select the Contribution Type.

Income - Inspecie contribution: sekect type

 


NOTE: When entering In-Specie contributions, the Co-contributions Non-Concessional option is not available.


Recent CHANGES TO LAW relating to Concessional Contributions affect posting of some types of Concessional Contributions.

In 2016–17, an individual (mainly those who are self-employed) could claim a deduction for personal super contributions where they met certain conditions. Generally, the individual would need to be deriving less than 10% of their income from employment. This was known as ”the 10% rule” and enabled the self-employed, who generally did not benefit from concessional employer contributions, to enjoy favourable tax treatment on their contributions to super.

Effective 1 July 2017, the 10% maximum earnings condition has been removed. From FY2017-18 onward, persons aged 65 to 74 who meet the work test, will be permitted.

(For further information, please refer to https://www.ato.gov.au/Individuals/Super/Super-changes/Change-to-personal-super-contributions-deductions/)

Adjustments are being made to Mclowd to accommodate this legislative change and permit selection of ”Personal – Concessional” contribution type.


Select the Asset Class for the contributed asset, and the Account (Fund or a specific Member Account).


NOTE:

The contribution will be credited to the account of the Member selected in the ”Contribution on behalf of” field above.

The Account selected under the Contributed Asset heading should be ”Fund”, unless the asset is to be held as a segregated asset and income or loss from this asset is to be attributed solely to a specific member account.

Generally, although the asset was contributed on behalf of a member and its value increases that member’s account, the income or losses derived from that asset are shared by the Fund between all member accounts by calculating profit shares based on member balances.


Depending on the Asset Class selected, Mclowd will display additional fields. For example, if you select Direct Equity, Mclowd will display:

Income_contribution_InSpecie_DirectEquity

If you select Hybrid as the Asset Class, Mclowd will display:

Income_contribution_InSpecie_Hybrid

The fields displayed will be the same fields as displayed when adding an asset of the same type, except that because the Asset is being contributed by a member, Mclowd will not provide a field for the account from which payment is made.

For detailed instructions for completing entry of an In-Specie contribution, please refer to:

When data entry in all fields is complete, click ADD CONTRIBUTION to save.

The cost of the asset will be added to the account balance of the selected Member Account and the Asset will be added to the Assets list.

 


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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