This is sample case study wherein a Self Managed Superannuation Fund makes the Investments and receives Franked dividend and Imputation Credits.
This Imputation credit can be set off against the Fund’s tax liability and excess imputation credit will be refunded by Australian Taxation Office to the Superannuation Fund.
In our example, we have assumed Superannuation Funds makes all the investments in Listed Securities.
Upon commencement the Superannuation Fund has a balance of $ 1,075,000 and this amount was invested in following securities:
| SECURITY DESCRIPTION |
TOTAL HOLDING |
AVERAGE COST |
TOTAL COST |
MARKET VALUE |
ADEL BANK CAP NOTE |
1,000 |
101,052.75 |
101,052.75 |
100,450.00 |
ADEL BANK 6% PREF |
1,020 |
109,687.81 |
109,687.81 |
102,918.00 |
ADEL BANK PREF |
975 |
104,289.15 |
104,289.15 |
101,010.00 |
ANZ BANK FPO |
1,000 |
27,428.43 |
27,428.43 |
28,990.00 |
ARGO FPO |
6,181 |
28,392.34 |
28,392.34 |
49,757.05 |
ASX FPO |
1,000 |
30,907.65 |
30,907.65 |
48,700.00 |
BHP BLT FPO |
1,450 |
27,606.54 |
27,606.54 |
49,300.00 |
BRICK INV FPO |
31,000 |
40,996.05 |
40,996.05 |
46,655.00 |
BORAL LTD FPO |
2,500 |
18,822.01 |
18,822.01 |
22,375.00 |
CWLTH BANK FPO |
962 |
33,636.54 |
33,636.54 |
52,429 |
CENTRORET STAPLED |
10,567 |
15,266.10 |
15,266.10 |
18,492.25 |
CENTRO. STAPLED |
1,700 |
8,542.00 |
8,542.00 |
14,977.00 |
CSR FPO |
8,000 |
19,999.15 |
19,999.15 |
27,280.00 |
GUNNS FPO |
5,250 |
15,180.17 |
15,180.17 |
17,797.50 |
HOME BUILD FPO |
1,750 |
24,411.84 |
24,411.84 |
25,200.00 |
INSUR AUST 5.8% PREF |
606 |
62,527.63 |
62,527.63 |
60,145.50 |
IAN FIN NZ EXCH NOTE |
285 |
28,712.65 |
28,712.65 |
28,514.25 |
MACQ CNTRY UNIT |
13,000 |
24,971.70 |
24,971.70 |
28,600.00 |
MIRVAC GRP STAPLED |
16,000 |
63,357.34 |
63,357.34 |
91,520.00 |
METCASHLTD FPO |
3,300 |
15,146.80 |
15,146.80 |
15,213.00 |
NAT. BANK FPO |
175 |
5,364.37 |
5,364.37 |
7,099.75 |
NAT BANK NATINCSEC |
981 |
99,949.82 |
99,949.82 |
99,914.85 |
ST. GEORGE FPO |
1,000 |
7,028.10 |
7,028.10 |
35,530.00 |
STOCKLAND.STAPLED |
6,300 |
38,916.42 |
38,916.42 |
53,361.00 |
TRINITY STAPLED |
17,000 |
1.1627 |
19,765.05 |
49,980.00 |
TELSTRA IRS |
10,000 |
2.000 |
20,000.00 |
33,500.00 |
TRUST CO FPO |
2,000 |
6.6337 |
13,267.44 |
23,800.00 |
WESTPAC FPO |
1,550 |
21.1788 |
32,827.17 |
39,571.50 |
WESTFIELD STAPLED |
2,244 |
14.2677 |
32,016.64 |
46,899.60 |
WOODSIDE FPO |
400 |
13.3472 |
5,338.89 |
18,000.00 |
The Super Fund has received the following dividends from the above investments in one year:
Dividends Franked |
$46,604.00 |
Imputation Credits |
$19,973.00 |
Dividends Unfranked |
$568.00 |
Total Income |
$67,145.00 |
Less: Administration expenses |
$3,000.00 |
Net Income |
$64,145.00 |
Tax on Net Income @ 15% |
$9,621.75 |
Less: Imputation Credits |
$19,973.00 |
Tax Refundable |
$10,351.25.00 |
The super fund's income will be further increased/decreased by capital gain/loss on sale securities. In our example we have assumed that fund has not sold any securities during the year.
Please note that income and tax liability will differ on the basis of investment portfolio and performance of the security.
Further, when the fund is converted from accumulation phase to Pension paying fund and all the assets of the fund are utilised to pay the pension to members on fulfilling the condition of benefit payment, the fund's total income is exempt from income tax including capital gain on sale of securities.
At this point in time the fund would be entitled to a tax refund of $19,973 being the total imputation credits.
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