To receive your CPD points, please complete and submit this assessment.

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1. If an SMSF has both account-based pension and accumulation balances and a new pension was commenced part way through a year do you need two actuarial certificates to claim ECPI? *

Yes, you need a separate actuarial certificate for the period prior to and after the pension commenced in order to claim ECPI

It depends, if the fund has disregarded small fund assets you only need one actuarial certificate for the year, otherwise you need two

No, only one actuarial certificate is required to claim ECPI as it applies over a full financial year and excludes any assets segregated for tax purposes

2. Is a transfer balance account report (TBAR) required to be completed for a deceased member when they were in receipt of an account-based pension prior to passing away? *

No, a TBAR does not need to completed to report a debit for the deceased member's pension balance on their death

Yes, a TBAR does need to completed to report a debit for the account balances of the deceased member's account-based pension

It depends, for automatically reversionary pensions you need to report the debit for the deceased member, otherwise you do not need to complete a TBAR

3. TRUE OR FALSE: If it is discovered after the end of a financial year that an account-based pension failed to meet the minimum pension standards a TBAR debit needs to be reported based on the balance at 30 June of the year the pension standards were not met. *

TRUE: even though the pension will not be eligible for ECPI from 1 July of the year the TBAR is completed based on the balance at 30 June

FALSE: because the fund loses ECPI from 1 July of the year it is the balance at this date that you must report

4. If a member makes a contribution by way of cheque to the SMSF and dates the cheque/provides it to the trustee on 28 June 2019, the cheque is promptly presented to the bank but the funds are not received into the SMSF bank account until 3 July 2019. In which year is the contribution received by the SMSF? *

The contribution will count for the 2018-19 financial year as that is the year in which the cheque was and it was promptly presented and honoured

The contribution will count as being received in the 2019-20 financial year based on the date the money was actually received into the SMSF's bank account

The trustee can choose which financial year to apply the contribution towards since it could be said to have been received in either financial year

5. If a fund has an SMSF paying a retirement phase income stream does it 'have' to claim ECPI? *

Yes the fund has no choice and must claim ECPI for income earned on retirement phase assets

No the trustee always has a choice about whether they want to claim EPCI or not in the annual return

It depends, income on segregated current pension assets must be claimed as ECPI. For other assets you may have a choice about whether to claim ECPI