Further information for clients
The impact on your member account of annual tax liability for Mason Stevens Super (Fund) is calculated once a year after the 30 June tax year-end in a crystallisation process. As a member of the fund this assessment is undertaken after the Fund’s income tax return for the income year has been lodged with the ATO to determine any tax credits or liabilities to be applied to your account. This includes reconciling contribution tax, income tax, franking credits, capital gain tax and tax credits on expenses.
If your account’s total deductions exceed the assessable income, then your account is in a loss position and any tax credits available to you are carried forward to future years until your account is in a taxable position to offset any liability with available tax credits.
The exact process applies to capital losses which are offset against capital gains, and any capital losses that cannot be utilised during the assessment year, are carried forward to future years.
It has been identified that this process had not been completed in a timely manner for the 2018 – 2021 income years therefore we wish to inform you that this assessment has now been completed in order to determine any tax credits or liabilities to be applied to your account relevant for the financial years outlined above. We have combined the outcomes of the above analysis with the 2022 crystallisation process.
Accordingly, following the completion of this analysis, you will see an adjustment in the cash transaction history of your Self-Directed Portfolio to reflect the appropriate tax position for your account held with the fund to 30 June 2022.
For the purpose of considering amounts to be refunded or charged to members, it is assumed that the annual tax crystallisation process took place on 1 March following the end of the relevant income year. The refund and payment amounts attributable to member accounts are analysed by the type of account (Super, Pension, Transition to Retirement). Each account is considered separately for each income year. If you were a member throughout this period, the account is considered for the relevant financial years in which you were a member of the fund. Due to the delay in the finalisation of the tax crystallisation process, if you are owed a refund, you will also receive interest compensation for this late payment.
In the event that you have established a transition to retirement or pension account on or after 1 July 2021, any tax credit amounts due or owed are processed from this new account.
What do you need to do?
No action is required from you.
Should you have any queries, please contact your nominated adviser or Mason Stevens Client Services on 1300 988 878.