Services

Services

We'll take the Headache out of SMSF Compliance.


Our small, independent team have a detailed understanding of Self-Managed Superannuation and ECPI regulations. We provide expert experience in preparing Actuarial Certificates for Accountants, Financial Advisors and SMSF Administrators Australia wide.

Types of Certificates we issue

Account based pension certificates can be requested directly through BGL Simple Fund Desktop, BGL Simple Fund 360. Class Super and Super Mate. We also offer an excel based application form.

All you need to do is to complete the Excel based application or use your existing software to request a certificate from Act2 Solutions.

A preliminary tax exempt percentage will be calculated (either by the application form or by the SMSF administration software) and you will receive the Actuarial Certificate, confirming the tax exempt percentage, via email as a PDF attachment.

We will also provide free amendments to ACT2 certificates if required.

Defined Benefits Certificates

If you have funds with Defined Benefit Pensions such as:

  • Complying Lifetime
  • Life Expectancy
  • Flexi Pensions

You will need a year end defined benefits certificate

Those Funds with at least one Defined Benefit Pension require an annual actuarial certificate.

This certificate assesses the Fund's solvency, and provides an opinion on whether the assets are adequate to meet the high probability test. It includes a Section 295-390 certificate of income tax exemption for the previous financial year.

To apply for this type of certificate, please download and save the Excel application form to your computer. Once completed please save a copy for your records and email the completed form to act@act2.com.au

SMSF Knowhow and Insights

When do I need an account based certificate?

An actuarial certificate is required to support claims for exemption from income tax for the pension portion for those funds where there is at least one accumulation balance and at least one pension balance throughout the year, and these balances aren't fully supported by segregated assets for at least one full income year.

How have the requirements to obtain an actuarial certificate changed? 2015

The ATO have clarified that the industry approach regarding when a certificate is required or not is appropriate. After a bit of a miscommunication/misunderstanding earlier in 2015, the ATO have had discussions with Act2 and other actuarial certificate providers and agreed that in the circumstances where actuarial providers generally advise their clients that no certificate is required, this approach is acceptable to the ATO.

These circumstances are:

  1. When a Superannuation Fund moves entirely from Accumulation Phase to Pension Phase at one date during the income year and remains entirely in Pension Phase for the rest of the year, no certificate is required to claim Exempt Current Pension Income (ECPI). This is because the earnings received prior to commencement are taxable and can easily be identified as separate to the Pension Earnings that were received after Pension Commencement which will be exempt. This circumstance is commonly known as 'segregation by default' as the Pension Assets are separate from the Acccumulation Assets but without explicit segregation having to take place.
  2. Circumstances where the amount of ECPI eligible for exemption is minimal (say less than the cost of the actuarial certificate). In this circumstance, most actuarial providers will advise the client that the Trustees will be better off simply paying the extra bit of tax, rather than spending the cost of the actuarial certificate to save less than that in income tax.

We understand that this information will be further clarified on the ATO website shortly.

Which pensions are Account-Based Pensions (ABPs)?

Allocated Pensions, Term-Allocated/Market-Linked Pensions, Transition to Retirement Income Streams and Account-Based (SIS) Pensions are all known as ABPs.

Which pensions are NOT ABPs

This is simpler - those Defined Benefit Pensions (commonly referred to as Complying Pensions) are not ABPs that are known as:

  • Lifetime Complying - 1.06(2),
  • Life Expectancy Complying - 1.06(7) or
  • Commutable/Flexi/Non-Complying Pensions - 1.06(6)

These all require a special Actuarial Certificate every year - regardless of the fund circumstances.

Why Act2

  • No wasted time putting down and picking up jobs.
  • Act2 is a proven and trusted provider in this space.
  • We are integrated with all major SMSF Administration platforms.  Certificates can be requested from directly within BGL Simple Fund Desktop, Simple Fund 360, Class Super and SuperMate.
  • The accuracy of our actuarial certificates is guaranteed (subject to the quality and accuracy of data provided).
  • Certificates checked and signed by David Quinn-Watson BSc (Hons), FIAA of DeeDeeRa Actuaries - an actuary with 20 years of superannuation experience.
  • You will always receive personalised service from the Act2 Team.
  • We are readily accessible for technical queries you may have.
  • You can access a written actuarial opinion if needed.
  • Fast turnarounds for certificates requested via our partners BGL, Class and SuperMate.
  • Monthly payments via BGL, Class and SuperMate mean less administrative work for you.
  • We will prioritise certificates (for complying lifetime pensions) when requested.
  • Free amendments to previous certificates.
  • We also have application forms that are Excel based, these can be saved for future reference, altered for requesting an amendment or passed on to colleagues for checking prior to submission.
  • Invoices can be addressed to the Administration Company, Trustees or a Third-Party - the choice is within the application form itself.
  • Our forms show the tax exempt percentage and the ratio of pension to accumulation throughout the year graphically. This means you can quickly and easily check to ensure the information provided reflects the fund circumstances.