Item 18 - Other Transactions

If the fund has claimed an amount of exempt current pension income in respect of any pensions other than those prescribed by the Income Tax Regulations, where assets are fully segregated for all of the income year, has the trustee obtained the relevant actuary’s certificate or certificates required by sections 295-385 or 295-390 of the ITAA 1997 before exemption can be claimed?

Refer to Exempt current pension income question on the ATO website.

CCH References

13-140 Exempt current pension income

Is the fund or trust claiming a deduction for premiums for death or disability cover under section 295-465 that requires an actuary's certificate to be obtained?

Refer to Death or disability deduction on the ATO website.

CCH References

13-150 Cost of insurance premiums for death or disability benefits

Has the fund or trust made a payment or transferred a benefit that is included in the assessable income of the recipient under section 290-100 of the ITAA 1997? 

This item relates to payments made from a fund to an employer sponsor or to an associate.

Answer Y for yes or N for no.

Refer to Payments to contributing employers and associates on the ATO website.

This type of payment includes salaries, wages, commissions, superannuation contributions, allowances and payments in consequence of retirement or termination of employment, paid by a private company to associated persons. An associated person is a current or former shareholder or director of the company, or an associate of such a person.

Also include the amounts of salaries and wages paid to associated persons at Total salary and wage expenses (item 11 label C).

Record Keeping

Excessive remuneration paid to an associated person may not be deductible and could be treated as an unfranked dividend (refer to section 109 ITAA 1936). Records to establish the reasonableness of remuneration include:

• Age-if under 18.

• Hours worked.

• Nature of duties performed.

• Other amounts paid-for example, retiring gratuities, bonuses and commissions.

• Total remuneration.

CCH References

13-150 Allowable deductions - funds

13-710 Deduction - contributions by employers