.png)
the member aged 71 contributed $20,000 in the 2022 year and did not meet the work test. however from 01/07/2022 the work test has been dropped so he would be able to contribute for the 2023 year. What should be the accounting treatment. As this was detected last week, should the fund repay the $20,000 then deposit again.
top of page
THE AUDITORS INSTITUTE | FORUM
Archived Forums
When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.
Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.
Disclaimer
The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.
bottom of page
Hi Elizabeth
If the contribution was not allowed to be received in the 2021/22 year it should be taken up as a liability at 30 June 2022 and repaid as soon as possible.
SIS regulation 7.04 requires that:
"the fund must return the amount to the entity or person that paid the amount within 30 days of becoming aware that the amount was received".
The above is based on the SIS legislation in effect during the year ended 30 June 2022. As you note the SIS legislation has changed with effect from 1 July 2022 in relation to work test requirement for those under the age of 75.
Thanks
SMSF AAA