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.

Want to become a Member?

Join Now

Already a Member?

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.

To test this feature, visit your live site.

Josephine Stockwell

Apr 28, 2023

Work Test

in SMSF Technical Forum

I am auditing a 30 June 2022 SMSF where a member is 72 years old and has made concessional contributions. She has received income from juror duty and claims she passes the work test. Does allowances from juror duties qualify for the work test, is it gainful employment? I can't find any information to support or otherwise. It seems to me to be passive income, but I could be wrong. Further, is it the duty of an auditor to prove or disprove allowable concessional contributions? Your thoughts would be very appreciated.

2 comments

Comments (2)

THE AUDITORS INSTITUTE

May 01, 2023

Hi Josephine

I have not come across this issue before.

My view is that jury service is a community service and would not meet the work test definition of being gainfully employed. Tha ATO definition of being gainfully employed is:

"employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment".

My view is the trustee should seek a private ruling from the ATO or obtain legal advice from a lawyer.

Do any other forum members have a view on this question?

Thanks

SMSF AAA

THE AUDITORS INSTITUTE

May 01, 2023

Replying to

Hi Josephine

Re the query re duty of auditors most auditors in your example would only request a declaration from the member that they have met the work test for the year.

For the year ended 30 June 2022, Regulation 7.04 did require the work test to be met to receive member contributions (taxable or tax free). If as auditor you were aware that the work test was not met in that year and member contributions were made that would be a breach of that SIS regulation.

Thanks

SMSF AAA