Actuarial Certificate Requirements


Actuarial certificates are required to claim tax exemption on a superannuation fund which provides a pension. You may also need to obtain an actuarial certificate to make your superannuation fund to qualify as per the SIS regulations of the superannuation industry. Following are the types of fund and the requirements to obtain the actuarial certificate for both the type of funds respectively:

Types of Actuarial Certificate Requirements:

1.   The first type of actuarial certificate that you require is for the tax exemption of pension assets. This type of actuarial certificate is required under the Tax Act.

The actuarial certificate under this category is divided into classes – Segregated assets and unsegregated assets.

Segregated assets are those which come under the category of selected specific investment. These assets are set aside and the income from these assets is specifically the one that is paying an income stream benefit. The SMSF using the method of segregated assets will require the actuarial certificate under the following circumstances:

  • When the SMSF paid any sort of super income stream benefit apart from market linked pension, allocated pension or account based pension.
  • When the SMSF is paying from market linked pension, allocated pension or account based pension along with super income stream benefits.
  • For segregated assets, an actuarial certificate is required every three years.

Unsegregated assets are those where the assets of the fund are shared by all the members as a whole.

  • For unsegregated assets, an actuarial certificate is required every year.
  • The actuarial certificate for these funds must be obtained before the annual return is lodged by the funds.
  • This sort of funds requires an actuarial certificate which certifies that proportion of the income, which is exempt.
  1. The second type of actuarial certificate is required under the SIS legislation for the valuation of the pension assets for the purpose of adequacy. This kind of actuarial certificate must be obtained by a superannuation fund which provides pension and needs to qualify under type regulations of the superannuation industry.
  • An allocated fund does not needs this type of actuarial certificate
  • This kind of actuarial certificate must be obtained every year for the funds that qualify under the small funds category
  • This kind of actuarial certificate can be obtained every three years for the funds that qualify under the large funds category
  • The actuarial certificates for such funds can only be obtained after the actuarial evaluation of the fund’s net assets.

Category: Certificate Requirements

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