Hi victorinc, I think my answer was perhaps unclear in what I was saying about 'not being accumulation and pension pots', I don't mean there are not 2 accounts but that it is a combined fund and an actuary determines the splitup, unless the fund is segregated i.e. specific assets are specifically designated as pension assets and others specifically designated as accumulation assets. This doesn't happen to often, as far as I'm aware, unless it can benefit the fund / tax outcomes.
But actually, I realise I didn't explain myself properly as I was in a hurry and what I said wasn't quite right (I'm happy to admit when I'm wrong too). Here's my expanded answers to 1) - 4):
1) The dividend is part of the funds return for the year and from what I understand isn't normally allocated until 30 June in the example given.
2) Replacing $100 of cash with more shares doesn't change the value of the fund in itself, so it would be a 'pension' asset because at that time, there is no accumulation account (for now).
3) You are right that this would be a contribution and an accumulation account created because the pension can't be added to. But this is where the above answers change. Assuming the SPP is $1,000 then the Accum Acc is worth $1,000 but this is a $1,000 'share' in the total assets of the fund, including from the DRP above etc as there is no specific assets assigned to pension / accumulation UNLESS THE ASSETS ARE SEGEGATED (not shouting, just emphasising).
If as you suggest the contribution is deducted, then $150 tax must be withdrawn (from cash, the ATO doesn't take shares in lieu) and the accum acc is now $850. As I understand it (only roughly) most accounting software doesn't make time allocations to income so the whole years income would be totalled (inc DRP) and an actuarial certificate would determine what % of the income belongs to pension and what to accumulation and this would determine the 1 July starting values. Again, all the assets usually 'belong' to the fund, not pension nor accumulation, unless specifically allocated in the books = segregation of assets.
4) Yes, unless deductible, as you said. Although if employed then probably not possible and await the excess notice from ATO.
Sorry about the long winded explanation that has probably lost most readers by now, but this is how I understand it and covers many moot points and some observations that any accountants familiar witht he software may be able to crrect me on. I gotta go now before I fall asleep listening to myself.................
