Reporting Form SRF 705.0

Components of Net Return

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form SRF 705.0 Components of Net Return (SRF 705.0). This form collects information on the components of net return for investment options.

General directions and notes

Reporting level

SRF 705.0 must be completed for each registrable superannuation entity (RSE), defined benefit RSE and eligible rollover fund (ERF).

Reporting tables

Tables described in this reporting form list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

The Unique identifier column indicates which field or fields form the primary key of the table. Where a field has ‘Y’ in the Unique identifier column, this denotes that this field forms part of the primary key for the table. A blank cell in the Unique identifier column means that the field does not form part of the primary key for the table. Any specific combination of values in the fields that form the primary key of a table must not appear on more than one row in that table when reported.

Reporting basis and unit of measurement

Amounts in SRF 705.0 are to be reported as whole dollars, dollars and cents on a per member basis or percentages. Percentages are to be reported as an unconverted number to four decimal places as specified. For example, 12.3456 per cent is to be reported as 0.123456.

Do not report in accordance with the Australian Accounting Standards when reporting in respect of each calendar quarter.

Whilst the information reported in respect of each calendar quarter is not required to be reported in accordance with the Australian Accounting Standards, an RSE licensee must ensure that the information reported in respect of the end of each quarter is the most accurate information the RSE licensee has available by the due date. This may, for example, include some fee and cost information provided to the RSE licensee after the end of the quarter. An RSE licensee will comply with the requirement to report the most accurate information available to it by the due date if they report the unit price or crediting rate as at the reporting date. Where the unit price or crediting rate has been required to be revised in accordance with the RSE licensee’s unit pricing or crediting rate policies, the RSE licensee must report that revised price or rate.

Where an RSE licensee is reporting in respect of an annual period ending 30 June, the valuation of any accrued amount must be undertaken in accordance with the Australian Accounting Standards. This means that an RSE licensee must report items on SRF 705.0 in respect of an annual period ending 30 June based on ‘hard close’ valuations, not ‘soft close’ valuations.

Items in SRF 705.0 must be reported as at the end of the reporting period, or with respect to transactions that occurred during the reporting period as specified.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections (SRS 101.0).

All references to Schedule 10 of the Corporations Regulations 2001 in these instructions are references to that Schedule as modified by the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 as in force or existing from time to time.

Specific instructions

Sign of numbers in reporting

Fees, costs and taxes would typically reduce a member’s balance. However, for the purpose of SRF 705.0 they should be reported as a positive number. If a fee, cost or tax is rebated and therefore works to increase a member’s balance, this should be reported as a negative number.

For example, when reporting an administration fee of $120.00 for the year ending 30 June, if the RSE licensee subsequently received a tax rebate in relation to the administration fee, and the rebate was passed back to members, this should be reported as tax of -$18.00 (for example).

No adjustment in sign is needed in reporting investment returns.

Attribution of data to superannuation product, investment menu or investment option

SRF 705.0 must be completed in respect of each superannuation product, investment menu and investment option (RSE structure level) offered by the RSE during the reporting period excluding the following:

investment options which are permitted to be aggregated in Table 3 of Reporting Form SRF 605.0 RSE Structure (SRF 605.0);
investment options which solely underlie defined benefits;
investment options which are reported on SRF 605.0 under investment option category Annuity;
products which are reported on SRF 605.0 under the Superannuation Product Category Type of ‘Insurance Only’ or ‘Whole of Life or Endowment’; and

investment options which solely underlie products with the Superannuation Product Category Type of ‘Insurance Only’ or ‘Whole of Life or Endowment’.

The reporting period is each year ending 30 June for the following:

investment options which are reported on SRF 605.0 with the Investment Option Type of ‘Listed Investment Company’,
investment options which are reported on SRF 605.0 with the Investment Option Type of 'Exchange Traded Product’, and
investment options which are reported on SRF 605.0 with the Investment Option Management Type of 'externally managed - non-connected entity’ and Investment Option Strategy Type of ' Non-connected entity’

Report fees, costs and taxes for the superannuation product, investment menu, investment option at which they arise or are incurred.

RSE licensees need to determine the appropriate reporting level for each of the applicable fees, costs and taxes depending on the structure of the RSE, defined benefit RSE and ERF.

Fees, costs and taxes may be incurred at each RSE structure level, but may vary depending on the combination of RSE structure levels a member is in.

For example, it is expected that administration fees will generally be reported at a superannuation product level, platform fees may sometimes be reported at the investment menu level, while investment management fees will generally be reported at the investment option level. The investment management fee for an investment option may vary depending on which superannuation product the member is invested through.

Where the fee, cost or tax is applicable to all members in the RSE structure level, the RSE licensee must report data for that RSE structure level and report ‘ALL’ for the remaining RSE structure levels.

Where the fee, cost or tax varies depending on the combination of RSE structure levels, the RSE licensee must report data for each relevant combination of superannuation product, investment menu and investment option.

For example, an administration fee that applies across all investment menus and investment options within a superannuation product would be identified with the relevant superannuation product identifier to which it applies. The investment menu identifier and investment option identifier would be reported as ‘ALL’.

SRF 705.0 requires the RSE licensee to report investment returns for each investment option.

Report the Gross investment return for all investment options on the annual return.

Report the indirect cost (non-RSE licensee) on the annual return for all investment options.

The Gross Investment Return less all reported fees, costs and taxes must equal the Net Investment Return as reported on 705.1.

Where the return is applicable to all members in the investment option, the RSE licensee must report data for that investment option and report ‘ALL’ for the remaining RSE structure levels.

Where the return varies dependent on the superannuation product and/or investment menu, the RSE licensee must report data for each relevant combination of superannuation product, investment menu and investment option.

Where the investment option type is Separately Managed Account or Managed Discretionary Account, report the investment return of the model portfolio.

Table 1: Components of net return

For each investment option that was available to members for part or all of the reporting period, report the components of net return as described in the table below. Where the components differ by superannuation product, investment menu or fees and costs arrangement this should be indicated by use of the appropriate identifier in these fields, otherwise make use of ‘ALL’ as described above.