How to record Assetless Administration Funding and remuneration

There are no system accounts setup for Assetless administration funding transactions.

We suggest the following for recording the receiving of funding for Assetless Administrations and the payment of the funds to the appointee.

Receipt of Assetless Administration Funds

Create an account using the account type Revenue - Asset Realisation. Tick exclude from position 5602/5603 realisations (under the advance tab when creating the account) so the receipt is not included in Gross Asset Realisations.

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ASIC guidance on Assetless Administrations can be found here.

ASIC refer to the funding as a grant. The ATO in this link GST and grants | Australian Taxation Office (ato.gov.au) state "Government payments aimed at giving income support to business are typically not for a supply and therefore will not have any GST implications."

The receipt of funds will report on the F5602/5603 using ASIC category 'Other Receipts'

Drawing Assetless Administration Funding Remuneration

Create a Cost of Realisation account for Assetless Admin Remuneration as per below.

These fees are not reportable on the F5602/5603 under 3. Details of Remuneration. 

The payment will report on the F5602/5603 with ASIC Category 'Other Cost of Realisation'.