Within the SMSF annual return, Mr Dunn noted that there are labels for the accumulation balance and the balances of pensions and a closing account balance.

“However, we then have two tables down the bottom, the accumulation phase value and the retirement phase value, which allow you to put in a different number if you believe the value of those accounts for the definition of total super balance will be different,” he said.

Mr Dunn explained that these values can be different from the account balance because they are based on a termination value which contemplates the value of a member’s interest if they were to voluntarily cease their interest in the fund.

The TSB value therefore allows for the adjustment of capital gains tax, windup costs, and disposal costs such as sales costs, brokerage, and other commissions, he explained.

This means that SMSF practitioners may want to consider the tax effect of unrealised gains when calculating the TSB, he said.

“If we have clients that have substantial unrealised gains but we haven’t considered them for the purposes of the accumulation phase value of an individual in the fund, that could be the difference between one or two years worth of NCCs,” he explained.

Mr Dunn noted that it's important to have evidence to support the values in the accumulation phase value and retirement phase value labels.

The retirement phase value is likely to be less to be different given the tax exemption that applies, he said.

“But if you have accumulation phase members, you can absolutely give consideration to these things for the purposes of that label,” he said.