There 2 methods to apply the exempt pension income and allocation of deductible and non deductible expenses .
1) Strictly applying the actuarial certificate percentage to income and expenses – easy to verify in an audit!!! Agrees to the % split per actuarial certificate - ( the one I like in audits).
2)ATO method – that applies the ATO ruling – this method the software magically calculates the deductible and non deductible expenses – which is different to the Actuarial certificate. How do you check the apportionment of deductions in this method?