Masterclass SMSF – Year End Checklist – 12 Tips for EOFY End of Financial Year – start now!

Masterclass SMSF – Year End Checklist – 12 Tips for EOFY End of Financial Year – start now!

SMSF – Year End Checklist – 12 Tips for EOFY End of Financial Year – start now!

Time is running out – only days left to the End of Financial Year (EOFY), it’s time to have a review to ensure all is in order and all ACTIONs taken by 30 June deadline, as well as collecting papers, documenting all transactions during the year are ready for the accountant and then auditor verification later.

Here is a recap of our post last month, with an extra notice about cut off dates (item 1 below) for end of year steps to consider –

1.     Super Contributions in the SMSF bank account If you want to claim super contributions in this tax year, they need to be DEPOSITED in full as cleared funds – act soon if you want to claim super by 30 June!

2.     Contribution Caps

The concessional contribution (tax deductible / employer) caps vary some years for ALL individuals, regardless of age (earlier years were higher). Take care – if you have more than one fund, ALL concessional contributions made to ALL your funds are added together and are counted towards the cap. MORE HERE

3.     Minimum Pension taken

If there are members in the pension phase, ensure they have received the required minimum pension amount by 30 June. Failure can result in the investment income derived from your assets supporting that pension no longer being exempt from tax and other penalties could apply. MORE HERE

4.     Claim Tax Deductions for Personal Contributions (Non-Concessional)

If you are claiming a tax deduction for your superannuation contributions, make sure you are eligible to claim the tax deduction – seek advice if you’re unsure. An error in over-contributing or claiming a tax deduction for personal superannuation contributions could have excess tax consequences.

5.     Off-Market Transfers

You are still eligible to conduct in specie contributions of shares to your fund. Listed stock held in your personal name can be transferred to your fund as non-concessional or concessional contributions (if eligible) to your SMSF. Consideration should be given to capital gains tax, contribution caps and the off market transfer procedures.

6.     Bring Forward rule

If you are under the age of 65, you can bring forward up to two years’ worth of non-concessional contributions, in one year, representing your non-concessional (after-tax) cap over a three-year period. SEE HERE

7.     Government Co-Contribution

Remember to take advantage of the Government co-contribution by making a non-concessional (after tax) super contribution before the end of the financial year. For every dollar of eligible contributions, the Government contributes 50 cents to your superannuation up to a maximum government co-contribution of $500. See Co-Contribution

8.     Investment Strategy was followed

Review your investment strategy and ensure all investments have been made in accordance with it, and the SMSF trust deed. Also, make sure your investment strategy has been updated to include consideration of insurances for members.

9.     Valuation of Investments

Ensure the assets in your fund have a current value. If you hold unlisted investments such as property or unit trusts, make sure you have documented a process of valuing the assets. It is best to have an independent valuation where possible. See the ATO’s Valuation guidelines for SMSF’s for further information. 

10.   Insurance Policies

Since 1 July 2014, new rules come into effect that will prohibit superannuation fund trustees from providing an “insured benefit” in relation to a member unless the insured event is entirely consistent with a superannuation condition of release. This means that Trauma policies and own occupation Total and Permanent Disability (TPD) policies will not be permitted. However, it is important to note these new rules will not apply to policies taken out prior to 1 July 2014.

11.   In-House Assets

If your fund has any investments in in-house assets you must make sure that at all times the market value of these investments is less than 5% of the value of the fund. Do not take this rule lightly as the new SMSF penalty powers will make it easier for the ATO to apply administrative penalties (fines) for smaller misdemeanors ranging from $820 to $10,200 per breach, per trustee!

12.   Estate Planning

Review what will happen should a member prematurely die. Ask yourself how will the fund continue? What death benefit nominations are in place? Are the investments able to be quickly cashed? If the fund has life insurance policies, are they appropriate for the members needs, and are the policies correctly set up in the fund? 

Want to learn more, know the options and what we need to retire on,

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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