It’s that time of year to get your end of financial year tasks organised for your Self Managed Superannuation Fund (SMSF). Here is a list to tick off.
1. Pay minimum pension payments
Withdraw your minimum pension before 30 June 2023. Allow time for bank transactions to be processed to ensure you meet the minimum requirements.
The government support for retirees to manage their retirement savings by reducing the minimum drawdown requirements by 50% ends in the 2022/2023 financial year.
2. Time contribution payments
Contributions made through clearing houses can cause delays; clearing can take 7 to 30 days regardless of the initial processing date. Superannuation contributions are recognised when the transaction appears in the super fund’s bank account. Make contributions early to ensure they are received in your super fund by 30 June 2023.
3. Be aware of the concessional contributions cap
The 2022/2023 concessional contribution cap is $27,500. It includes employer superannuation guarantee contributions (SGC), salary sacrifice payments and personal concessional contributions. Contributions more than the cap may result in penalties being applied.
4. Review ‘Carry forward’ concessional contribution caps
This strategy allows you to make extra contributions to top up your super by utilising the carry forward unused concessional contribution cap strategy. Before making extra contributions, review your unused concessional contribution cap amounts that have accrued since 2018/2019 for up to 5 years. And confirm your total superannuation balance is less than $500,000 as at 30 June 2022 to be eligible to use the strategy. A carry forward unused concessional contribution cap report can be accessed via https://my.gov.au/
5. Work test exemption for Individuals up to age 75
If you are under 75, you can contribute to your super fund without meeting the work test by making non concessional and salary sacrifice contributions.
6. Review your insurance premium
For members holding insurance in their SMSF, review your policy for sufficient coverage.
For members holding insurance in an APRA Fund, review your policy for sufficient coverage and minimum requirements to keep the policy active.
7. Organise valuations
SMSFs with investments such as property and collectables must obtain a written market valuation as at 30 June 2023. Request a free valuation, from a reputable source to show evidence of objectivity and informative data eg. managing property agent. There were significant delays in obtaining valuations last year, therefore request the report sooner rather than later.
8. Review and update your investment strategy
Superannuation law requires Trustees to regularly review their investment strategy to assess if their SMSF meets the current and future needs of the members and their circumstances. If your circumstances have changed, it is worthwhile updating your investment strategy.
9. Organise your record keeping
Review your SMSF record keeping is up to date and in one secure place, ready for tax time.
10. Lodge outstanding SMSF annual returns
If your SMSF lodgements are not up to date, the ATO will change the status of the SMSF to “Regulation details removed” on the Super Fund Lookup website https://superfundlookup.gov.au/
The status change is twofold;
- Employers may elect not to pay SGC to the member’s SMSF account, and
- APRA funds won’t rollover member’s benefits to their SMSF.
Overdue annual returns may affect plans to make extra contributions and delay SGC payments.
Get in touch with us today if you would like assistance with;
- Confirming contributions already made for the 2023 financial year
- Confirming unused concessional contributions to date
- Updating your investment strategy
- Receiving a complimentary electronic record keeping system
- Lodging overdue SMSF annual returns
Disclaimer
This information is for general information only and does not constitute financial advice or take into account your personal needs, objectives and financial situation. Before making any decisions, we recommend you seek professional advice.
June 2023 ~ Kerrie Salvatore, Concise Super
© Concise Super 2023