With the end of the financial year (EOFY) fast approaching, attending to your Self Managed Superannuation Fund (SMSF) EOFY tasks is now a priority.
30 June 2024 is a Sunday; therefore, timing is critical.
1. Pay minimum pension payments
Withdraw your minimum pension before 30 June 2024. Allow time for bank transactions to be processed to ensure you meet the minimum requirements.
2. Super contribution caps – concessional contributions
The 2023/2024 concessional contribution cap is $27,500. It includes employer superannuation guarantee contributions, salary sacrifice payments and personal concessional contributions.
Please inform us if you plan to claim a deduction for the contribution payments via your personal income tax return. We will prepare a notice of intent to claim the deduction for the personal concessional contributions made.
3. Super contribution caps – non concessional contributions
The 2023/2024 non concessional contribution cap is $110,000 per year unless eligible to take advantage of the bring forward rule below.
4. Carry forward concessional contribution caps
The rule 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 accrued since 2019/2020 for up to 5 years. And confirm your total superannuation balance is less than $500,000, as at 30 June 2023 to be eligible to use the strategy. A carry forward unused concessional contribution cap report can be accessed via https://my.gov.au/
Before implementing the strategy, please get in touch with us to confirm your eligibility.
5. Make contributions to your spouse’s super
Spouse contribution – you can make contributions for your spouse if their income is below $40,000. You can claim a tax offset up to $540. This type of contribution counts towards their non concessional contributions.
Contribution splitting – you can apply to split your contributions with your spouse after the end of the financial year in which your contributions were made. You may want to do this, to;
– increase your spouse’s overall balance or
– even the member’s balance in the super fund.
Please get in touch with us for further information or to prepare the superannuation contributions splitting application.
6. Timing is key
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. Organise your contributions early to ensure they are received in your super fund well before 30 June 2024.
7. Organise valuations
SMSFs with investments such as property and collectables must obtain a written market valuation as at 30 June 2024. Request a free valuation
from a reputable source to show evidence of objectivity, informative data and at least 2 comparable sales figures. E.g. managing property agent. The valuation must be done at or around the date of 30 June 2024. Alternatively, you can request Concise Super to order a residential valuation.
This year, the ATO is targeting Trustees and Auditors who fail to meet the valuation requirements. For more information – https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-newsroom/valuing-fund-assets-correctly-for-the-smsf-annual-return
8. Review your insurance policy
Insurance premiums are constantly increasing. For members holding insurance in their SMSF, review your policy for sufficient coverage.
For members holding insurance in an APRA Fund (other than your SMSF), review your policy for sufficient coverage and the requirements to keep the policy active, e.g., making at least one contribution to the account each year. If you fail to adhere to the requirements, your insurance will automatically be cancelled.
9. 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 circumstances within your SMSF have changed, contact us to update your investment strategy.
10. Organise your record keeping
Review your SMSF record keeping is up to date and in one secure place, ready for tax time. We will send you a tailored checklist to collate your information before we start working on your SMSF. If you would like us to prepare it earlier, give us a call so we can schedule it.
11. Lodge outstanding SMSF annual returns ASAP
If your SMSF lodgements are not up to date, the ATO will change the status from “Complying” 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 super contributions 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 will delay employer super contribution payments.
Get in touch with us today if you would like assistance with;
- Confirming pension payments made to date and outstanding balance to meet the minimum requirement
- Confirming contributions already made for the 2024 financial year
- Confirming unused concessional contributions to date and eligibility to utilise the bring forward rule
- Updating your investment strategy
- 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 2024 ~ Kerrie Salvatore, Concise Super
© Concise Super 2024