Get your SMSF in order for 2019 EOFY

10 April 2019

ARE YOU READY FOR THE END OF THE 2019 FINANCIAL YEAR?  

If not, don’t worry we are here to help!

Below is a list of points to consider as we approach the end of the financial year, please review and if you need any help please contact our office.

Superannuation Contributions

• Are you interested in maximising your superannuation contributions?  Please remember there is more than one type of contribution that can be made to your superannuation balance. 

These include member concessional and non-concessional contributions, employer contributions, spouse contributions, in-specie contributions and the new downsizer contribution. 

From 1 July 2017, the rules and eligibility requirements to make these contributions have changed. If you are uncertain on what contributions you can make or require further information then please contact our office.

Event Based Reporting – For Members in Pension Phase

• From 1 July 2018, all SMSFs must report events that affect their members’ transfer balances (retirement phase income streams). Timeframes for reporting are determined by the total superannuation balances of an SMSF’s members.

If any member of the fund had a balance of $1 million or more as at 30 June then they are required to report 28 days after the end of the quarter.

Below are events that will affect your transfer balances:

• New retirement phase and death benefit income streams
• Commutations or lump sum payments made from your income stream

• If you have drawn more than your minimum pension payment during the financial year you may need to report this amount to the Australian Taxation Office.
• If you are considering commencing a new pension then you will need to report this amount to the Australian Taxation Office prior to the due date.

Minimum Pension Requirements

• Please ensure if you are in the pension phase that you have made the minimum pension withdrawal prior to 30 June.

Failing to meet the minimum pension requirements could lead to your fund losing the tax exemption with respect to the income and realised capital gains generated by the assets supporting the pension. As a result, the fund’s income will be subject to tax.

Related Party Lease Agreements

• Please ensure all rents as per the lease agreement and supported by a market appraisal is paid by the end of the financial year.  Paying too much rent or underpaying rent will put your Self-Managed Super Fund at risk of non-compliance.

Prior Year Audit Queries

• Please ensure all prior year audit queries have been resolved prior to 30 June, to avoid any further compliance risks.

Other Superannuation Tax Planning Considerations

• Are you looking to retire in the 2020 financial year?
• Have you made a large capital gain or income in the 2019 financial year and will have significantly reduced income in the 2020 financial year?
• Have you reviewed your SMSF 2019 investment strategy?

Next Steps

If you would like further details or assistance with respect to any of the above strategies, superannuation in general, or wish to have your SMSF 2019 position reviewed prior to 30 June 2019, please contact Gemma Woolley, Manager, Shakespeare Superannuation Services on 9321 2111.

General disclaimer: Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles on this website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose