It’s important that, as SMSF Trustees, we have our ducks in a row both now and heading into the new financial year. Here is an important list of Trustee housekeeping tasks to review pre June 30.

Important tasks for SMSFs pre 30 June 2017

Meeting your minimum pension requirements
If your SMSF is in pension phase, please ensure your minimum pension has been paid for this financial year.

If the minimum pension hasn’t been withdrawn from your Super Fund’s bank account, the pension account may cease and the assets supporting this pension are deemed to not be in retirement phase, meaning your fund could lose its tax exemption on earnings!

We have now contacted all of our Trustees currently in pension phase who hadn’t withdrawn their minimum pension amounts.

If you are unsure whether you have met your minimum pension draw down, don’t hesitate to let us know and we can confirm this amount for you.

Taking lump sums from your superannuation
Once you reach 60 years of age, all lump sums from superannuation are tax free. However, before age 60, any lump sums that include a taxable component can be taxable. The taxable component includes the tax deductible contributions plus any income that has accumulated on your superannuation benefit. No tax is currently payable on taxable amounts of up to $195,000, in total, that you receive prior to age 60.

If you are eligible to draw amounts from superannuation you may like to defer receiving the amount until after reaching the age of 60 or until a later financial year when you may end up paying a lower rate of tax.

Changes to your Transition to Retirement pension
From 1 July 2017, superannuation fund members will lose the tax-exempt treatment of earnings on assets that support a transition to retirement pension (TTR). Members will still be able to start new or maintain existing TTRs, but they should be reviewed before 30 June in accordance with their SMSF’s objective.

Beware of excess contributions tax
Anyone making large superannuation contributions should exercise extreme care to avoid excess contributions penalties. This can apply to any tax deductible and non-tax deductible contributions made to super. Making sure you do not exceed the contribution caps will save you both the money and time of dealing with excess contributions tax.

Important tasks for SMSFs post 30 June 2017

It’s not too late to update!
The end of financial year is fast approaching and in light of the changes to Superannuation, it’s important for trustees to be assured their SMSF trust deed is up-to-date and compliant.
Acting outside of the Trust Deed could result in a breach and possible penalties

Some of the SMSF trustee powers that are now essential in respect of the legislative powers are:

  1. Power to allow different types of pensions to be stopped for the purpose of reducing or avoiding exceeding the transfer balance cap;
  2. Power to make catch-up concessional contributions; and
  3. Power to roll over death benefits.

In light of the coming changes, we will be reviewing all of your Super Fund Trust Deeds in the new financial year and where needed, we can arrange an upgrade to your Deed.

As always, if you are unsure about any of these upcoming changes, or you simply want to double check that your SMSF is prepared for the changes, don’t hestitate to get in touch by phone or email.

Be aware of other changes

Changes are also being made to the following areas of super. Make sure you know which changes affect you and how.

Want to know more? You can hear about all things SMSF from the newest sector of our firm: BIS Super