SMSF 2022 EOFY Guide

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 amounts before 30 June 2022. Allow time for bank transactions to be processed to ensure you meet the minimum requirements.

The government has helped retirees manage their retirement savings by reducing the minimum drawdown requirements by 50%; this continues to apply to the 2021/2022 and 2022/2023 financial years.

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 by 30 June 2022.

3. Don’t exceed the contributions cap

The 2021/2022 concessional contribution cap is $27,500. It includes employer superannuation guarantee contributions (SGC), salary sacrifice payments and personal concessional contributions.

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 2021 to be eligible to use the strategy.

5. Work test exemption for Individuals up to age 67

If you are under 67, you can contribution to your super fund without meeting the work test. However, if you are between the ages of 67 and 74, you will need to satisfy the work test before you can contribute to your super fund.

6. Review your insurance premium

Review the insurance premiums for sufficient coverage for members who hold insurance in their SMSF.

7. Organise valuations

SMSFs with investments such as property and collectables must obtain a written market valuation as at 30 June 2022 to comply with regulations. You can request a free valuation from a reputable source to show evidence of objectivity and informative data eg. managing property agent.

8. Review and update your investment strategy

Superannuation laws require 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

Record keeping can be ignored until the Accountant asks for the information. It is a good time to ensure all your 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. The status change is twofold;

1. Employers may elect not to make SGC payments for the members, and
2. APRA funds won’t rollover member’s benefits to the 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 2022 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 2022 ~ Kerrie Salvatore, Concise Super
© Concise Super 2022