SMSF Tax and YE TIPS
SMSF Tax and Year End Planning Tips for FY2014
As the year end is getting close, it is essential you get your year end planning done right!
We provide some useful tips for your SMSF tax and year end planning.
1. Review Concessional Contributions
Maximise contributions up to concessional contribution cap ($35,000 for those aged 59 years or over on 30 June 2013, $25,000 for others). Ensure you do not breach the caps and trigger excess concessional contribution charge. For members over 65, you must meet the work test rule to make contributions.
2. Review Non-Concessional Contributions
Maximise Non-Concessional contribution cap up to $150,000. Non-concessional contributions are sourced from your after-tax income, which means the full contribution reaches your superannuation account, and no tax is deducted when the contribution reaches your fund. No tax is deducted from a non-concessional contribution because you haven’t claimed a tax deduction, or received any other type of tax concession, before making these contributions.
3. Review Bring-Forward-Rule
If you are under the age of 65, you can bring forward up to two years’ worth of non-concessional contributions, which means you can make up to $450,000 in super contributions in one year, representing your non-concessional (after-tax) cap over a three-year period.
4. Minimum pension payment
If you are in pension phase, ensure the minimum pension has been withdrawn. For transition to retirement pensions, ensure you have not withdrawn more than 10% of your opening account balance this financial year.
The following table shows the minimum percentage factor for each age group.
|Minimum % Withdrawal|
|95 or more||
5. Government Co-Contribution
Check your eligibility for the government co-contribution and take advantage if eligible. You receive a tax free super contribution from the Federal Government when you make a non-concessional(after-tax) contribution to your super account, subject to you satisfying a work test, an income and an age test.
For your eligibility, click on below link which will direct you to ATO’s Super co-contribution calculator.
6. Work Test for members over 65
If you have reached age 65, you should review your eligibility to make super contributions by ensuring you have met the work test. The work test means you must be gainfully employed for 40 hours over 30 days. The 30 days can be any 30 consecutive days within the financial year. It’s a minimum requirement. There are no maximum limits to how much you can work. Gainful employment means you are employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.
7. Notice of Intent to Claim a Deduction
If you are planning on claiming a tax deduction for personal concessional contributions you must have a valid ‘notice of intent to claim a tax deduction’. If you intend to start a pension this notice must be made before you commence the pension.
Click on below link for a copy of this ATO form.
8. Review and Update Investment Strategy
Ensure you have reviewed your investment strategy. Also, make sure your investment strategy has been updated to include consideration of insurances for members.
If you have any SMSF questions, please call SuperHelp on 1300 736 453.
Article Disclaimer: This information should not be considered personal financial advice as it is intended to provide general advice only. The article has been prepared by Superhelp Australia Pty Ltd without taking into account your personal objectives, financial situations or needs.
The information contained in the article may not be appropriate to your individual needs therefore you should seek personal financial advice before making any financial or investment decisions.
Book Your Free SMSF Consultation
Book your free consultation with me to find out if SMSF is right for you. If you have any other questions, we are happy to help!
Why is SMSF Set up free at SuperHelp?
SuperHelp have been servicing the SMSF market for over 15 years. We pride ourselves in being able to provide an affordable SMSF service without compromising on quality. One of these services are to provide new members with setting up their SMSF for free when they use our award winning service.
Do I need to use a specific bank, broker or provider?
Unlike other SMSF administrators and accountants we do not restrict you to what bank, broker or service provider you use. We are independent and do not take any commissions from other parties so that our clients can invest their super where they please.
How long has SuperHelp been around for?
SuperHelp have been around since 2002 - so over 15 years! While new SMSF administrators have come and gone, we are still around!
I'm not sure if I want to start an SMSF, what should I do?
Starting an SMSF should not be taken lightly, we encourage you to book a free SMSF consultation with one of our expert staff to find out if SMSF is right for you. You can book a suitable time here or feel free to give us a call on 1300 756 453 during business hours.
How much is your ongoing annual administration fees?
Our first year introductory offer for new SMSF or transferred SMSF are $899 + GST regardless of asset types. Subsequent years are dependent on the number of assets and asset types you have - please use our calculator to estimate your fee. You will find that our fees are very reasonable to the quality provided within the SMSF market.
Do you have an SMSF newsletter that I can sign up to?
Yes! We send out a quarterly SMSF newsletter to all of our clients and anyone interested in SMSF. You can sign up here :
Do you offer any other SMSF services?
Yes we do! You can see a full list of SMSF services on our services page.
SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.