Review if you have funds available to contribute to super; and review your total contributions to ensure they are below the caps.
Non-concessional (NCC - after tax) contributions are limited to $100,000 for FY18 and concessional (CC - before tax) contributions to $25,000.
Members under 65 years of age can contribute up to $300,000 in NCC over a three year period depending on their total super balance. Transitional arrangements also apply to individuals who brought forward their non concessional contribution caps FY16 or FY17.
Contributions must be received by your fund by June 30 in order to be counted for this tax year. With 30 June falling
on a Saturday this year, it would be prudent to make your contributions by Wednesday 27 June to ensure they are
received by your fund prior to the end of the financial year.
If you are receiving a superannuation pension, the minimum pension must be paid to you by June 30. While retail funds generally ensure this occurs on your behalf, if you are a member of a Self-Managed Super Fund (SMSF), this is the responsibility of the fund trustee, which usually means the member. Where these requirements have not been met, your fund will be subject to 15% tax on the earnings of the assets backing your pension, whereas NO tax would have applied if you are retired and/or over 65.
Effective from FY18, most taxpayers will be able to claim a deduction for personal super contributions they make to their fund prior to turning 75. Individuals aged between 65 and 75 will need to satisfy the “work test” to be eligible to claim the deduction. If you wish to do this, you must complete and lodge a notice of intent with your fund before June 30 and have this notice acknowledged (in writing) by your fund.
If you meet the relevant work tests and earn less than $51,813, it's also worth considering taking advantage of the Government super co-contribution. Under these arrangements, the government will contribute up to 50c/$ you contribute to superannuation this tax year up to $1,000.
For SMSF members in the accumulation phase, it is important that any expenses are actually incurred or paid before 30 June to be deductible in the current financial year.
The end of financial year is also a chance to rebalance SMSF pension accounts between spouses, to ensure that super balances are as even as possible and the $1.6 million transfer balance cap is maximised for each
Funds that were paying a pension at 30 June 2017 which continued to be paid to you or another member on or after 1 July 2017 will need to complete and lodge a Transfer Balance Account report on or before 1 July 2018.
Where you reduced assets to prepare for the July 2017 introduction of the transfer balance cap, you have until 2 July 2018, to choose to apply the transitional CGT relief. This choice is made by completing the CGT schedule in the 2016-2017 SMSF annual return.
This means you have until 2 July 2018 to lodge your 2016-2017 return with an election for CGT relief, or amend a previously-lodged return in order to include an election if you had not made it previously. The ATO have advised that no further extensions will be granted.
Premiums for income protection cover are, generally, tax deductible for all taxpayers. You may also wish to consider switching to annual premiums prior to the end of this tax year.
Now is a good time to assess your entitlement to tax deductions in total, including personal super contributions, income protection insurance premiums, investment loan interest and any other investment expenses and deciding if it is worth your while, rather than waiting until you lodge your tax return for the FY19 year, making a PAYG instalment
variation application in July, so that you receive the tax benefit in each pay period.
If you need assistance with any aspect of your end of year planning or reporting requirements, please feel free to call to arrange a time to meet so that we can discuss your particular requirements and circumstances in more detail.