End of financial year

Well there we have it. Another financial year is coming to an end and what a massive year it was. We saw the super reforms announced in November 2016 in full swing and managed to navigate the complexities. An election is coming up which may result in further changes that could impact your retirement planning. While we await the outcome, let’s look at what we should be doing to get ready for 30 June 2019.

 

We don’t like complicated. Who does right? So let’s use the below checklist to ensure you have considered and actioned everything you need for your superannuation:

Members in pension phase

  • Are you in pension phase? Check you have taken your minimum amount before 30 June 2019.
  • Will you be commencing a pension 1 July 2019? If so make sure you prepare and sign the appropriate documents.
  • If you are commencing a pension on 1 July 2019 consider if you need to lodge a TBAR report (see our blog if you are unsure what a TBAR report is here (Transfer Balance Account Reporting)
  • Do you receive franking credits but your fund is 100% tax free? Discuss with your advisor as to how you may be impacted by the potential changes to refundable franking credits
  • Is your balance over $1.6m and have you considered withdrawing the excess before 30 June 2019 as a lump sum? Discuss with your advisor to optimise your tax position and ensure appropriate documents are in place. Read our blog on lump sum payments here (Lump Sum vs Pension Payments)

Contributions

  • Have you considered making a personal concessional contribution to super before 30 June 2019? Discuss with your advisor to optimise your tax position. Read our blog on these contributions (Making Personal Contributions to Super)
  • Do you make contributions from your trust or business? Make sure they are deposited well prior to 30 June 2019 to ensure they clear the bank account.
  • Will you be making non-concessional contributions to super? Confirm with your advisor that you are eligible to do so first! Check out our blog on the current contribution caps (Changes to Contributions Caps)
  • Are you turning 65 or 75 next financial year? Consider the changes to your caps and learn about the work test here – What is the work test?
  • Have you considered splitting last year’s contributions with your spouse? Ensure you have completed the appropriate forms before 30 June 2019 and submitted to your super fund (see our blog on the benefits of contribution splitting here – Benefits of Contributions Splitting)
  • Have you considered putting a salary sacrifice arrangement in place with your employer? Ensure you have completed the necessary paperwork before 30 June 2019 to have in place for 2020. Read our blog on salary sacrificing to super  – Salary Sacrificing and your contribution caps.

Other considerations

  • Do you own property in your fund? Consider engaging a real estate agent to provide you with an appraisal at 30 June 2019
  • Do you want to wind up your SMSF before 30 June 2019? This can be a complex process so contact your advisor immediately to consider your personal situation and arrange finalisation if appropriate
  • Is your estate planning in order? Contact your advisor to check your current documentation
  • If you have an SMSF is your fund as automated as possible? Read about the benefits of automation here – The Benefits of Automation.

 

That is a lot to get through in only a few weeks so get in touch with us here if there is anything we can assist with.

 

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.