SMSF tax readiness

Having your own SMSF brings with it a lot of responsibility when you are the Trustee. Not only are you trying to maximise a good return on the investments you need to be on top of all the rules to ensure your SMSF remains a complying fund. Here are some checks you as Trustee can do before 30 June:

Having your own SMSF brings with it a lot of responsibility when you are the Trustee.  Not only are you trying to maximise a good return on the investments you need to be on top of all the rules to ensure your SMSF remains a complying fund.  Here are some checks you as Trustee can do before 30 June:

Ensure that any contributions for 2020-21 are received no later than 30 June 2021.  If it is a day late, it most likely will be regarded as a contribution for the following year.  The caps for contributions to 30 June 2021 are $25,000 for concessional and $100,000 for non-concessional. 

However, be aware that there may be members who have a total super balance of less than $500,000 on 30 June 2020, that are also depositing into the SMSF their unused concessional contributions since 1 July 2018 which is fine.

If you have any members in pension phase, ensure they take their minimum pensions by the 30 June 2021.  As a consequence of COVID, a member may take advantage of the 50% reduction in the minimum pension withdraw.  It is critical that the minimum pension be taken otherwise any income on assets supporting the pension will be taxed at 15% rather than be tax exempt.

Finally, make sure that you have all source documents put aside for your Accountant. This will include all bankstatements , investment buys/sells and a list of all SMSF investments showing their market value as at 30 June 2021.  Should the SMSF own an investment property you will need a valuation from a Valuer or a Real Estate.

This is just a small snapshot of how to be SMSF tax ready for 2021.  For more information contact Leanne from LA Accountants 0479 160 009.