Your SMSF tax checklist for EOFY


End of financial year (EOFY) is just around the corner, which means it’s time to get your taxes in order. For self-managed super funds (SMSFs), it’s also essential that you do your due diligence to ensure you meet all your compliance obligations – such as staying within the caps for concessional and non-concessional contributions. To help reduce your tax-time stresses, here’s a handy checklist of things you might have forgotten to do.

1-Calculate your minimum drawdown requirements

Just like 2019–20 and 2020–21, this financial year you can continue to take advantage of the temporary drawdown reduction. That means your minimum annual payments for super income streams have been halved from their usual rate. The exact amount will depend on your age, and it gets higher as you get older. Just remember that the minimum amount must be withdrawn by 30 June 2022.

2- Meet work-test requirements

For Australians aged between 67 and 74, you will need to meet the work test in order to claim a deduction on any personal super contributions. The good news is that starting from the next financial year (1 July 2022), those under 75 “will no longer need to meet the work test to make or receive non-concessional super contributions and salary sacrifice contributions,” according to the ATO.

3- Look over your investment strategy

Reviewing your SMSF’s investment strategy every year is a good habit to get into. Look through the figures for the past 12 months to ensure it still supports your financial goals for retirement. If not, it’s time to make some tweaks. If you are unsure about what type of investment strategy suits your needs, it pays to speak to an expert.

“We understand that not everyone who has a SMSF will be an experienced investor,” says Daran Thomson, Managing Director at Hallmark Consulting. “With our expertise, we can help define your long-term financial goals and set up an investment strategy that aligns with your risk tolerance.”

4-Claim the spouse tax offset

As long as your spouse’s income for the financial year was less than $40,000 (including super contributions and fringe benefits), you may be able to claim back up to $540 with the spouse tax offset.

5- Do some market valuations

Before EOFY is the ideal time to undertake market valuations for your assets, particularly unlisted ones. This will help ensure your fund’s assets stay within the transfer balance cap and total super balance limit.

6-Get audited

Your SMSF must be audited annually, and a trustee must appoint an approved auditor at least 45 days before you submit your SMSF’s annual return to the ATO. So don’t leave it to the last minute!

If you need SMSF support, investment advice or ongoing help with your finances, we can provide exactly what you need. Contact Hallmark Consulting or call 1300 135 295 to get started today.