5 SMSF Tax Strategies to consider prior to 30th June

Don’t leave it too late – review your Self Managed Superannuation Fund tax strategies now and seek advice before the 30th of June.

  1. The Double Dip: Your June contributions that are tax deductible this year can be allocated across two years.  This is a good strategy if you have had a good year or made capital gains on the sale of property or shares.  Seek advice and remember the what the contribution caps are and who is making the contribution(s).
  2. If you have business real property in your Self Managed Superannuation Fund you are allowed to prepay rent up to 12 months in advance and claim a tax deduction from your business entity. (Note it does not include sole traders or partnership structures).
  3. Check your Superannuation Contributions – overpaying means very high tax rates as a penalty.  This is particularly important when you are salary sacrificing as timing makes a difference.  Contributions claimed as tax deductions are assessable income to the fund when they appear on the funds’ bank statement.  As concessional contributions only need to be paid by 28 days after a quarter’s end you can easily miscalculate  what has reached your fund.  For SMSF Trustees, check your bank statements and for members of Retail, Government and Industry Funds check with your fund administrators and your payroll officer.
  4. Check for any payments you may have made on behalf of the Self Managed Superannuation Fund.  It is important that you check for amounts that may form a superannuation contribution in accordance with TR 2010/1 (ask your financial advisor if unsure).  This could be where you have paid for – rates and land tax on residential property, or the ASIC Fee for the corporate Trustee of the SMSF.  It is equally important to keep in mind that expenses belonging to the SMSF are not tax deductible on your personal tax return.
  5. Check to see if your Superannuation balance is getting close to the  $1.6 million transfer cap – at which point the tax benefits diminish substantially.  You will need to seek advice if you are.

This above is provided as information only and has been written in line with ASIC’s AFS Licensing requirements for accountants who provide SMSF services.

  • Bloomfield & Associates are not licensed to provide financial product advice under the Corporations’ Act.
  • Taxation is only one of the matters that must be considered when making a decision on a financial product.
  • You should consider taking advice from an AFS licensee before making a decision on a financial product.