With 30 June fast approaching now is the time for you to take action on the superannuation reforms and other general end of financial year issues with these five superannuation tips.
Are you ready?
1. Ensure pensions are no more than $1.6m
The $1.6m pension cap comes into force on 1 July. The ATO has stated that they expect the members to have provided details of which pension to convert to accumulation in writing before 30 June 2017.
2. Obtain a market valuation of your assets
All assets of SMSF’s are required to be reported at their market value, where appropriate valuations or appraisals of value should be obtained.
Where you have the ability to revalue assets in an SMSF as a part of the transitional CGT relief, sworn valuations should be obtained for property, property owned in unlisted trust and other assets that are not listed.
3. Review the transition to retirement pensions
From 1 July, the tax exemption for income on assets supporting a transition to retirement pension will be removed. If you are currently receiving this type of pension, it should be reviewed to see if it is still relevant to your needs.
4. Make contributions In time
Contributions need to have been made to your superannuation before 30 June. In the case of cash contributions, the cash needs to be in your fund bank account by 30 June. With specific contributions of assets, all necessary documentation must prepared and signed by 30 June.
5. Withdraw the minimum pensions
If you are drawing a pension from your SMSF the minimum amount should be withdrawn before 30 June. If it is not the fund may lose its tax exemption on income earned as it may not be considered to be paying a pension this financial year.
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