With the end of the 2019 financial year just around the corner, it is time to review year to date transactions and consider what transactions are required to occur pre-30 June 2019.
These could include:
Concessional Contributions – the concessional contribution cap for the 2019 financial year is $25,000. Therefore depending on your individual circumstances (including age, personal income, employer contributions) it might be beneficial for you to top up your concessional contributions to ensure the full cap is utilised.
Non-Concessional Contributions – the non-concessional contribution cap is now dependent on your individual Total Superannuation Balance. Therefore there is now four different maximum non-concessional contributions caps (see table below). Non-concessional contributions can be a useful tool to build up your superannuation balance for retirement. These can be made from personal savings, in-specie transfer of allowable assets or even a recycling strategy (if you are in pension phase).
Minimum Pension Requirement – for individuals in retirement phase, it is essential to ensure that the minimum pension requirement is withdrawn prior to 30 June 2019. Failure to do so could result in the earnings within your SMSF being taxable at 15% compared to 0% if the minimum pension is drawn.
Unpaid Beneficiary Entitlement - if your SMSF invests in a related party unit trust, any outstanding unpaid beneficiary entitlement from 30 June 2018 should be paid across to the SMSF prior to 30 June 2019.
Rental Income – if your SMSF owns a commercial property that is leased out to a related party (e.g. medical suites or business premises) it is important to ensure that rent and rental outgoings are being paid by the tenant to the SMSF in a timely manner and on arm’s length terms.
Audit Management Letter – the management letter from the auditor, outlines any action that is required to occur prior to 30 June 2019. This could include repayment of unpaid beneficiary entitlements, reimbursements required to occur or property valuations. Reviewing this letter and ensuring the appropriate action has been taken prior to 30 June 2019 is essential for the 2019 financial year audit.