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SMSFs’ tax time checklist

Tax-time checklist

There are “several critical issues” SMSF trustees need to be aware of as the end of the financial year edges closer, the SMSF Association has said.

Chief executive John Maroney said SMSF trustees should have transfer balance account reporting, transitional CGT relief and reviewing super contributions on their radars.

The 2017-18 financial year is the first year in which lower concessional and non-concessional contribution caps have been law. This means trustees need to make sure they’re inside the legal thresholds, Mr Maroney said.

“However, it is also the first year where the ’10 per cent rule’ is removed for personal deductible contributions, meaning all individuals are able to contribute $25,000 in personal contributions and claim a deduction for them rather than only those who were self-employed,” he continued.

“These end of financial year issues can be complex and we would encourage any SMSF trustees who are unsure of their entitlements and obligations to seek specialist SMSF advice immediately.”

Mark in your calendar:

1 July 2018

“SMSF trustees need to be aware they may have to report a transfer balance cap income stream before 1 July 2018,” Mr Maroney explained.

“If a member in retirement phase was receiving an income stream on 30 June 2017 that continued to be paid after that date, this income stream must be reported on the transfer balance account report (TBAR) form before 1 July 2018.”

2 July 2018

Trustees need to lodge their 2016-17 annual return by this date. As Mr Maroney explained, this date is also the deadline for trustees to make an election for transitional CGT relief.

“The CGT relief rules allow funds to reset the cost base of assets affected by the introduction of the transfer balance cap and changes to transition to retirement income streams,” he elaborated.

“This is a valuable, one-off opportunity for SMSF members to minimise the impact of the changes on their retirement savings, and should not be overlooked.”

28 October 2018

Events occurring in the 2017-18 financial year need to be reported by 28 October 2018, or annually in the SMSF’s 2017-18 return.

This depends on the SMSF’s timeframe, Mr Maroney said, explaining that SMSFs with members receiving pensions and with total balances exceeding $1 million need to report their transfer balance cap events quarterly.

SMSFs’ tax time checklist
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