With a new financial year comes new responsibilities for SMSF trustees. From managing super contributions to reviewing your investment strategy, the start of a new financial year poses a suite of opportunities to conduct an SMSF review. We’ve shared our top tips for SMSF members wanting to get ahead of the game this new financial year.
Conducting an SMSF review
A new financial year is the perfect time to conduct an SMSF review. Reviewing your investment strategy and making changes accordingly is something that needs to be done at least once a year. Consider whether any members are approaching retirement, whether your investment strategy is too conservative or not conservative enough, and ensure that all decisions remain compliant with relevant SMSF laws. The turbulence of 2020 may have had an impact on your superfund or personal finances, and a comprehensive SMSF review will allow you to make relevant changes going forward.
Keeping up to date on new legislation
While conducting your SMSF review, it’s important to keep abreast of legislative changes to SMSF regulations. Changes to concessional contributions, carry-forward facilities and age-contingent work tests have come into play this year, and it’s the responsibility of all trustees to ensure they’re across the changes. Your superfund balance may also be approaching the point at which it breaches the $1.6 million transfer balance cap.
Your SMSF accountant will also be able to assist in keeping you compliant with updated regulations.
Planning your SMSF costs
Organising your SMSF costs at the start of a new financial year could be done as part of your tax planning process with your accountant. Effective tax planning allows you to maximise your tax relief using various legal structures, including strategically scheduling and deferring costs and deductions into the most favourable financial year.
Speak to your National Accounts accountant about how tax planning can benefit your SMSF and individual tax return. And if you have a property held in your SMSF, engage the services of a professional, like the team over at SMSF Valuation Reports, to budget for a report on the value of your property.
Planning your super contributions
If you spent the back end of the last financial year scrambling to take advantage of your SMSF contribution caps, resolve to make this year the year of organised super contributions. Where possible, maximising your super contributions, including spouse contribution splitting facilities, can be an effective way to reduce your tax liability and boost your SMSF balance at the same time.
For SMSF tax planning and support in organising your superfund for the FY20/21 year reach out to the talented team at National Accounts. Our team is expert in tax planning for family businesses, SMSFs, sole traders, partnerships, individuals and companies.