The end of the financial year (EOFY) is fast approaching. For Self-Managed Super Fund (SMSF) trustees, a little preparation before 30 June can prevent costly penalties and maximise your retirement savings.
Here are the critical items you need to cross off your list:
1. Timing is Everything with Contributions
- Ensure the funds have cleared
Any contribution (concessional or non-concessional) must actually hit your SMSF bank account by 30 June 2026. Don't wait until the last minute, electronic transfers can take a few days to clear.
- Check your eligibility
Contributions cannot be accepted by your fund after you turn 75. Additionally, if you are over 67 and intend to claim a tax deduction for a personal contribution, you must meet the ATO's work test. This means proving you were gainfully employed for at least 40 hours within a consecutive 30-day period during the 2025/26 financial year.
- Check your limits
The annual concessional (tax-deductible) cap is $30,000. Exceeding your limits can trigger extra tax, so tally up your employer payments, salary sacrifice, and personal contributions carefully.
Those who have a total superannuation balance of under $500,000 at 30th June 2025 and you haven't fully used your contribution limits over the past 5 years, you may be eligible to make extra "carry-forward" tax-deductible contributions.
Non-concessional contribution limits where you do not claim a tax deduction are capped at $120,000 for the 2025/26 year (subject to your Total Superannuation Balance).Claiming a deduction?
If you plan to claim a tax deduction for personal contributions, remember to lodge a Notice of Intent to Claim form with your fund before you lodge your tax return.
2. Pay Your Minimum Pensions
- Take the cash
If you are drawing an account-based pension from your SMSF, you must withdraw your required minimum pension amount before 30 June 2026.
- No exceptions
This must physically leave the fund as a cash payment. Failing to meet the minimum means your fund could lose its tax-free pension status for the entire financial year!
3. Review Investments and Valuations
- Get market values
The ATO requires all SMSF assets (including property, shares, and unlisted investments) to be valued at market value as of 30 June every year. Start gathering your supporting evidence now for your auditor.
4. Check Related Party Transactions
- Keep it arm's length
If your SMSF interacts with related parties such as leasing a commercial property to your own business, or receiving distributions from a related unit trust, everything must be done strictly on commercial terms.
- Pay your rent
Ensure all rent payments from your business to your SMSF are fully paid up-to-date before 30 June, and that the rent reflects current market rates.
- Track trust distributions
If the fund expects income from a related unit trust, make sure the distribution is properly resolved by the trust by 30 June and paid to the SMSF in a timely manner.
Need help getting your SMSF sorted?
Superannuation rules can be tricky. If you need assistance checking your caps, the relevant transactions or prepping your paperwork, contact our team at Power Tynan today to ensure your fund stays fully compliant before the deadline.
