Self Managed Superfund
- SMSF expenses Ensure that all SMSF expenses paid personally by yourselves have been accounted for as contributions and that you have not inadvertently tripped the contribution limits
- Member Life Insurance SMSF trustees are obliged to consider the life insurance requirements of members. If not done then this should be on your list of things to do immediately as fines apply for non-compliance with superannuation rules.
- Maximise your concessional contributions Use your higher concessional contributions while you can to save on tax and build your savings, but stay within the contribution limits for your age. Check with your payroll department to see how much you have contributed to date and look to maximise your contributions.
|Under 49 years on 1 July 2015
|49 or over on 1 July 2015
|Proposed New Rules from 1 July 2017
|Up to age 75
- Understand the proposed non-concessional contributions caps Under the proposed legislation there is now a $500,000 lifetime limit. if you have contributed $500,000 or more since 1 July 2007, you can no longer make any further non-concessional contributions but you do not need to withdraw any excess if contributed before 7.30pm(AEST) on 3 May 2016 . So the annual $180,000 limit and three-year bring forward rule are no longer valid. The $500,000 is a lifetime limit and you need to know your contribution history to all funds (open and closed) since 1 July 2007 before making any further contributions. This warning also applies to a common habit of just re-contributing pension payments not required to meet living expenses.On the positive side for those who have not used the limit or are over 65, you no longer have to use bring forward rules or meet a work test. You can now use your $500,000 whether working or not, anytime up to your 75th birthday.
- Investment strategy and insurance considerations Regulations are now in place that requires SMSF trustees to include, as part of the fund’s investment strategy, consideration of the insurance needs of the fund members. Document your discussion and decisions so that an auditor can be assured you have met your duty as trustee. If you don’t feel members require insurance then simply state that and the reason why in the strategy document.Remember that auditors are now required to be independent of your accountant and are under more ATO scrutiny and obligated to report breaches. New rules for paying for ‘own occupation’ TPD and trauma insurance in super have applied since July 2014, so be very careful about changing or moving pre-July 2014 insurance policies as you will not be able to replace like for like cover under the new rules.By investing time into creating a strategy for your fund this financial year, you stand the best possible chance for generating the most wealth in your SMSF.