Get ready, SMSF trustees! The end of the financial year is upon us, and it's time to make some smart super moves. Follow our handy checklist, and let's power through these tasks to ensure that your Self Managed Super Fund is poised for success.
SMSF Contribution Timing is Key
As the financial year winds down, timing is everything for your SMSF contributions as you need to ensure your funds land in your super account by 30 June. If you use a clearing house, they might hold your funds for up to two weeks, and you don't want to miss the deadline. To sidestep any hassles, get your SMSF contributions settled by Monday 22 June.
Making Pension Payments From Your SMSF?
Make sure they're out the door before 30 June. If the minimum pension payment is not withdrawn before 30 June 2026, the fund may not be able to claim Exempt Current Pension Income, meaning the fund may have to pay up to 15 per cent tax on income generated from pension assets. This oversight could prove to be a costly error.
Be aware of death benefit tax
Are you aware that in the event of your death, the taxable component of your member balance could be taxed at 17%. It is recommended that you understand the implications and speak with your SMSF advisor to determine if a withdrawal and recontribution strategy can be undertaken to minimise the impact of this tax.
Review and Maximise Your Concessional Contributions
The FY26 cap for concessional contributions is set at $30,000. Stay within this boundary to avoid unnecessary complications. Timing your contributions is critical, as all contributions must be in your SMSF's bank account by 30 June 2026. If you're planning any last-minute contributions, account for processing times and contact your SMSF advisor if you need assistance with clarifying your contribution limits.
Make Use of Unused Carry Forward Concessional Caps
The carry forward rule permits you to make extra concessional contributions by using any of your unused caps from the last five financial years. Here's the key: To use this rule, your total super balance at the start of the financial year needs to be less than $500,000 across all your super accounts.
To see where you stand with your Unused Carried Forward Concessional Contribution space, take a peek at your records on MyGo or speak with your SMSF Advisor.
Explore Non-Concessional Contributions (NCC) Strategies
As of July 1 2022, you can make non-concessional contributions until you’re 75 years old without meeting the work test. The current cap is $120,000 or if eligible for up to $360,000 with the 3-year bring-forward rule, so plan accordingly for the next financial year. Speak with your SMSF advisor to get it right.
Be Aware of Division 293 Tax for High-Income Clients
Be mindful though of the Division 293 tax on concessional contributions by high-income earners. This additional tax of 15% applies when a client’s income exceeds $250,000. You can either pay this tax personally or release it from their fund, but you first need to wait until the ATO has issued the Division 293 notice.
Downsizer Contributions for Over 55s
If you're over 55 and sold your home this past financial year, you may be able to make a downsizer contribution to your super. Each member can contribute up to $300,000 from the proceeds of selling the home into their super, without affecting non-concessional contribution caps.
There are certain conditions to be met, be sure to speak with your advisor about this strategy if it’s of interest for your future super planning.
Boost Your Balance with Co-contributions
Check if you're eligible for the government's co-contribution to your super. (Because who doesn’t like free money!) The contribution amount you get varies depending on your income and how much you've personally contributed to your super. To work out your potential co-contribution, use the ATO’s super co-contribution calculator .
Splitting Contributions with Your Spouse
Think about dividing super contributions with your spouse. This is particularly beneficial if:
- There's one main income earner with a significantly larger super balance,
- There's an age gap allowing the younger spouse's pension phase to start earlier, or
- It could enhance eligibility for concession cards or age pension by keeping more funds in the younger spouse's super.
Check Your SMSF Loan Agreements
Got property investments in your SMSF ? It's time to revisit any loan terms your SMSF might have, particularly if you've offered special conditions like low or no interest rates. Ensure your loan agreements are up-to-date and consider whether you need to make any changes.
For any internal or third-party loans, make sure you're on track with repayments. Look into the possibility of paying interest in advance or locking in a fixed rate to make the most of the current low rates.
If your SMSF is involved in a Limited Recourse Borrowing Arrangement (LRBA) , confirm all the required payments have been made through the SMSF trustee for the year. If you've purchased property through borrowing, double-check that the Holding Trust deed has been properly stamped by your state's Office of State Revenue.
Managing Capital Gains Tax Within Your SMSF
Take time to assess the capital gains on your investments this year and throughout the period you've held them. If you've got investments sitting at a loss, selling them could offset other gains, balancing out your tax obligations. For those in the pension phase, it may be wise to realise gains periodically to prevent a pile-up of unrealised gains that could be affected by legislative changes in the future.
Are you affected by the proposed Division 296 tax?
The Division 296 tax bill has officially passed the Senate unamended and awaits the rubber-stamp of the Governor-General. From 1 July 2026, this will directly affect you if you have a member balance over $3M. We recommend that you seek advice from your advisor to understand the tax implications and options available to you.
Find Clarity with a Trusted SMSF Advisor
SMSFs can be tricky. Need an SMSF wiz by your side? BlueRock are trusted financial and SMSF advisors managing the retirement savings and strategies for thousands of Australians.
Remember, this checklist isn’t a one-size-fits-all. Your SMSF is as unique as you, and we're all about tailoring our advice to match individual client needs. So give us a call and let's make sure your SMSF is all set to shine in this financial year and beyond!
Disclaimer: The information in this article is intended as general information only and should not be considered as advice on any matter and should not be relied upon as such. This information has been prepared without taking into account any individual objectives, financial situation or needs. You should therefore consider the appropriateness of the information before acting or seek advice before making any financial decisions.
