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As the end of the financial year approaches, it's crucial for individuals with a Self Managed Superannuation Fund (SMSF) to be prepared and proactive. This is true not only for the end of this financial year but also, planning for moving into the next.
With proper planning and guidance from trusted experts like the Attune Advisory team, you can optimise your SMSF's performance and ensure compliance with regulatory requirements. In this article, we'll explore key considerations and actions to take before EOFY to make the most of your SMSF.
It's important to note, even if you’ve left the following until now, it’s not too late, but a call to the Attune team (1300 866113) immediately is crucial if you find yourself staring at June 30 approaching with things left to do.
1. Addressing Prior Year Management Points:
To start off, it's essential to address any management points raised by your SMSF auditor from previous years. These points could include issues related to documentation, compliance, or internal controls. By resolving these matters, you can ensure a clean slate for your SMSF and avoid potential penalties or complications down the line.
2. Validating Unlisted Investments:
If your SMSF holds unlisted investments, such as properties, it's crucial to obtain sufficient and appropriate evidence to support the annual trustee assessment of their market value. The AustralianTaxation Office (ATO) emphasises the importance of multiple forms of evidence, rather than relying solely on one source like a real estate kerbside valuation.Consider seeking additional evidence such as comparable sales to strengthen the valuation process and ensure compliance.
3. Reviewing the SMSF's Investment Strategy:
Regularly reviewing and aligning your SMSF's investment strategy is vital to ensure it remains in line with your financial objectives. It is recommended to document this review in writing (minuted)annually, serving as evidence of the trustees' diligent oversight. AttuneAdvisory can assist you in conducting a comprehensive review of your SMSF's investment strategy to optimise its performance and mitigate potential risks.
4. Settling Property Trust Profit Distributions:
For SMSFs that have pending property trust profit distributions from the 2022 financial year, it's essential to ensure these distributions are paid before the end of the current financial year. Failing to settle these distributions can result in compliance issues and potential taxation implications. Engage with Attune Advisory to navigate this process smoothly and maintain compliance with regulatory requirements.
5. Complying with Event Based Reporting:
Event Based Reporting requirements by the ATO come into play in various instances, including commencing or stopping a pension and withdrawing specific lump sums. It's crucial to ensure your SMSF has been diligently adhering to these reporting obligations. By staying on top of event-based reporting, you can avoid penalties and maintain a transparent and compliant SMSF.
6. Updating Electronic Service Address (ESA):
Individuals receiving employer contributions into their SMSF need to be aware of changes regarding the Electronic Service Address(ESA). With the discontinuation of the Australia Post ESA, a new provider will need to be selected from 1 July 2023. Attune Advisory can provide the necessary assistance in updating your ESA to ensure uninterrupted communication and seamless employer contributions.
As the financial year comes to a close, taking proactive steps to maximise the potential of your Self Managed SuperannuationFund is vital – especially at this late stage. Attune Advisory is here to guide you through the process, ensuring compliance with regulatory requirements and optimising your SMSF's performance now and into the future.
If you’d like to discuss any part of your SMSF strategy, don’t hesitate to call us today on 1300 866 113 so we can ensure you’re all set for next financial year!
