Comprehensive SMSF: Checklist for 2024 EOFY

As the end of the financial year approaches, it’s crucial for SMSF trustees to ensure compliance with their SMSF and ensure you use all the opportunities available for your SMSF. To prepare you here’s a detailed checklist to guide you through the essential tasks:

Key Actions to Complete by 28 June

1. Minimum Pension Payments

For trustees receiving a pension from their SMSF, ensure you meet the minimum withdrawal requirements by 30 June to avoid the pension being ceased. Failure to comply will revert your SMSF to paying 15% tax. Minimum payments vary based on age and must be paid in cash.

For Action: Please contact Easy Super team if you are unsure about your minimum pension for 2024 financial year.

 

2. Contribution Caps

Remember there are limits on how much money you can contribute to your SMSF.  Employer contributions count towards the concessional cap. The annual limits are as follows:

• Concessional (pre-tax): $27,500
• Non-Concessional (after-tax): $110,000

There are few contribution strategies available for the trustees. Consider strategies such as contribution splitting with your spouse and government co-contributions to maximize benefits while staying within the caps. Also, if you have less than $500K in all your super accounts and haven’t “used” your concessional caps in the last five years, there could be an option to top up your super. For all SMSF news, sign up for our videos here.

Watch our video here to understand more about downsizer contributions.

For Action: Please contact Natalia Clack if you need advice regarding optimising your contributions and minimising the tax in SMSF.

 

3. Investment Strategy

Review and update your SMSF’s investment strategy to ensure it aligns with your retirement goals. Document all investment decisions and ensure they are minuted properly. Super laws recommend reviewing the SMSF investment strategy at least annually. Any changes in the SMSF such as new member joining the fund, pension commencement, changes in investment choices, or insurance will require an updated strategy.

For Action: Please contact Easy Super team if your investment strategy is outdated, doesn’t reflect your SMSF current situation or if you don’t have one. We can assist you with this task, so your SMSF is compliant and ready for the next year’s audit.

 

4. Asset Valuation

Ensure assets are valued at market value as at 30 June 2024, as required by the ATO. Annual market valuation is essential for compliance, reporting and accuracy, and to avoid additional tax liabilities and auditor’s qualification.

All valuation must be supported by objective data and proper documentation.

To learn more about Market Valuation, watch Natalia’s video here.

For Action: Please make sure you have or will have a valuation of your assets at 30 June 2024. Contact Easy Super team if you need any assistance with the property valuation at 30 June 2024.

 

5. Regulatory Updates

Stay informed about any legislation changes affecting SMSFs, such as the additional tax on super balances over $3 million from 1 July 2025. This will help you in planning and adjusting your SMSF strategy accordingly.

For Action: For all SMSF news, sign up for our videos here. We always bring you the latest developments in SMSF legislation, SMSF trustees tips and news to help you to manage your SMSF.

 

6. Insurance

Review and update insurance policies and ensure adequate coverage. If you need a comprehensive insurance advice, consider consulting a risk specialist to review your situation and provide you a tailored solution for your need.

 

7. Estate Planning

Make sure that there is an estate planning done for your SMSF. Remember, that you will not cover your SMSF benefits automatically. For all SMSF news, sign up for our videos here.

For Action: make sure you understand how SMSF estate planning works and made the necessary arrangement for your benefits to go to who you want it to go to.

 

8. Crypto transactions

The auditors are getting stricter with the crypto in SMSF. If you hold or trade crypto in your super fund, make sure you:

• Have your wallet/blockchain public address written down
• Login to your wallet/blockchain/exchange/trading platform and save the history of the transactions from the inception to date.
• Login at 30 June 2024 into your wallet/blockchain/exchange/trading platform and make a photo of the crypto holdings in SMSF. The photo must show the date (30 June 2024). Use the computer screen and capture the date at the right bottom corner.
• Login at 30 June 2024 into your wallet/blockchain/exchange/trading platform and make a photo of the staking rewards and staking balances in SMSF.

Watch Natalia’s video here as she discusses the 6 Mistakes to Avoid When Investing in Crypto in SMSF.

 

Additional Compliance Tasks:

• Ensure Timely Transactions: Since 30 June falls on a weekend, all contributions and payments should be processed by 28 June to ensure they are counted for the current financial year.
• Record Keeping: Maintain updated records and documentation for all income, expenses, investments, and decisions. This includes bank statements, investment statements, and minutes of trustee meetings.
• Audit Preparation: Ensure all records are in order and ready for the annual audit. Appoint an approved SMSF auditor at least 45 days before lodging your SMSF annual return.
• Review Capital Gains: Manage capital gains and losses to optimize tax outcomes. Consider disposing of assets with unrealized losses if the fund has realized gains during the year.

By following this comprehensive checklist, you can make sure that your SMSF is ready for 2024 tax period. For personalized technical or strategic advice, contact Easy Super team at enquiry@smsfconsulting.com.au.