Top 4 things to put on your end of financial year to-do list

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The end of the financial year always necessitates a flurry of activity from both trustees and the SMSF administration service providers they work with. There can seemingly be a million things to do, and very little time to do it.

The following are four things that you’ll want to make sure are high on your priorities list in this and subsequent years.

1. Paying the minimum pension for the year

Part of running your own super fund is making sure it satisfies superannuation legislation by meeting the minimum pension payment requirement. Trustees and any individuals working with them should ensure that this gets done. While failing to do so is a basic mistake, it can be extremely costly.

Not meeting the requirement both puts into jeopardy the fund’s tax exempt status for the year and is an audit issue. It can also lead the ATO to deem the pension as having ceased for tax purposes – even if they pick up on this four years later, they’ll ask for a refund for all four years, as you technically weren’t entitled to deductions during that time.

2. Think about what to do with contributions

The money in your SMSF will go on to fund your retirement, so you want to make sure you’re getting as much out of it as possible. The end of the financial year is a good time to think about how to optimise your contributions – how much do you need to put in via concessional and non-concessional contributions, for instance? In the process, be sure you stay within the relevant contribution caps to avoid additional tax and administrative burdens.

3. Consider unlisted securities and investments

If you haven’t already done so, now is the time to consider if you have any unlisted securities or property investments. If so, you should arrange a valuation of these assets immediately.

Under the relatively new valuation regulations that were put in place over the last few years, these valuations have to be handed over at audit time. Trustees can get in contact with the team at Aquila Super to find out their options when it comes to carrying these out, to help ensure they avoid any unnecessary costs.

4. Getting the paperwork sorted

It might seem obvious, but without a plan to get your paperwork in order and accounts prepared, the end of the financial year can easily turn into a mad dash. Make sure you give your accountant what they need on time.

Keep in mind that an administration service like Aquila Live can be a great help with SMSF at this time. Contribution limits and the minimum pension requirements are both listed in the portal, helping ensure you don’t suffer any penalties by going over or falling short, respectively.

And because everything is tracked on a live basis, organising the end of year paperwork and accounts is much simpler. With such a service in your back-pocket, you can avoid the nightmare scenario of accountants and advisers looking hastily through bank statements in the middle of June.