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July 2024 SMSF newsletter

Preservation age and transition-to-retirement pensions align
The stars have aligned for the preservation age and tax-free super payments, reigniting interest in TTR pensions. Read more.
Preservation age and transition-to-retirement pensions align
The stars have aligned for the preservation age and tax-free super payments, reigniting interest in TTR pensions. Read more.
Can I live in my SMSF property?
It’s a common question which is generally answered with a firm no, but there are exceptions to the rule. Read more.
Can I live in my SMSF property?
It’s a common question which is generally answered with a firm no, but there are exceptions to the rule. Read more.
What does SuperStream mean for my SMSF?
SuperStream is a data and payment standard for super funds that makes it much easier to collect contributions and pay rollovers – even for SMSFs. Read more.
What does SuperStream mean for my SMSF?
SuperStream is a data and payment standard for super funds that makes it much easier to collect contributions and pay rollovers – even for SMSFs. Read more.
Director Identification Numbers: What is required for SMSFs
If you are planning to set up your own self-managed super fund with a corporate trustee, then you will need to add applying for a Director ID to your administrative to-do list. Read more.
Director Identification Numbers: What is required for SMSFs
If you are planning to set up your own self-managed super fund with a corporate trustee, then you will need to add applying for a Director ID to your administrative to-do list. Read more.
How to wind up an SMSF
When you set up an SMSF, it’s a good idea to have an exit plan and an understanding of the winding up process. Read more.
How to wind up an SMSF
When you set up an SMSF, it’s a good idea to have an exit plan and an understanding of the winding up process. Read more.

Note: The final legislation relating to SMSFs and Non-arm’s length expenditure (NALE) received Royal Assent last week. These rules apply retroactively from 1 July 2018. See our updated NALE guide for more detail. 

In case you missed it: See our coverage of all super rule changes from July 2024.

Transition to Retirement Pensions: The BOOM is coming

Thursday 25 July 2024 at 11:00 am AEST

With upcoming changes to both superannuation and tax laws, there is likely to be a huge uptake in the use of transition to retirement pensions. This webinar will highlight the benefits of using a transition to retirement pension and how they can be used to manage regulatory change.

July 1

Now is the time to calculate the minimum pension payment for members in retirement phase. This is based on the member’s age on 1 July and their (prior) 30 June pension balance.

For some members, the actual minimum pension percentage factor may have increased. For example, a member who turned 65 in the last 12 months would now have an increased minimum pension factor of 5%, up from 4% last financial year.

For all pension members, your minimum pension payment requirements would rarely be the same from year to year due to changes in your pension account balance. You therefore need to consider adjusting any direct debit arrangements where pension payments are made automatically. The main consideration is to ensure that at least the ANNUAL minimum amount is paid out to the member by the end of the financial year – 30 June 2025.

It would also be time to start thinking about your SMSF’s investment strategy for the year ahead. What do your investments look like? Do you need to consider rebalancing if your asset allocations are out of whack? Will the SMSF need to start paying any member(s) a pension this financial year?

Are there any other big events, such as new trustees, that might be on the cards this year? You’ve just closed off one financial year so no need to jump onto these things straight away but do put them on the radar.

Also keep in mind that it is now just 12 months until the new Division 296 tax rules for member balances above $3 million come into force. These rules will result in an additional 15% tax being levied on super fund earnings on member balances above $3 million. Although this is a tax that is levied and payable by the member personally, some SMSF members (as with all superannuants) may need to consider what, if any, changes need to be made to their superannuation savings.

July 5

For SMSFs with a corporate trustee, take note of your fund’s relevant (ASIC) corporate trustee annual review fee date. This date varies so we have slotted it in here, early in the financial year, to remind you to check this date and to make a note of it. There may be a late fee if you don’t pay it on time.

July 28

Where any transfer balance event has occurred between 1 April 2024 and 30 June 2024, you are required to report these events by lodging a transfer balance account report (TBAR) by this date.

By this date, SMSF trustees should also have received all super guarantee contributions for the period 1 April 2024 to 30 June 2024 for eligible fund members.

Where your SMSF is registered for GST, your BAS is now due.

Important: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629.