Audit Checklist for SMSF Compliance 2024:
It’s happening again, apparently, yet another 30 June…
And I’m sure we’re all getting ready to get “back in the ring to take another swing.”
But before we let our hair down at that end of financial year [insert your current HR department inclusive word of choice], let’s look at practical, real-world discussions to have with your clients.
That’s right, I’m not going to talk about reviewing your clients’ investment strategy, cause let’s face it… and reading and updating the trust deed? I mean who has time for that?!
So let’s just get down to the coal face, grab that pick and swing away:
Minimum Pension Payments
- Yes, double up this year’s minimum.
- We are back to the pre-covid rates.
|
Age (as at 1 July or commencement date) |
2024 FY onwards |
|
Under 65 |
4% |
|
65-74 |
5% |
|
75-79 |
6% |
|
80-84 |
7% |
|
85-89 |
9% |
|
90-94 |
11% |
|
95 + |
14% |
- Check out our last newsletter on the minimum pension drawdown issue.
- Funds with high asset value low yield, cashflow issues to pay pension.
Contributions
Remember they need to make it to the Fund prior to 30 June. Act well before.
Concessional
- Can your client contribute more than the yearly $27.5K cap?
- Carry forward contributions? Is their TSB under $500K?
- Reserving strategies with SMSFs
- Does the work test need to be met if 67 – 75?
- Consider Div 293 threshold.
Non – Concessional
- Can they contribute? What is their TSB?
- How much?
- The base yearly amount or bring forward arrangement?
|
TSB at end of prior year |
NCC Cap for first year |
Bring forward period |
|
< $1.68M |
$330,000 |
3 years |
|
$1.68M - $1.79M |
$220,000 |
2 years |
|
$1.79M - $1.9M |
$110,000 |
None, 1 year only |
|
$1.9M or more |
nil |
none |
Asset Valuations
I understand it’s a bit like asking your partner for a weekend pass, but time to tear that band aid off and ask your client to get an updated valuation if it’s been a while.
“What’s ‘a while’ and what kind of valuation?”
Good questions.
The ATO does have an okay guideline document, and I am in the middle of developing a fancy valuation tool (still need to work out how to practically use time dilation. Think it requires a black hole).
But, just call me in the meantime…
Related Party Leases
No-one likes paying rent, but if you could… and it’s a tax deduction!
Ok, time to ask your client to make sure any related party leases are paid up to date.
If they have time [refer back to black hole and time dilation] they could check if all required outgoings are also reimbursed to the Fund.
I could go on, and the above is just to get the neurons firing.
So just give me a call on 1300 874 787 to natter in more detail on the above, or any SMSF issues.
Joel