2020…..what a strange year so far. Our country has experienced so much hardship already but through it our community has shown true strength and grit. The financial sector is ticking along but the future is still very much uncertain. It is therefore more important than ever that prior to 30 June 2020 you sit down and answer these questions regarding your SMSF.
We don’t like complicated. So let’s use the below checklist to ensure you have considered and actioned everything you need for your superannuation including the impacts of COVID:
SMSF’s and COVID
- Am I aware that I only need to take half of my minimum pension in 2020 and 2021 due to COVID?
- Am I struggling financially and could I benefit from accessing super under the COVID release rules? Or have you accessed the release already and have some left over?
- Have my SMSF property tenants requested rent relief due to COVID?
- Do I have a related party borrowing arrangement in place and what are the impacts of COVID?
- Do I hold in-house assets which may now exceed the threshold?
Members in pension phase
- Are you in pension phase? Check you have taken your minimum amount before 30 June 2020 (after the 50% reduction).
- Will you be commencing a pension 1 July 2020? If so make sure you prepare and sign the appropriate documents.
- If you are commencing a pension on 1 July 2020 consider if you need to lodge a TBAR report
- Is your balance over $1.6m and have you considered withdrawing the excess before 30 June 2020 as a lump sum? Discuss with your advisor to optimise your tax position and ensure appropriate documents are in place.
- Have you considered making a personal concessional contribution to super before 30 June 2020? Discuss with your advisor to optimise your tax position.
- Do you make contributions from your trust or business? Make sure they are deposited well prior to 30 June 2020 to ensure they clear the bank account.
- Will you benefit from contributing your unused concessional cap from 2019 under the new catch-up (carry forward) contributions rule?
- Will you be making non-concessional contributions to super? Confirm with your advisor that you are eligible to do so first!
- Are you turning 65 or 75 next financial year? Consider the changes to your caps and ask us about the work test
- Have you considered splitting last year’s contributions with your spouse? Ensure you have completed the appropriate forms before 30 June 2020 and submitted to your super fund
- Have you considered putting a salary sacrifice arrangement in place with your employer? Ensure you have completed the necessary paperwork before 30 June 2020 to have in place for 2020.
- Do you know about the reserving strategy?
- Do you own property in your fund? Consider engaging a real estate agent to provide you with an appraisal at 30 June 2020
- Is your estate planning in order? Contact your advisor to check your current documentation
- If you have an SMSF is your fund as automated as possible? Ask us about the benefits of automation
This is a lot to get through so get in touch with us here if there is anything we can assist with.
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.