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2022 End of Financial Year (EOFY) reminders for your SMSF

2022 End of Financial Year (EOFY) reminders for your SMSF

With just a few more weeks until we see out yet another financial year, here are some reminders to ensure your SMSF is ready for 30 June 2022.

Minimum pension requirements

The Government has continued the 50% reduction of the annual minimum drawdown requirements on common pensions, such as account-based pensions to help manage the economic impact of COVID-19.

So, in the 2021-22 and 2022-23 financial years, the minimum drawdowns are:

AgePercentage of account balance at 1 July
Under 652%
65 – 742.5%
75 – 793%
80 – 843.5%
85 – 894.5%
90 – 945.5%
95 or more7%

There is no halving of the maximum pension percentage applicable to Transition to Retirement Income Streams.

A reminder that pension payments must be taken in cash (ie. cannot be made in-specie) and needs to have been withdrawn by 30 June. If the minimum pension requirement is not met, SMSFs will be subject to 15% tax on pension investments instead of being tax free.

Where you have been receiving regular pension payments, it’s likely you may have received more than the required minimum payment for this year. Unless you meet contribution eligibility rules, these funds cannot be returned.

Contribution caps for 2021-22 and 2022-23

Before 30 June 2022 , you should review your contribution strategies to ensure you have contributed what you intended to and ensure you are below the contribution caps.

All agesYear ending 30 June 2022 and 2023
Concessional Cap$27,500
Non-Concessional Cap$110,000

Carry forward concessional contribution caps

Individuals can make additional concessional contributions by utilising their unused concessional contributions caps on a 5-year rolling basis, as long as their Total Super Balance was less than $500,000 on the 30 June just before the start of that financial year.

Non concessional contributions – bring forward arrangements

Currently, only members under the age  of 67 on 1 July 2021 may ‘bring forward’ two years of non-concessional contributions subject to their Total Super Balance on 30 June 2021.

From 1 July 2022, the cut-off age to access these ‘bring forward’ provisions increases to 75.

Total Super Balance as at 30 June 2021Non-concessional contribution & bring forward available starting 1 July 2021 and 2022
Less than $1.48 million3 years ($330,000)
Greater than or equal to $1.48 and less than $1.59 million2 years ($220,000)
Greater than or equal to $1.59 and less than $1.7 million1 year ($110,000)
Greater than or equal to $1.7 millionNil

Checking your Transfer Balance Account and Carry Forward Concessional Contributions on myGov

Since 1 July 2017, individuals have been required to report the commencement of Account Based Pensions and death benefit pensions to the ATO as part of their Transfer Balance Account Reporting (“TBAR”). It is important to ensure the ATO has captured all your pension history so that it correctly calculates your Personal Transfer Balance Cap which could be different to the General Transfer Balance cap of $1.7 million.

To do this:

Step 1:
Log into your myGov account at https://my.gov.au/ and select ATO from the list of services linked on your myGov account (you may need to link this to your account if you cannot see it);

Step 2:
Then along the top menu, select Super tab, then Information, then Transfer Balance Cap.

From there you will see your Personal Transfer Balance Cap and there is a hyperlink for “Transfer balance account – view transactions” which will provide a detailed listing of all transactions which have been reported.

Similarly, to check if you have Carry Forward Concessional Contributions available, then:

Step 1:
Log into your myGov account at https://my.gov.au/ and select ATO from the list of services linked on your myGov account (you may need to link this to your account if you cannot see it);

Step 2:
Then along the top menu, select Super tab, then Information, then Carry Forward Concessional Contributions

Step 3:
Use the drop-down list to select the financial year that you are checking and if there are unused concessional contributions available to carry forward, this will be shown #

# Note: the information shown is only what has been reported to the ATO so if there has been a delay in any of your super funds reporting their information or if there has been an error, this information will not be accurate. Therefore, it is always prudent to check the information directly with your super funds and your records.

If you have any queries in relation to the above don’t hesitate to contact your client manager.

Author: Anna Wong

*Correct as of 21 June 2022

*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.

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