2023 End of Financial Year Reminders for Your SMSF

With just a few more weeks until we farewell another financial year, here are some reminders to ensure your SMSF is ready for 30 June 2023.

Minimum pension requirements

This is the last financial year the 50% reduction of the annual minimum drawdown requirements on Account Based pensions will be made available.

AgeMinimum Percentage of account balance at 1 July 2022Minimum Percentage of account balance at 1 July 2023
Under 652%4%
65 – 742.5%5%
75 – 793%6%
80 – 843.5%7%
85 – 894.5%9%
90 – 945.5%11%
95 or more7%14%

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 cannot be made in-specie) and needs to have been withdrawn by 30 June.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 2022-23

Before 30 June 2023 , 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 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 2022.

Non concessional contributions – bring forward arrangements

Members under the age of 75 on 1 July 2022 may ‘bring forward’ two years of non-concessional contributions subject to their Total Super Balance on 30 June 2022.

Total Super Balance as at 30 June 2022Non-concessional contribution & bring forward available starting 1 July 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

Work test for personal concessional contributions

From 1 July 2022, the work test (ie. gainfully employed for least 40 hours over 30 consecutive days) will only apply if you wish to claim a tax deduction for the voluntary contributions you make to your SMSF, and this test can be met at any time in the financial year.

If you have any queries in relation to your superannuation responsibilities or opportunities before 30 June, the Kreston Stanley Williamson team is here to assist you. Please don’t hesitate to reach out and contact us for guidance and discussion.

Author: Anna Wong – Senior SMSF Manager at Premier SMSF Solutions

*Correct as of 26 May 2023

*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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