As the fast-approaching 30 June deadline looms, it becomes crucial to prioritise managing your superannuation needs, precisely your SMSF investment strategy, before the end of the financial year.
Contributions
For Superannuation guarantee purposes, employer super contributions have to be made 28 days after the end of each quarter.
Notwithstanding the above, for superannuation contributions to be deductible and recorded in the 2015 year, they must be paid before 30 June. To stop any issues arising, it is best to ensure your superannuation fund receives your superannuation contributions well before 30 June.
Superannuation contributions are subject to caps. The contribution caps for 2015 are as follows:
| Contribution type | Description | Limit (cap) | Tax rate if you go over the cap |
| Concessional (Under 50 years in 2014-15) | Contributions from before-tax income or for which a tax deduction has been claimed. | $30,000 | Amounts over $30,000 will be added to your assessable income and taxed at your marginal tax. |
| Concessional (Turning 50 years old or older in 2014–15) | Contributions from before-tax income or for which a tax deduction has been claimed. | $35,000 | Amounts over $35,000 will be added to your assessable income and taxed at your marginal tax. |
| Non-concessional | Contributions you make into your super fund after tax has been paid on them. | $180,000 | 49% for amounts over $180,000. For contributions made from 1 July 2014, over $180,000 may be withdrawn, along with any associated earnings. The earnings would then be taxed at your marginal tax rate. |
| Non-concessional | There is a bring forward provision for people under age 65, who can go over the non-concessional cap by up to two years worth of contributions without penalty. Please seek advice if you are considering this option. |
Pensions
If you have reached your preservation age, you should consider whether it makes sense to commence a pension in your super fund. Even if you are still working, transitioning to a retirement pension may be possible and worthwhile.
| Date of birth | Preservation age (years) |
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
If you, as a super fund member, are in pension mode, you must have made pension payments to meet the minimum pension draw amount before 30 June. If you do not meet your pension payment obligation, the concessional status of your fund could be put at risk.
If you commenced a pension during the year, you may also need to meet a minimum pension requirement.
| Age of Member | Minimum pension as a % of the account balance |
| Under 65 | 4 |
| 65 – 74 | 5 |
| 75 – 79 | 6 |
| 80 – 84 | 7 |
| 85 – 89 | 9 |
| 90 – 94 | 11 |
| 95+ | 14 |
Investments & Insurance
For an SMSF, if you have not already, now is an excellent time to review your investment strategy to ensure it aligns with the trustee’s wishes and investments of the fund.
For an SMSF, we also suggest you document that you have considered whether the fund should take up any insurance.
Trustees should ensure that any insurance held by the fund is appropriate. In particular, if your fund holds total permanent disability insurance, care should be taken to ensure the policy has an “any occupation” clause.
Please get in touch with us if you have any questions about any superannuation matters.
*Correct as of June 2015
Disclaimer – Kreston Stanley Williamson has produced this article to serve 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 in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
