June 2024 – Accounting and SMSF Roundup

June 2024 Round Up - End of Financial Year Superannuation and Tax Check List.

With the end of the financial year approaching, here’s our checklist of the Top 10 things you should be focusing on this month for maximum returns. From super contributions and government co-contributions to reviewing asset depreciation and prepaying expenses, this quick checklist will make sure you maximise both your tax benefits and retirement savings.

  • Maximise your super contributions by 25 June 2024 at the latest
    Make sure you have maximised your annual concessional (tax deductible) and non-concessional (undeducted or after-tax) super contributions. Contact us if you’d like more information on concessionals caps and inclusions.
  • Carry-forward your concessional contributions cap
    If you’re on a high taxable income, carrying-forward your concessional contributions can offset your income provided you are eligible. If you have less than $500,000 in superannuation as at 1 July 2023 and have never made any concessional contributions since 2018, you may be eligible to make a concessional contribution of up $157,500 in the 2023-24 year.
  • Spousal contributions and tax offsets
    You can split up to 85% of your concessional contributions (including any unused carry forward concessional contributions) from a prior year with your spouse as long as they’re under their preservation age, or under 65. This may be a appropriate when your spouse has a low super balance (less than $500,000 before the start of the financial year) or is closer to retirement. You may also be entitled to an income tax offset of up to $540 for superannuation contributions for the benefit of a lower income (under $40,000) or non-working spouse who is under age 75.
  • Access the government co-contribution of up to $500
    If you are employed, under 71, and have a total income of less than $58,445, the government will co-contribute 50 cents for every $1 of any non-concessional (undeducted) super contributions that you make, up to a maximum of $500.
  • Draw your minimum pension before year end
    If you are drawing a pension from your super, make sure your fund has paid you the minimum amount by June 30. The minimum pension for the year is based on a percentage of your balance depending on your age. Contact us to find out more about the percentages for each age bracket.
  • Prepare your SMSF requirements
    Make sure you have obtained updated and independent valuations for all assets including unlisted assets and real property (residential and commercial), review your investment strategy and ensure related party transactions are made on arm’s length terms. If you haven’t already, also make sure you appoint an auditor no later than 45 days before the lodgement of your annual return.
  • Hold off on setting up an SMSF if you don't already have one
    If you are thinking of setting up an SMSF, now may not be the time. To avoid the fixed annual SMSF compliance costs, it may beneficial to defer until the new financial year.
  • Review your asset depreciation schedule
    You may be eligible to claim immediate deductions for assets under the instant asset write-off scheme to reduce your taxable income.
  • Prepay expenses and make any new asset purchases
    If possible, prepay expenses such as rent, insurance, and other business costs to claim them as deductions in the current financial year.
  • Review your business structure
    The EOFY is the perfect time to review your business structure for maximum benefits. Does your current structure meet your tax planning goals, does it provide adequate asset protection, and will it support scalability if you’re in a period of growth?