There are lots of articles in the media lately over what trustees of SMSFs need to do before 30 June in order to maintain a complying super fund and ensure the tax planning is maximised.

From an auditor’s perspective, I decided to enlighten you on what not to do around 30 June.

Here are some of the key transactions you must not undertake.

  • Do not transfer monies/contributions via EFT unless you are certain it will present on your SMSF bank statement on or before 30 June.
  • The same rationale applies for pension payments. Do not assume that the transaction will appear on the bank statement on that day. If required, go to the bank and withdraw cash or a bank cheque.

If the payments come out of the bank statement after 30 June, they will not be treated as super income stream benefits for that year and the shortfall could result in the fund losing the Exempt Current Pension Income (ECPI) deduction.

  • Do not back date any off-market transfer forms in case you left it too late. Ensure the broker processes the off-market transaction on the same day or as soon as practicable.
  • Do not leave unpaid present entitlements (UPEs) from related unit trust outstanding. Outstanding amounts may be construed as loans by the ATO. Do not backdate year end trustee declarations. Sign them prior to 30 June.
  • Finally, if your fund has been contravened in the prior year, e.g. for loans to members or relatives, do not ignore the breach. Ensure the breach has been remedied before 30 June. Remember the administrative penalties commence from 1 July 2014 and trustees will be personally liable for these new penalties. The trustees cannot be reimbursed for the penalties by the fund.