Welcome to ESUPERFUND’s June Newsletter.
In this issue, we remind those of you receiving a pension from your SMSF of the minimum amount you are required to withdraw and we detail the eligibility requirements for receiving “free money” via the the Government Co-Contribution. We are also pleased to announce the release of the Change of Trustee Application in the Client Portal and finally we highlight the importance of the timing of your end of year contributions.
Client Services Manager
Pension Withdrawals Reminder
If you have commenced a Pension in your SMSF, you will be required to withdraw at least the Minimum Pension Amount (and not exceed the Maximum Pension Amount in the case of a TRAP) from your SMSF prior to 30 June 2015 to comply with the SMSF Pension Rules.
The minimum amount is calculated as a percentage of your Super Balance based on your age (see the below table) and the maximum amount for TRAP is 10% of your Super Balance. If a member does not withdraw the Minimum Pension Payment for a particular financial year, then the tax free status of the SMSF income and realised capital gains may be at risk as the member may not be considered to be in Pension Phase. Learn more about Pensions.
||Minimum Pension Factor
|55 - 64
|65 - 74
|75 - 79
|80 - 84
|85 - 89
|90 - 94
A reminder confirming the Minimum and Maximum Pension Withdrawal amounts has been emailed and mailed to you recently. If you have yet to receive the reminder, please do not hesitate to contact our office.
Updates on SuperStream
We have recently notified you about the coming deadline to meet SuperStream requirements. It aims to make processing super contributions easier and faster. Learn more about SuperStream.
A Quick Recap of SuperStream
Our Electronic Service Address (ESA) is ESUPERFUND.
Notify your employer at your earliest convenience.
Application for Change of Trustee and or Member is available in the Client Portal
We are very pleased to announce that the Change of Trustee and or Member Application is now available through your Client Portal under the Applications tab.
The new application is designed to make the Change of Trustee and or Member to be as smooth as possible. However, you should be aware that the change of a trustee and or member is more than just submitting an application. It may involve but is not limited to the following steps:
Establishing a new Bank Account for your SMSF
Establishing a new Share Trading Account for your SMSF
Lodging a change of details form with the Australian Taxation Office
Shares held under the old share trading account will need to be transferred via Off Market Transfer Forms (Fees applicable)
If the Fund owns a property or any other assets, the title will need to be changed (Tax and stamp duty applicable)
Do You Know?
Do Not Miss the Chance to Get Free Money from the Government!
If you earn less than $34,488 in the 2015 Financial Year, the government will pay $0.50 for every dollar you personally contribute to your SMSF from your after-tax income before 30 June 2015, up to a maximum of $500. This means you can receive up to $500 from the government by simply making a personal non-concessional contribution to your SMSF.
For earnings between $34,488 and $49,488, the maximum co-contribution is reduced by 3.33 cents for every dollar earned over the minimum threshold until it cuts out.
Learn more about Government Co-contribution today.
Timing of Contributions Is Important
When working out your super contributions for the financial year, remember only the contributions received by your Fund’s Bank Account by 30 June will be reflected on your annual member statement. For example, if your employer regularly pays contributions for you in the month after each quarter, then the June quarter contributions will actually be made in July – as a result, the contributions will count towards your concessional (before-tax) contributions cap in the next financial year.
Please keep track of the contributions you, your employer, or others make on your behalf to your SMSF and if you want the contributions to be attributed to the 2015 financial year make sure your Fund receives all your contributions by 30 June 2015.
I would like to take this opportunity to thank you and your team. You’ve made light of our work as trustees. I have had nothing but positive experiences in my dealings with your team so far and have recommended your service to some of my friends. Keep up the great work and good service.
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