2017 June Client Newsletter

Issue 39 | 15 June 2017

Welcome to ESUPERFUND’s June Newsletter.

We would like to take this opportunity to thank you for your support during the 2017 Financial Year.

In this issue, we highlight the importance of the timing of your EOFY contributions. We continue to look at the recent updates released by the Australian Taxation Office (ATO) in relation to the 2016-17 Federal Budget Superannuation Reforms. In addition, we provide guidance on the valuation of assets at the financial year end. Lastly, we introduce the newly released "Pension Summary" page on the Client Portal, as well as remind you of the email notifications sent to recipients of existing pensions.

Mark Needham

Client Services Manager


Do Not Miss the Chance to Get Free Money from the Government!

If you earn less than $36,021 in the 2017 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 2017, 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 $36,021 and $51,021, 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 SMSF’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. If you would like the contributions to be attributed to the 2017 Financial Year, please make sure that your SMSF receives all the contributions by 30 June 2017.

Updates from the ATO - 2016-2017 Federal Budget Superannuation Reforms

The ATO is currently developing the best approach to implement the Superannuation Reforms and detailed guidelines will be released gradually as the ATO progresses the administration of the changes within its current superannuation system. During the last month, the following official resources have been published by the ATO:


Capped Defined Benefit Income Streams Webinar

This webinar outlined the details of a capped defined benefit income stream and discussed how they are valued for transfer balance purposes.

We advise that ESUPERFUND does not establish capped defined benefit income streams for clients. Please contact your scheme provider directly to verify your personal circumstances if you have a defined benefit pension.

The webinar recording can be accessed on the ATO's website.


Fund Reporting Webinar

This webinar provided an overview on the reporting requirements for the transfer balance cap (TBC) and total superannuation balance (TSB). It also discussed the changes to existing reporting obligations.

The webinar recording can be accessed on the ATO's website.

ESUPERFUND Will Guide You through the Superannuation Reforms

ESUPERFUND has published informative articles on our website as the ATO releases further guidelines. Please visit our website to ensure you understand all the changes post 1 July 2017 and take appropriate actions in the last month of the 2016-2017 Financial Year:

Valuation of Assets on 30 June 2017

Assets valuation is a key component in preparing Self-Managed Super Fund (SMSF) Financial Report and the importance of it has been highlighted with the $1.6 million transfer balance that will go into effect on 1 July 2017.

ATO General Valuation Guidelines

Please Click Here to check valuation guidelines.

Event Requirements
Preparing the SMSF financial accounts and statements An asset must be valued at its market value. The valuation should be based on objective and supportable data.
Determining the value of assets that support a super pension
This includes for calculating amounts that count towards the transfer balance cap
The market value of the account balance needs to be determined on the commencement day of the pension or, for ongoing pensions, on 1 July of the financial year in which the pension is paid. The valuation should be based on objective and supportable data.
Determining the market value of assets supporting members' retirement phase and accumulation accounts for the purposes of calculating the members' total superannuation balances The value of these accounts needs to be determined on 30 June each financial year, as the total superannuation balance is calculated at this time for a number of purposes. The valuation should be based on objective and supportable data.
Determining the market value of assets that are eligible for transitional CGT relief in the 2016-2017 income year The assets' market values need to be determined on the date that their cost bases are reset. The valuation should be based on objective and supportable data.

Please visit the ATO’s website for a full summary of valuation requirements.

Specific Requirements for Asset Classes


Listed Securities

For the end of financial year reporting, the closing price on each listed security's approved stock exchange or licensed market at 30 June should be used as the market value of the security.


Real Properties

An external valuation of real property is not required each year. A recent valuation however would be prudent if you expect that the valuation is now materially inaccurate or an event occurred that may have affected the value of the property since it was last valued.

When valuing real property assets for SMSF financial reports, the valuation may be undertaken by anyone (e.g. the trustees of the fund, online property valuation services, real estate agents) if it is based on objective and supportable data.


Widely Held Unit Trusts and Managed Funds

The valuation of units in widely held trusts and managed funds should be based on objective data, for example the published exit price from the fund or trust manager. This price is usually available on the annual account statement issued by the fund or trust manager.


Unlisted Securities and Unit Trusts

When valuing an unlisted security, for example a share in a private company, or a unit in an unlisted trust, you may consider a number of factors, including both the

It may be wise to use an external valuer if the nature of the asset indicates that the valuation is likely to be complex.

For more information on the valuation guidelines, please visit the ATO’s website.

What’s New

View Your 2017 Min / Max Pension Requirements on the "Pension Summary" Page On Your Client Portal

We are excited to announce that a new "Pension Summary" page has recently been released on the Client Portal. This new page summarises your SMSF's pension details for Pension Income Streams that have been successfully established by ESUPERFUND in the SMSF on a real-time basis, including the annual minimum and maximum pension withdrawal limits.

Please check your 2017 Min / Max Withdrawal Limits on the Pension Summary page on your Client Portal and then arrange the payment of each pension by transferring at least the Minimum Amount (and not exceeding the Maximum Amount in the case of a TRAP) from your SMSF to the member’s desired personal account prior to 30 June 2017.

For more information, please refer to the email sent to all SMSFs with Pensions (TRAPs / SABPs) on 15 June 2017.

Do you know?

Notification to Recipients of Existing Pensions (TRAPs / SABPs)

If you are currently accessing a TRAP / SABP from the SMSF, you should have received the "Post 1 July 2017 TRAP Reform" / "How to Comply with the $1.6M Transfer Balance Cap" email from our office.



I have been with ESUPERFUND since 2013 and have found them excellent and at the right price for managing my self-managed super fund. During this time, I have found them excellent to deal with. If I have any issues, they are just a phone call away or I can email them my problem. I would recommend ESUPERFUND if you want to be involved in the handling of your investments whilst letting them undertaking the paperwork.

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