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.
Client Services Manager
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.
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.
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.
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:
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.
Please Click Here to check valuation guidelines.
Please visit the ATO’s website for a full summary of valuation requirements.
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.
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.
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.
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.
ESUPERFUND Pty Ltd as Trustee for ESUPERFUND Trust ABN 37 842 535 715
General Advice Warning
The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives,
financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products:
This applies equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND.
Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product.
We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website.
While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.
When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an
ATO Supervisory Levy
Company Trustee Setup Fee (where applicable)