It can be a daunting task to check and double check to ensure that you have done everything what your adviser has told you to do before the financial year ends. Below is a list, just in case you have missed anything... 1. Do not miss this year's free money - Co-contribution  If you are a low or middle-income earner and make after tax contributions called non-concessional contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount ($500 in 2013-14). The amount of government co-contribution you can receive depends on how much you contribute and what your income is. 2. Double your deduction for 2013-14 year - Contribution Reserving Objective: Where a member wishes to claim larger deduction for personal contribution without breaching the cap for Concessional contribution. How it works: Where a member has already reached his cap for CC, they can make another contribution up to the cap amount for 2014-15 ($30,000 or if you are over 50, $35,000) in the month of June which will be credited to a 'Contribution Reserve' account in the liability side of the balance sheet, instead of allocating to the member's account. How it works - June contribution would not count towards the member's contribution cap in the year of receipt.
- The contribution would be included in the fund's assess able income in the year it is received and the member (or members employer) can claim a deduction for all contributions, including June contribution.
- June contribution would be allocated to member from reserve account in July (within 28 days after the end of the month of receipt) and would count towards contribution cap of next year. Next year, similar June contributions can be made for 2015-16 year.
Confirmed by ATO in ID 2012/16 and TD 2013/22  - Trust deed should allow contribution reserving.
- Should be carefully documented for receipt and allocation of contribution
- Hassle of filing an objection need to be kept in mind before implementing this strategy
3. Fix salary sacrifice arrangements If you contribute via a salary sacrifice, note that concessional contribution cap will increase from $25,000 to $30,000 on 1 July 2014. For trustees making salary sacrifice superannuation contributions may have to review their salary sacrifice arrangements in 2014/2015. Those who are 49 or over on 30 June 2014, their concessional contribution cap will increase from $25,000 to $35,000 in 2014/2015. 4. Maximising Non-concessional Contributions Those who intend on making a large non-concessional superannuation contribution, they may contribute $150,000 before 30th June 2014. Non-concessional contribution cap is being increased from 1 July 2014, from $150,000 to $180,000. The total non-concessional contribution which can then be made under the "bring-forward rule" (which is equal to six times the standard non-concessional cap), will then increase from $450,000 to $540,000. Which means that $540,000 can be contributed on 1st July 2014 for those who are under 65 years age. Please note those who are over 65 cannot benefit from the bring forward rule and must be "gainfully employed" for 40 hours in a 30 consecutive day period - which means that they must work 40 hours - before they can contribute - a contribution on 3rd July 2014 will avoid any auditor contraventions. 5. Withdraw the minimum pension amount This is no-brainer. Check with your adviser what percentage of your pension balance of you r account has to be withdrawn, it depends on pension account balance and your age as on 1st July 2013. Please ensure the cash is out of the fund's bank account before 30th June 2014. If minimum balance is not withdrawn, the fund will not be able to claim exempt pension income deduction and the members balance will revert back to accumulation account. Those who were 55 on 1st July 2013 or turned 55 during year financial year and were and are still working, should discuss their options with their advisers, there is still time. 6. Fix all the problems in your SMSF From 1 July 2014, the ATO will have the power to give where it reasonably believes that a trustee or director of a corporate trustee of a SMSF that has contravened a provision of superannuation law one of the following orders a) Rectification of errors; b) Education directions; c) Impose administrative penalties for certain contraventions of the superannuation laws. These new penalty powers will apply to contraventions that occur on or after 1 July 2014. But it is possible that some of these contraventions occurred before 1st July 2014. Clean up your fund as penalties can be as high as $10,200 per member. If there are 4 members, then penalties can be $40,800. However a corporate trustee will be penalized only $10,200, think about changing from individual trustee to a corporate trustee. 7. If there are loss making shares and you have made a capital gain - sell the shares to adjust your overall capital gain We sometimes carry shares to the next year, where they have lost and generally sell to cash a profit. What this does in the fund is makes it pay capital gain tax as the fund has realized capital gain by selling the share. For shares which are losing in value, move to the new year with an unrealized loss.  Trustees should consider selling the loss making shares before the year ends and realize a loss to adjust the overall capital gain. But note that there is a rule about buying the same share back after selling, which means that trustees should consider buying another share in the same investment class and not that same particular share. For example if there is an unrealized loss is in Westpac, sell Westpac and buy another banking share. 8. Split your Super with older spouse What is spouse splitting? - Only Concessional contribution can be split up to 85% of contribution received.
- Contribution made during the year can't be split in the same year, they have to be split in the next year. That means that concessional contributions of 2012-13 year can be split with the spouse in 2013-14 year before 30th June 2014.
- Receiving spouse must be under 65 years.
- Any split amount is counted for the cap of splitting member not the receiving member.
- Splitting declaration form must be filed with trustee.
- S. 290-170 notice should be filed prior to submitting declaration for splitting
Advantages: - If one member has lesser balance, his / her balance can be increased to take advantage of Low rate cap by both spouses.
- Where there is substantial age difference between spouses, contribution can be split to older spouse to help access the super benefits earlier.
 9. Insurance policies for TPD and Trauma From 1 July 2014, new rules come into effect that will prohibit superannuation fund trustees from providing an "insured benefit" in relation to a member unless the insured event is entirely consistent with a superannuation condition of release. This means that trauma policies and own occupation Total and Permanent Disability (TPD) policies will not be permitted. However, it is important to note these new rules will not apply to policies taken out prior to 1 July 2014. There are many advantages and disadvantages in holding these types of polices in an SMSF, discuss them with your adviser before 30th June. To learn more, book for our seminar below. 10. Change your adviser if he has not told you any of the above 9 things you should have done before 30th June 2014. Do not forget to forget the year - it is only money - plastic - not even the good old fashioned paper... | 
