With 30 June nearly upon us, it is imperative all trustees of self managed superannuation funds (SMSF) ensure they have complied with all relevant superannuation laws. To this end, we have provided you with a checklist to assist with superannuation compliance issues:

  • Contributions must be received by 30 June 2014 to be counted towards the contribution limits for 2014 year. If paying by EFT, trustees need to consider the bank’s processing time to ensure contributions are received by 30 June.
  • All investments held by a fund are required to be in the name of the trustees. Trustees should review investments prior to 30 June to ensure all investments are in the name of trustees.
  • The investment strategy should be reviewed prior to 30 June 2014 to ensure the current investments held are consistent with the strategy. If not, a new investment strategy should be implemented. All investment strategies must address whether adequate insurance cover is in place for members of the fund.
  • Trustees should ensure all income of the fund is banked into the fund’s bank account prior to 30 June 2014.
  • Trustees should ensure minimum pension payments for the year are paid by 30 June 2014. If the minimum pension payments are not met, the fund will be subject to tax.
  • Any loans to members and borrowings not permitted under the SIS law (which includes bank overdrafts) should be repaid by 30 June 2014. Loans to related parties that exceed 5% of net assets of the fund should also be repaid.
  • If the fund has investments in related trusts then previous years’ profit distributions must be paid to the fund prior to 30 June 2014.
  • Valuations are required every three years for real property, artwork and collectibles.
  • Trustees are required to have insurance in place for artwork and collectibles. The policy must be held by the fund.
  • For artwork and collectibles purchased before 1 July 2011 and being leased to related parties, the trustees should ensure the lease payments are received prior to 30 June 2014.
  • Artwork or collectibles purchased on or after 1 July 2011 are not permitted to be leased to related parties.

Next Steps

Should you have any questions about the compliance obligations of your SMSF please contact your adviser at Pilot on 3023 1300.