Your minimum pension is calculated by multiplying your pension account balance as of 30 June 2024 by the percentage applicable based on your age at 30 June 2024:

It is important to remember some banks need several days to process transactions. To avoid delays, we recommend making your pension withdrawals by 15 June 2025.

Have you optimised your contributions?

Check your concessional and non-concessional contributions to ensure they stay within the set caps. Exceeding these caps can result in additional tax obligations. The contribution caps for the 2025 financial year have increased, and are now as follows:

You may consider strategies such as contribution splitting with your spouse, claiming a spouse superannuation tax offset, or receiving a government co-contribution. These strategies can maximise your benefits but require meeting specific conditions.

Timing your contributions is critical, as all contributions must be in your SMSF's bank account by 30 June 2025.

Have you reviewed your paperwork?

Now is a good time to make sure your super fund’s records are up to date and supported by documentation for all assets and transactions undertaken throughout the year. A complete set of records can save time and money when preparing your SMSF’s annual compliance work. Your accountant will typically require documents such as bank statements, investment purchases and sales contracts, current investment valuations, current lease agreements, rental statements, expense invoices and insurance policies.

Obtain up-to-date valuations for all investments

The Australian Taxation Office (ATO) continues to focus on SMSF investment valuations. In late March, the ATO reminded trustees of the importance of valuing assets at market value each year and highlighted the auditor’s role in ensuring these valuations meet all requirements.

The ATO noted that:

• Failing to meet valuation requirements may result in additional tax liabilities for the fund and its members, and trustees could face administrative penalties.

• During the annual audit process, trustees must provide their SMSF auditor with objective and supportable evidence for the valuation of fund assets, including providing all relevant documents requested.

Remember your investment strategy

Your SMSF’s investment strategy is your road map for choosing investments consistent with your objectives and retirement goals. It should set out why and how you have chosen to invest your retirement benefits to meet these goals. It is important to review this strategy regularly, and document it in writing.

Are you affected by the proposed Division 296 tax?

Although it’s clear that the Division 296 tax proposal targets individuals with total superannuation balances exceeding $3 million, it’s appropriate to think about its potential impact and whether any action is needed before the end of the financial year.

At this stage, we generally recommend no specific action be taken, as the measure is yet to become law and may ultimately operate differently to the original proposal. However, it is sensible to understand exactly how the new tax will operate, model various scenarios and obtain up-to-date valuations for all SMSF assets.