The ATO has issued a SMSF News Alert setting out a basic checklist of super changes that may require action by 30 June 2017 to avoid additional tax consequences:
- 2015-16 SMSF annual returns must be lodged by 30 June 2017;
- non-concessional contributions – those looking to take advantage of the existing non-concessional caps must ensure the super fund receives the contributions before 1 July 2017, when contribution limits change. Those under age 65 looking to use the existing 3-year bring forward cap of $540,000 by 30 June, should also check to ensure they haven’t triggered the bring-forward rule in the previous 2 financial years;
- pension cap – an individual that expects to have total retirement-phase interests above the $1.6m transfer balance cap will need to transfer the excess amount to accumulation phase or withdrawn the excess from super. If unsure, the ATO says the individual should give instructions to the SMSF trustee, on or before 30 June, to commute any excess. Minutes or a file note should also be drafted;
- CGT relief – to access the transitional CGT relief for the pension and TRIS reforms, the ATO says it is necessary to act now as the CGT relief will not be available from 1 July 2017;
- FAQs – the ATO has set out more information on the super changes, including the following issues: Do I need to obtain an actuarial certificate for 2016-17 if I am only using the proportionate method for a short period? Can I rely on an actuarial certificate that is provided for the entire income year, from 1 July 2016 to 30 June 2017? When valuing a property in an SMSF, does a formal valuation need to be conducted, or will a market appraisal from a real estate valuer suffice? Can I make a request to my SMSF to commute excess amounts above my transfer balance cap, where the value of that excess amount is not yet known? What are my reporting obligations for the transfer balance cap and the total superannuation balance?