SMSF trustees have been warned that time is running out to be compliant with the superannuation rules taking effect on 1 July 2017.
The SMSF Association is urging trustees with question about the changes to seek advice.
“Time is running out. The changes to superannuation that became law late last year mean planning for the end of this financial year assumes a higher priority compared with previous years,” said SMSF Association CEO John Maroney.
“Trustees need to make sure they are fully aware of all the issues flowing from the changes, and the best way to do this to get advice from an SMSF Association independently endorsed specialist,” he said.
“Only by working closely with an SMSF specialist will trustees be able to have the confidence to know their fund is compliant with the new legislation.”
Maroney said the introduction of the Transfer Balance Cap was an area in which many trustees would need advice, including whether to remove excess balance from their pension accounts, if to retain excess in accumulation phase and the preparation of minutes.
“The removal of the tax-exempt status from earnings on fund investments for those using transition to retirement pensions is another change where specialist advice could prove invaluable to trustees.”
“Now is also the time to create an action plan with your SMSF specialist to gain access to the complex capital gains tax (CGT) relief afforded to funds affected by the transfer balance cap and transition to retirement changes.”
“The CGT relief rules allow funds to reset the cost base of assets affected by the law changes before the end of the financial year. This is a valuable but one-off opportunity for SMSF members to minimise the impact of the law changes on their retirement savings.”
Maroney also reminded SMSF trustees about the lower concessional and non-concessional contribution caps applying from 1 July 2017.
“Remember, there is only about five weeks to go until the end of the financial year. Getting the right specialist advice now could help trustees to set up their SMSFs in the most efficient way when the new regime takes effect from 1 July.”