As the end of the financial year approaches, SMSF trustees and members should take time to review their affairs before 30 June. Addressing important matters before SMSF year-end review can help minimize compliance risks, maintain access to available tax concessions and ensure planning opportunities are not missed. The checklist below outlines several areas that may deserve attention before the financial year closes.
Contribution Timing in Your SMSF Year-End Review
• Ensure money reaches the fund before SMSF year-end: For contribution limit and deduction purposes, the relevant date is generally when funds are received by the SMSF rather than when a payment instruction is submitted.
Where money is transferred between separate banking institutions, additional time should be allowed for processing and settlement delays.
• Personally deductible contributions: A member who intends to claim a tax deduction for a personal super contribution must provide the required notice to the trustee and receive acknowledgement from the fund within the prescribed timeframe. In most situations, this must occur before the earlier of lodging the member’s income tax return or 30 June of the following financial year.
• Planning to start a pension shortly after year-end? If retirement income payments are expected to commence early in the next financial year, the deduction notice process should generally be completed first. Otherwise, the contribution may no longer qualify for a personal deduction.
Year-End Planning Opportunities for SMSF Members
• Accessing unused concessional limits: Members with a total superannuation balance below $500,000 at the previous 30 June may be eligible to utilise concessional contribution capacity carried forward from earlier years. This can allow larger deductible contributions to be made in the current year.
This strategy may be particularly valuable where an individual expects to realise a significant capital gain during the 2025–26 income year.
• Using the SMSF allocation timing concession: In certain circumstances, a contribution received during June may be held temporarily in an unallocated reserve before being allocated to a member during July. If implemented correctly, the contribution may count towards the following year’s limits rather than the current year’s cap.
Often referred to as a reserving arrangement, this strategy requires appropriate documentation, trustee resolutions and a trust deed that permits its use. When applied correctly, it may provide additional tax planning flexibility.
After-Tax Contributions in an SMSF Year-End Review
• Bring-forward provisions: Eligibility to access the bring-forward rules depends on a member’s total superannuation balance as at the previous SMSF year-end.
For eligible individuals, it may be possible to contribute more than the standard annual after-tax limit by utilising future years’ contribution capacity.
• Contributions for a spouse and government incentives: Contributions made to a spouse’s super account may provide access to a tax offset where eligibility conditions are satisfied. Lower-income earners who make personal after-tax contributions may also qualify for a government co-contribution if the relevant income requirements are met.
Contribution Limit Changes for Your SMSF Review
The following contribution limits currently apply during the 2025–26 financial year:
• Concessional contributions: $30,000.
• Non-concessional contributions: $120,000.
From 1 July 2026, these limits will increase to:
• Concessional contributions: $32,500.
• Non-concessional contributions: $130,000.
Retirement Planning and Transfer Balance Cap Review
• Required minimum pension payments: Where account-based pensions are being paid from the SMSF, trustees should ensure the minimum annual payment has been made to each pension member before SMSF year-end. Failing to satisfy this requirement may create administrative difficulties and affect valuable tax concessions.
• Other retirement income products may also require minimum annual payments. Certain arrangements impose maximum payment limits, and exceeding those limits may produce adverse consequences.
• Retirement transfer threshold planning: The general transfer balance cap will increase from 1 July 2026.
Members considering commencing a retirement pension near the end of the financial year should carefully consider timing. Whether the pension begins before or after 1 July 2026 may affect the amount that can be transferred into the tax-free retirement phase.
• Current general transfer balance cap for 2025–26: $2.0 million. This amount is scheduled to increase to $2.1 million from 1 July 2026.
• Not all members will have access to the full threshold. Depending on previous transfer balance account events, an individual’s personal limit may be lower.
Valuations and Compliance in Your SMSF Year-End Review
• Market value evidence: Trustees should ensure fund assets are supported by evidence demonstrating market value as close as practical to 30 June. Particular attention should be given to property holdings, connected-party assets and investments that are not publicly traded.
• Related-party dealings: Review leasing arrangements, rental agreements and services involving related parties to ensure they remain appropriately documented and reflect commercial terms.
• Pension records and trustee documentation: Pension commencements, commutations and benefit payments should be supported by properly executed documentation together with trustee resolutions and records.
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