Common EOFY Traps for SMSFs And How to Avoid Them

As 30 June approaches, it’s a crucial time for SMSF trustees to review their fund’s compliance and ensure all obligations are met. The end of financial year is often when small oversights can turn into costly mistakes but with a few proactive steps, you can avoid unnecessary stress and stay on the right side of the ATO.

Here are the most common EOFY traps for SMSFs, and how to avoid them:

1. Contribution Timing and Reporting Errors

Super contributions must be received by the fund before 30 June to count for this financial year. Be mindful of processing times, especially for electronic transfers near the deadline. Also, double-check that concessional and non-concessional caps haven't been exceeded. It is also very important to provide your fund administrator with a “notice of intent to claim a tax deduction” should any of your personal contributions for the financial year fall into the deductible (concessional) category.

2. Asset Valuations and Documentation Gaps

All assets must be valued at market value as at 30 June. This includes obtaining updated valuations for property and unlisted investments. Incomplete documentation or informal valuations are a red flag for auditors and may trigger ATO scrutiny.

3. Related-Party Transactions

Dealing with related parties can be risky territory if not properly managed. Ensure all transactions are conducted at arm’s length, properly documented, and comply with SMSF rules, particularly when it comes to property leasing or lending arrangements.

4. Key Actions Before 30 June

·       Ensure all transactions are recorded and bank reconciliations are up to date

·       Confirm minimum pension payments have been met (if applicable)

·       Review and finalise investment strategy updates, especially if asset allocations have changed

·       Work with your accountant or adviser to address any potential issues early

EOFY is a great time to take stock of your fund’s position and set a strong foundation for the year ahead. If you’re unsure about your obligations, now is the time to seek advice. Contact the team at Maher Group today on 8522 4500.