Five tasks every SMSF trustee should review before 30 June

Five tasks every SMSF trustee should review before 30 June

With 30 June approaching, now is a good time for SMSF trustees to review a few key end-of-financial-year tasks. Some early planning can help your fund stay compliant, make the most of available opportunities and avoid unnecessary issues at audit time. Here are five areas to check, including a focus on members who may be affected by the new Division 296 superannuation tax. 

1. Check your contributions against the caps 

Check that all personal and employer super contributions for the year have been recorded correctly and sit within the relevant ATO limits: 

• Concessional, or before-tax, contributions include employer Super Guarantee contributions, salary sacrifice amounts and personal deductible contributions. For 2025-26, the annual cap is $30,000. You may be able to contribute more if you can use carry-forward concessional contributions and your total super balance was under $500,000 at 30 June 2025. If you plan to make a final top-up, allow enough time for the money to reach the fund before 30 June. 

• Non-concessional, or after-tax, contributions are capped at $120,000 for 2025-26. Some members may be able to contribute up to $360,000 using the bring-forward rule, depending on their total super balance. Take care not to exceed the limits, as excess contributions can lead to additional tax. 

Tracking contributions now can help you use any remaining cap space and reduce the risk of an unexpected tax bill. 

2. Make minimum pension payments, if they apply 

If your SMSF pays a retirement-phase pension to you or another member, check that the minimum annual pension has been paid before 30 June. If the fund misses the minimum, the earnings on the pension assets may lose their tax-free status for the year. To reduce the risk of a shortfall, consider rounding up to the nearest $10 and confirming the payment has cleared. If a member has taken more than the minimum, it may be possible to treat the excess as a lump sum withdrawal, known as a commutation, which can help manage transfer balance cap space. 

Note: death benefit pensions and transition to retirement income streams also need to meet annual minimum payment rules. Make sure the fund has enough cash or liquid assets to cover all required pension payments. 

3. Finalise year-end administration and compliance 

Use the lead-up to 30 June to get your SMSF records ready for audit and tax time. Key tasks include: 

• Updating records and minutes: Record key trustee decisions, such as starting pensions, reviewing the investment strategy or approving related-party transactions. Clear records help support the fund's audit and ATO obligations. 

• Asset valuations: Make sure all fund assets are valued at market value as at 30 June, particularly property, unlisted shares and collectables. Good evidence, such as market data or independent valuations, can make the accounts and audit process smoother. This is especially important for members who may be affected by Division 296. 

• Contribution and expense records: Check bank records, receipts and statements for final contributions, rollovers and fund expenses. Allocate contributions to the right member and category, and lodge any required notices, such as a Notice of Intent to Claim a Deduction for personal deductible contributions. 

• General compliance check: Confirm the fund is meeting key SMSF rules, including no loans to members, in-house asset limits, pension documents and insurance considerations where relevant. 

Completing these tasks before year-end can help avoid last-minute issues and keep the annual return and audit process on track. 

4. Review your investment strategy 

Year-end is a practical time to check that your fund's investment strategy still matches its objectives, risk profile and cash flow needs: 

• Asset allocation and diversification: Check whether the mix of cash, shares, property and other assets has shifted during the year because of market movements, contributions or withdrawals. Rebalancing may help keep the fund aligned with its strategy. 

• Liquidity needs: Make sure the fund has enough cash or liquid assets to pay pensions, expenses and tax liabilities in the year ahead. 

• Insurance and risk management: Consider whether any life or total and permanent disability cover for members remains appropriate and is reflected in the strategy. 

Record the review and any changes in writing, with trustee sign-off. This shows the trustees have actively considered the fund's investments and compliance obligations. 

5. Plan for the new Division 296 super tax 

From 1 July 2026, Division 296 will apply to individuals with a total super balance above $3 million. The tax adds 15% to earnings linked to the part of a member's balance above $3 million, with a further tier for balances above $10 million. Both thresholds are indexed over time. 

Two points are important: 

• It does not tax unrealised gains. The final law removed the earlier proposal to tax paper gains. Division 296 applies to realised earnings, calculated under the legislation. 

• It is assessed to the individual. The ATO assesses the member, not the fund, although the tax can generally be paid from super. 

Although the measure only affects members with larger super balances, trustees should start planning. The law includes a one-off election to reset the cost base of fund assets to their 30 June 2026 market value for Division 296 purposes. This may help quarantine earlier growth from the new tax. The details, including how the election applies to assets sitting at a loss, depend on final ATO guidance and regulations. Speak with your advisor before making a decision. 

Talk to Boyce. Our SMSF team can review your contributions, pension payments and Division 296 position.

This article contains general information only. It does not take into account your objectives, financial situation or needs and is not a substitute for personal financial, tax or legal advice. Figures are current for the 2025-26 financial year. Before acting, consider your circumstances and seek professional advice.