Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 421

6 quick SMSF tips for the 2021/22 financial year

A new financial year always brings a new 'to do' list. With six weeks over already, we’ve put together a list of six tips that are worth checking.

Tip 1: Pensions often start early in the financial year. Don’t forget that if the member made personal contributions in 2020/21, the relevant notices about the deduction must be dealt with before the pension starts (a “Notice of Intent to claim or vary a deduction for personal super contributions” and the relevant acknowledgement from the trustee). In fact, if the pension started on 1 July 2021 it’s already too late to give this notice to the fund. The deduction will be denied.

A related issue is to think about these notices when a lump sum is paid from an account that received personal contributions in 2020/21. If a lump sum is paid before the notices are given, the deduction is reduced.

Tip 2: If a member is going to use the 'contribution splitting' rules to transfer some of their concessional contributions in 2020/21 across to their spouse, do this as early as possible. It means these contributions will be earning income in the spouse’s name rather than the account of the original contributor. And if the contributions being 'split' are personal contributions, the notices mentioned in Tip 1 need to be dealt with first.

Tip 3: Some people with more than one job can be in danger of exceeding their concessional contributions cap even if they never receive more than the minimum Superannuation Guarantee amount from each employer. People can now 'opt out' of Superannuation Guarantee contributions if they meet certain conditions. One of these conditions is that the relevant forms must be lodged at least 60 days before the first quarter to which it applies. 

Tip 4: Remember that the minimum pension amounts for 2021/22 are still only 50% of the usual levels. Clients who need the full normal minimum pension to meet their income needs could consider treating the excess over the minimum as a lump sum payment from their accumulation account or a partial commutation from their pension account. The best way to achieve this is to have documentation in place now – before the minimum pension payments are met – that request the trustee to treat the payments this way. This makes it abundantly clear to auditors and the ATO that all decisions about how to treat payments were made prospectively rather than backdated after the event.

This is exactly one of the moments when Tip 1 becomes crucial. If the payment ends up being a lump sum from the member’s accumulation account it will be vital that the notices about tax deductions for personal contributions have already been given to the trustee for the 2020/21 contributions.

Tip 5: Revalue the fund’s assets before the auditor asks you to. This is particularly relevant for funds with assets such as property where values can change during the year. A current market value will be needed for the 30 June 2021 financial statements and it’s much easier to get that as close as possible to the applicable date. Asking an agent (or trying to find your own external evidence) to value your residential unit as at 30 June 2021 when it’s already (say) April 2022 makes the job harder than it needs to be. Don’t forget the same rules apply to properties held within any unlisted companies or unit trusts in which the fund invests. Similarly, check things like lease agreements to see if rental payments made by the fund should be increased in line with CPI.

Tip 6: SMSFs owning bullion or similar assets will be familiar with the difficulties in proving to the fund’s auditor the existence of the asset at 30 June, particularly where it is stored in a private vault or deposit box with a bank. Often the auditor will ask for a photo of the bullion on top of a newspaper showing the date. Getting this evidence documented now will make the year end audit a lot simpler.


Meg Heffron is the Managing Director of Heffron SMSF Solutions. This is general information only and it does not constitute any recommendation or advice. It does not consider any personal circumstances.



Leave a Comment:



Why it’s better to be a small investor

Latest SMSF updates from the ATO

Check tax exemption on income from super pension assets


Most viewed in recent weeks

Is it better to rent or own a home under the age pension?

With 62% of Australians aged 65 and over relying at least partially on the age pension, are they better off owning their home or renting? There is an extra pension asset allowance for those not owning a home.

Too many retirees miss out on this valuable super fund benefit

With 700 Australians retiring every day, retirement income solutions are more important than ever. Why do millions of retirees eligible for a more tax-efficient pension account hold money in accumulation?

Reece Birtles on selecting stocks for income in retirement

Equity investing comes with volatility that makes many retirees uncomfortable. A focus on income which is less volatile than share prices, and quality companies delivering robust earnings, offers more reassurance.

Is the fossil fuel narrative simply too convenient?

A fund manager argues it is immoral to deny poor countries access to relatively cheap energy from fossil fuels. Wealthy countries must recognise the transition is a multi-decade challenge and continue to invest.

Superannuation: a 30+ year journey but now stop fiddling

Few people have been closer to superannuation policy over the years than Noel Whittaker, especially when he established his eponymous financial planning business. He takes us on a quick guided tour.

Anton in 2006 v 2022, it's deja vu (all over again)

What was bothering markets in 2006? Try the end of cheap money, bond yields rising, high energy prices and record high commodity prices feeding inflation. Who says these are 'unprecedented' times? It's 2006 v 2022.

Latest Updates


How to enjoy your retirement

Amid thousands of comments, tips include developing interests to keep occupied, planning in advance to have enough money, stay connected with friends and the community ... should you defer retirement or just do it?


Results from our retirement experiences survey

Retirement is a good experience if you plan for it and manage your time, but freedom from money worries is key. Many retirees enjoy managing their money but SMSFs are not for everyone. Each retirement is different.


Why short-termism is both a travesty and an opportunity

On any given day, whether the stockmarket rises or falls is a coin toss, but stay invested for 10 years and the odds are excellent. It's at times of market selloffs that opportunities present for long-term investors.

Investment strategies

Fear is good if you are not part of the herd

If you feel fear when the market loses its head, you become part of the herd. Develop habits to embrace the fear. Identify the cause, decide if you need to take action and own the result without looking back. 

No excuses: Plan now for recession

The signs of a coming recession are building, especially in the US. In personal and business decisions, it's time to be more conservative and engage in risk management until some of the uncertainty is resolved. 


The fall of Volt Bank removes another bank competitor

The startup banks were supposed to challenge the lazy, oligopolistic major banks, but 86 400, Xinja and now Volt have gone. Why did Volt disappear so quickly when it had gained deposit support and name recognition?


Three main challenges to online ads and ‘surveillance capitalism’

Surveillance capitalism refers to the collection and use of consumer data to further profits. Will a renewed focus on privacy change the online-ad business model, or is it too entrenched?



© 2022 Morningstar, Inc. All rights reserved.

The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.

Website Development by Master Publisher.