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End of financial year super - new rules, deductions & off market transfers

June 2012


There are a number of things you'll need to keep in mind if you're planning to top up your super before the end of the financial year.

New rules for artwork & collectibles
New regulations guide what collectibles SMSFs can buy and sell, and how those collectibles are managed.  

Assets acquired by the fund from 1 July 2011 need to immediately comply with new regulations. Assets held by the fund at 30 June 2011 benefit from transitional rules that allow trustees until 1 July 2016 to comply.  The regulations seek to ensure that trustees do not gain a benefit from assets now.  

For example, you cannot hang artwork purchased by your SMSF on your wall at home (or in your office) or wear jewellery acquired by the fund.

Deductibility of superannuation contributions
To claim a tax deduction for super contributions as an employer or as an individual, the payment needs to be received by the fund before 30 June.  Merely incurring a liability will not work.

Off market share transfers
Impending changes (from 1 July but are not yet law) will prevent trustees from using off market transfers to transfer shares into their SMSF. This change improves the integrity rules of in the administration of SMSFs.

For example, if you personally own BHP shares and want to transfer them into your SMSF you could simply complete an off market share transfer to transfer them into the fund.  However, the new rules will require you to sell your shares on the market, contribute the proceeds to your fund, then the fund will need to purchase the BHP shares.

Get your super house in order
Contact us on 02 9957 4033 to ensure your superannuation is in good shape for the end of the financial year.

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Last updated June 2012. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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