End of Financial Year 30 June 2025 Updates

It is almost the end of another financial year and we just wanted to share some items that you might need to consider prior to 30 June 2025.

Top 3 action items

Have you taken your minimum pension?
Have you made your Super Contributions before 30 June 2025?
- Individual – Have you got room in your caps?
- Employer – To get your tax deduction for employee super.
Do you need to arrange property valuations?

Minimum Pension Requirements need to be withdrawn prior to 30 June 2025.

We are currently working through and contacting clients that have pensions in their SMSF to ensure their minimum pension withdrawals have been met. Not taking the minimum pension could result in the fund losing the tax free status on the earnings generated to support the pension accounts. As such it is a crucial item that needs to be considered prior to 30 June 2025.

Contributions Caps

Concessional Contributions Cap	$30,000
Non-Concessional Contributions Cap (Tax Free)	$120,000

Concessional Contribution (CC) Cap
A member’s CC cap may be higher than the standard CC cap amount if their Total Super Balance was less than $500,000 on 30 June of the previous year. That is a member can access any unused CC cap amounts carried forward (from the previous 5 financial years).
Non-concessional Contribution (NCC) Cap
Members under age 75 on 1 July 2024, may trigger the ‘bring-forward’ of up to two years’ NCC cap. This could enable up to 3 x the annual NCC cap to be contributed – subject to Total Super Balance being less than $1.66 million.
If this is of interest to you, please contact us with any questions.

If you are an employer
To get your tax deduction for the superannuation that is payable to your employees, you must ensure that the payment and super stream reporting is approved and processed by the clearing house before 30 June 2025.

Given there is usually a 7 – 10 day clearing period, you must attend to this as soon as possible.

Valuations for Property (directly held or through other entities)

As you are aware it is a requirement for SMSF trustees to report their assets at market value in their financial statements every year. The ATO has now advised that where the value of a SMSF’s asset remains unchanged from the previous year, the SMSF may have contravened the super rules by not reporting the investment at its correct value. This may cause the auditor to lodge an auditor contravention report if they are not comfortable with the supporting evidence.

In light of the above, the SMSF will need to obtain a valuation for property each and every year. This valuation must include at least 3 recent comparable sales data.

Your property agent or regular valuation contact may be able to help you obtain this valuation at 30 June 2025. If you do not have an existing contact, some options to source this valuation are:
True Market –https://truemarket.com.au
Acumentis Property –https://acumentis.com.au

As the valuation process can take time, we request that you obtain a valuation as soon as possible to allow for the efficient and smooth preparation of the 30 June 2025 financial statements and audit for your fund.
Division 296 tax – still not law
Although the intention by the Albanese Government is to go ahead with the tax it has not become law yet. There are still areas that are uncertain as to how these are going to be included – namely how are defined benefit pensions (CSS, PSS) going to be valued and its inclusion in the $3Mil value.
Due to this we generally recommend no specific action be taken as the eventual legislation may differ to what is currently proposed. However, ensuring that you have the most up to date valuations on all your assets will be crucial and would be prudent to start organising these now.
Rest assured once the legislation has passed, and we have had a chance to digest it we will be contacting clients affected to discuss how we can assist with managing this tax.

Reminder about Greenlight Online
As a reminder you are able to check your pension and contributions by logging into your Greenlight Online account at https://www.greenlightsuper.com.au/

If you have any questions in relation to the above, please do not hesitate to contact us.