Essential EOFY Checklist for Self Managed Super Funds
- WT Capital
- May 26
- 9 min read
As the financial year draws to a close, trustees of Self Managed Super Funds (SMSFs) must shift their focus to compliance, reporting, and strategic planning. Whether your SMSF is focused on shares, cash, or direct property, the 30 June deadline is non-negotiable—and so are your obligations.
To help you stay on track and avoid costly errors, we’ve compiled an EOFY checklist for Self Managed Super Funds.
It’s tailored to trustees who want to maximise compliance and performance—especially those with property assets in their fund.
1. Confirm All Contributions Are Made Before 30 June💰
🕒 Timing is everything.
To claim tax deductions or ensure personal contributions count for this financial year, they must be received by the SMSF’s bank account before 30 June 2025—not just processed or transferred. This is a common pitfall. Payments initiated near the end of June, especially electronic transfers from other banks, might not clear in time, resulting in the contribution being allocated to the next financial year. Always allow a few business days for transfers to process.
Contribution types to check:
Employer SG contributions: Verify that all compulsory super guarantee contributions from your employer have been paid into your SMSF. Cross-reference your payslips with your SMSF bank statements.
Salary sacrifice arrangements: If you have an agreement with your employer to salary sacrifice into super, confirm that these amounts have been consistently paid throughout the year and are up-to-date.
Personal concessional contributions: These are personal contributions for which you intend to claim a tax deduction. You must notify your SMSF of your intention to claim a deduction before you lodge your tax return for the year in which the contribution was made.
Non-concessional (after-tax) contributions: These are personal contributions made from your after-tax income and generally don't attract a tax deduction. They are crucial for building your super balance using taxed income.
Cap reminder and strategic considerations:
Concessional cap: $27,500. This includes employer contributions, salary sacrifice, and personal deductible contributions. Exceeding this cap can result in additional tax and administrative penalties. Remember the 'carry-forward' rule for unused concessional contributions if your total super balance was under $500,000 on the previous 30 June. This allows you to use up to five years of unused cap amounts.
Non-concessional cap: $110,000 (or up to $330,000 under the bring-forward rule). The bring-forward rule allows you to bring forward two future years of non-concessional contributions, enabling you to contribute a larger lump sum. This is particularly relevant if you've recently sold an asset outside super and want to move the proceeds into your fund, or if you're approaching retirement and wish to maximise your super balance. Be mindful of your total super balance as at the previous 30 June, as it impacts eligibility for non-concessional contributions.
Actionable Tip: If you're planning a significant contribution close to EOFY, initiate the transfer well in advance – ideally by mid-June – to avoid any last-minute processing delays.
2. Review Minimum Pension Payments (If in Drawdown Phase)👵👴
If your SMSF is paying a retirement phase income stream, ensure you’ve met the minimum pension withdrawal for the year. Falling short could result in the income stream being deemed non-compliant, losing valuable tax exemptions and potentially leading to significant tax liabilities for the fund. This is a critical compliance point often scrutinised by auditors.
Rates depend on your age—e.g., 4% for members under 65, scaling up to 14% for those over 95.
Calculation: The minimum pension payment is calculated based on your account balance at 1 July of the financial year (or when the pension commenced if later) and your age.
Payment Methods: Ensure all payments have been physically withdrawn from the SMSF bank account and paid to the member. Payments can be made as a lump sum or regular instalments throughout the year.
Documentation: Keep clear records of all pension payments, including the date and amount, to demonstrate compliance to your auditor.
Strategic Opportunity: While meeting the minimum is essential, consider your personal cash flow needs and tax situation. You are permitted to withdraw more than the minimum (up to certain limits for transition to retirement pensions), but generally there's no maximum withdrawal limit for regular account-based pensions in retirement phase.
Considerations for property-heavy SMSFs: If your fund has significant property assets, ensure you have sufficient liquidity to meet pension payments without having to sell assets prematurely. This might involve holding a portion of the fund's assets in cash or more liquid investments.
3. Value Fund Assets at Market Value📈
To prepare for annual financial statements and audit, all SMSF assets must be accurately valued at 30 June. The ATO requires that assets are valued at their "market value" at the end of each financial year, which reflects the price a willing buyer would pay a willing seller in an open market.
Listed shares: Use the closing price on 30 June. Access reliable financial data sources for accurate closing prices.
Property: Use a recent market valuation (by a licensed valuer or real estate agent with supporting sales data). While an independent valuation isn't required every year unless there's a significant event (like a major renovation, sale, or transfer), it's crucial to have reasonable and supportable evidence for your valuation. This could include:
A sworn valuation by a qualified independent valuer.
A real estate agent's appraisal (R.E.A) supported by comparable sales data for properties in the same area.
Independent online property valuation tools, again, with supporting data.
It's important to document the methodology used for valuation and keep all supporting evidence for your auditor.
Cryptocurrency: Use a reputable exchange’s end-of-day rate. Be meticulous with exchange rates and transaction history given the volatility of crypto assets.
Other assets: For unlisted investments, collectibles, or other unique assets, ensure you have a clear and justifiable method for determining their market value.
WT Capital clients with SMSF property receive updated valuations annually to support audit compliance and accurate reporting. This service helps streamline the audit process and ensures your fund's financial statements accurately reflect its true worth.
4. Organise Your Records for the Auditor🗃️
Every SMSF must undergo an independent audit before lodging its annual return. A well-organised set of records will significantly streamline the audit process, reduce audit fees, and minimise potential queries. Start gathering documents early to avoid last-minute stress.
You’ll need to compile:
Bank statements: All statements for the SMSF's bank accounts for the entire financial year.
Contribution and rollover records: Documentation supporting all contributions received (e.g., employer statements, personal contribution receipts) and any rollovers from other super funds.
Investment purchase/sale documentation: Contract notes, settlement statements, and any other relevant paperwork for all investment transactions during the year.
Rental income statements (for SMSF property owners): Detailed records of all rent received, including dates and amounts.
Lease agreements (especially for related-party commercial leases): A current and legally binding lease agreement is crucial for any property leased to a related party.
Insurance policy statements: Proof of premiums paid and current policy details for any insurance held within the fund.
Trustee resolutions: Any resolutions made by the trustees throughout the year, such as decisions on investment strategy changes, pension commencement, or contributions.
Member statements: Statements detailing member balances and transaction summaries.
Tip for Related-Party Property Leases: If you lease property to a related party (like your business), ensure:
Rent is at market rate: Obtain independent evidence (e.g., a real estate agent's appraisal) to demonstrate that the rent charged is consistent with what would be charged in an arm's length transaction. This is a highly scrutinised area by the ATO.
Lease is in writing: A formal, legally binding lease agreement must be in place.
Payments are up to date: All rent payments must be made on time and in accordance with the lease agreement. Irregular or missing payments can trigger compliance issues.
Considerations for Property Maintenance and Expenses: Keep detailed records of all expenses related to your SMSF property, such as council rates, body corporate fees, repairs, maintenance, and property management fees. These expenses can be claimed as deductions for the fund.
5. Check Insurance Requirements🛡️
Trustees are required by law to consider insurance for members as part of the fund’s investment strategy. This doesn't necessarily mean the SMSF must hold insurance, but the consideration process and the decision made must be documented. The purpose is to protect members' retirement savings from unexpected events.
Even if insurance is held outside the fund, this review should be documented. If your fund holds life, TPD (Total and Permanent Disability) or income protection cover, ensure:
Premiums have been paid: Confirm all premiums are up-to-date to ensure the policy remains active.
Coverage is still suitable: Review the level and type of coverage in light of members' changing circumstances (e.g., family situation, debt levels, income changes).
Policies are aligned to fund objectives: Ensure the insurance aligns with the SMSF's overall investment strategy and objectives for its members.
Documentation is key: Your annual trustee minutes or investment strategy review should explicitly state that the trustees have considered the insurance needs of each member.
6. Review Investment Strategy and Document Any Updates📝
Your SMSF’s investment strategy is the cornerstone of its operation. It must be:
In writing: A formal document outlining how the fund's assets will be invested.
Reviewed regularly: At least annually, but more frequently if there are significant changes to members' circumstances or market conditions.
Reflective of actual investments held: The strategy shouldn't just be a theoretical document; it must genuinely reflect the current and planned investments of the fund.
Aligned with the risk profile, liquidity needs and retirement goals of members: This is paramount. The strategy should consider:
Diversification: How the fund's assets are spread across different asset classes (e.g., shares, property, cash). For SMSFs with a single large asset like property, this section needs careful consideration and justification.
Liquidity: The fund's ability to meet its cash flow needs, such as pension payments, expenses, and potential loan repayments.
Ability to pay benefits: How the fund will ensure it can pay retirement benefits when members reach retirement age.
Insurance: As mentioned previously, how insurance for members has been considered.
For SMSFs holding property, this means ensuring your strategy explicitly mentions:
Direct property exposure: Clearly state the fund's intention to invest in direct property, including the type of property (e.g., residential, commercial) and its role within the portfolio.
Rental income and liquidity considerations: Address how rental income contributes to the fund's cash flow and how potential periods of vacancy or unexpected property expenses will be managed to maintain liquidity.
Loan arrangements (if you have an LRBA): If your fund uses a Limited Recourse Borrowing Arrangement (LRBA) to acquire property, the strategy must acknowledge the existence of the loan, its terms, and the associated risks. This includes the need for a buffer for interest payments and other property expenses.
Risk mitigation for single-asset SMSFs: If property represents a significant portion, or even all, of your SMSF's assets, your investment strategy must explicitly address how the risks associated with a lack of diversification are managed. This could include holding substantial cash reserves, having other personal investments outside super, or having a clear plan for future diversification.
Actionable Tip: Update your investment strategy document and minute the changes. This demonstrates to your auditor and the ATO that you are actively managing your fund in accordance with your obligations.
7. Consider Strategic Opportunities Before Year-End 💡
The lead-up to 30 June is also a chance to optimise your position and potentially reduce your tax liability for the current financial year.
Bring-forward contributions: If you are eligible and expect a windfall (e.g., a bonus, inheritance, or capital gains from selling personal assets), utilising the bring-forward rule for non-concessional contributions before 30 June could be a wise strategy to boost your super balance.
Make deductible personal contributions: If you're looking to reduce your taxable income for the current year, making a personal deductible contribution to your SMSF before 30 June is an effective strategy. Remember to notify your fund of your intention to claim the deduction.
Prepay expenses: Consider prepaying expenses (like insurance premiums, loan interest, or property management fees) if it benefits your fund's tax position. Generally, expenses paid before 30 June can be claimed as a deduction in the current financial year. Check with your accountant regarding specific prepayment rules.
Review loan arrangements for limited recourse borrowing (LRBAs) to ensure compliance:
Interest payments: Ensure all interest payments are up-to-date according to the loan agreement.
Loan terms: Re-familiarise yourself with the loan terms and conditions to ensure ongoing compliance.
Repayment schedule: Confirm that scheduled repayments are being met.
Loan covenants: Be aware of any covenants and ensure they are being adhered to.
Property expenses: Ensure funds are available for all property-related expenses, as these are critical to maintaining the asset and its income-generating potential.
Tax Planning for Property Sales (if applicable): If your SMSF sold a property during the financial year, work with your accountant to understand the capital gains tax implications and ensure all necessary records are in order. Consider if any capital losses can be offset against gains.
Final Thought: Stay Ahead of the Curve
Running an SMSF is empowering—but it’s not passive. The year-end period is when your diligence (or lack of it) shows up in black and white. Proactive management not only ensures compliance but also unlocks opportunities for growth and tax efficiency. By staying organised and reviewing your fund's position regularly, you can confidently navigate the complexities of SMSF administration and optimise your retirement savings.
At WT Capital, we specialise in helping trustees with direct property strategies stay compliant, tax-effective, and aligned with their long-term retirement goals. Our expertise in property valuations and SMSF compliance provides a crucial advantage.
Need help preparing your fund for 30 June? We work hand-in-hand with SMSF accountants, administrators and valuers to streamline compliance and identify opportunities. Don't leave your EOFY preparations to the last minute – a well-prepared fund is a well-performing fund.
