SPAA urges superannuation investors to be proactive at tax time

The Self-Managed Super Fund Professionals’ Association of Australia (SPAA) has called for Australian superannuation investors to be proactive, yet cautious, about maximising their tax position in the lead-up to the end of the financial year.

With the superannuation rules in a constant state of change, SPAA technical director Peter Burgess said it could be difficult for investors to keep up to date with strategies that might benefit them — and sloppy attention to detail could result in penalties.

“Investors keen to maximise their superannuation savings should be pro-active about claiming tax benefits — including deductions — and seek advice if unsure. Also ensure you keep all your relevant paperwork to save stress when it’s time to claim a benefit or deduction,” Burgess said.

He said investors who wanted to make large superannuation contributions should exercise extreme care regarding the amount and type of contribution they made to avoid excess contributions penalties.

For example, any type of contribution made during the last two financial years might affect the contributions that can be made this financial year.

“For members in the pension phase, ensure that you have received the required minimum pension amount by 30 June, otherwise the investment income derived from the assets supporting that pension may no longer be exempt from tax,” Burgess added.

He highlighted that deductions were usually not significant for self-managed super fund (SMSF) members in the accumulation phase — although it was important to ensure expenses were actually incurred or paid before June 30 so that they could be deductible for the year in question.

“SMSF members should consult a qualified SPAA specialist adviser to help navigate them through the process.”