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Importance of reviewing SMSFs by June 30

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Yes, I know May/June is a very busy time each year and it is easy to focus on client businesses, assuming the SMSF, with few transactions in it, will all be OK until post June 30 when the admin is done.

Here are some examples of 'surprises' which can be spotted and sorted before June 30.

  • A rollover from another fund was called a new contribution
  • A large sum was lent to a family member
  • Monies switched backwards and forwards with the operating company
  • Funds used to buy Persian rugs or jewellery as an investment
  • Monies from a maturing Term Deposit went into a personal account, not into the SMSF
  • No sign that Taxation Instalments were paid

Next, it is worth a member of your firm reviewing the assets of the Fund. Rather than waiting for the end of the administration work, you can send out Confirmation Requests in, say, late May. Then responses will be available for review during June meetings.

I consider an appropriate June review is important for the proper protection of all SMSFs.

Should you need more information, please call our office.