COVID-19 and SMSFs

COVID-19 and SMSFs

Due to the economic fallout and market volatility created by the Coronavirus, the Australian Government and the ATO have each separately announced various measures designed to help retirees navigate this new financial landscape. Some law changes made by Government affecting super fund members are:

  • Temporary halving of minimum pension payments;
  • Temporary early release of super; and
  • Reduction in the social security deeming rates.

 

Some changes that have been introduced by the ATO relating to SMSF members are:

  • Changes to compliance action in response to rent reductions; and
  • Temporary repayment holidays for related party lenders.

 

The details of those changes are outlined in our Self Managed Super Newsletter 2020 below:

KMT Newsletter – SMSF May 2020

Key dates and reminders

30 June 2020

Tax return and payment due date for SMSFs lodged via a tax agent if the original due date was 15 May or 5 June.

Trustees should ensure that by Tuesday 30 June 2020:

  • The minimum annual pension payment (if required) is made before this time in order to avoid the payment being processed in July; and
  • If intending to deduct a contribution in the 2020 income year, the contribution should be received by the fund before this time (other conditions apply).

 

Also, note that contributions generally count toward the fund’s concessional or non-concessional contributions in the year they are credited to the fund’s bank account.

Please do not hesitate to contact us at KMT Partners if you need any assistance.

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