SMSF tips for the new financial year

SMSF tips for the new financial year

So its a new financial year.  You have survived the busy period (well done) and taken a breather.  Now it is time to plan for 2015. 

I suggest you consider 3 simple client strategies at this time of year:

1. Non-Concessional Contributions - If your clients are going to make Non-Concessional Contributions to super this year then July is the best time of year to do so.  Why is that?  Because the sooner they get their money into super, the less tax they pay on investment income outside super.  Keep in mind that you might have clients who used the Bring Forward Rule 3 years ago that are now eligible to do so again.
2. Salary Sacrifice - You might have clients that can start salary sacrificing, especially if their cash flow has improved.  Perhaps they were given a salary increase.  Perhaps their kids finished school or moved out of home.  Or perhaps both parents are now working so their is some extra money available.  Whatever the reason, the sooner the salary sacrifice commences, the bigger the tax benefit.
3. Start a pension - July is a great time of the year to start a pension.  Don't forget that you need to make a decision to start the pension at the time - your clients can't decide in 2016 or 2017 (or even August 2015) that they wanted to start a pension in July 2015.

Of course all accountants are aware of these strategies.  They key is that the earlier in the year they are implemented, the better off your clients will be.  These 3 simple strategies all provide a good reason to get on the front foot and have a conversation with your clients.  In a world that is becoming increasingly commoditised, relationships and proactive advice are the key things that will set you apart from your competition.

THIS ARTICLE WAS CORRECT AT THE TIME OF WRITING. SMSF RULES CHANGE OVER TIME AND THE ARTICLE MAY BE LESS RELEVANT IN THE FUTURE.