Effective from 1 July 2021, SMSFs can now have up to 6 members (previously 4). For larger families, this could mean no more having to choose the ‘favourites’ or potentially consolidating two (or more) family SMSFs into one. As the proverb goes (or doesn’t go): “The family that invests together via the same SMSF stays together.”

There are many pros and cons to extending the members (so to speak) of an SMSF and you should not make this decision lightly just because you now can. All members must generally also be trustees or directors of a SMSF trustee company and so wield a great deal of power and influence over the SMSF. There are also some administrative requirements involved in adding members.

If you’d like to know more about the changes and requirements, you know where to find us!

The catch-up super contribution rules are in play and may be a useful way to smash more tax deductible contributions into super.…what does this mean for you?!

You can now potentially make additional contributions as a catch-up on unused concessional cap amounts from previous years!!!

For example, your concessional contribution cap was $25,000 last year and if your total concessional contributions (including any super guarantee or salary sacrifice payments from your employer) was only $15,000, you may be eligible to use your previous year’s excess amount (e.g. $10,000) as part of this financial year in addition to this year’s cap of $25,000. That’s potentially a $35,000 tax deductible contribution this year.

To be eligible your total super balance at the end of the previous financial year must be less than $500,000. We can access this information and your carry forward unused contribution amounts instantly via the ATO portal (and you may also be able to via My Gov).

You’ll have to be quick! Super contributions need to be received by your fund on or before the 30th June to be included as part of this financial year. But please note, you may still be eligible to catch up in later financial years also.

If you’re unsure about your total super balance, concessional caps or whether or not you have any unused cap amounts from previous years, please feel free to give us a call.

The Halletts Team