Get Your SMSF Tax Return In Early

At the start of a new financial year, most self-managed pension funds usually think the last thing about filing their annual tax returns right away. However, it may be beneficial for retirees to receive their SMSF declaration at the beginning of the year.

July 1 is an important moment for retirees, as the starting balance at this point sets the new minimum retirement limit for the year. For more information about SMSF tax return, you can visit www.rwkaccountancy.com.au/smsf/.

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In most cases, given the volatility, the SMSF balance will decrease in the first half of 2020 and when combined with a 50% reduction in the minimum retirement absorption requirement for 2020/21, this could be a great opportunity to significantly increase the monthly pension benefits to reduce. Payments from SMSF this fiscal year.

For example, real estate assets may have fallen in value, at least temporarily, which could provide a valuable opportunity for a member's retirement account to decline in value starting July 1. For those who are no longer in employment and unable to make additional contributions, saving as much as possible in their SMSF tax-free pension should be a priority.

This fiscal year also brings some new contribution rules that can come back into effect on July 1 with a reduced opening balance.

Given the reduced income levels of some SMSFs in the last fiscal year, early refunds may also result in tax refunds arriving early in SMSF's bank accounts if SMSF receives a significant portion of the dividends it has opened.

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