2016-17 End of Financial Year (EOFY) processing for a SMSF may be a lot more complex compared to the normal Year End Processing due to the 2017 Super Reforms. If your clients are affected by the following reforms, changes are recommended to the regular year end processing steps in Class:
- Commutations of Retirement Phase Income Streams (RPIS) in excess of the $1.6m General Transfer Balance Cap.
- Application of the transitional CGT Relief.
We have created the 2017 EOFY processing decision trees for both unsegregated and segregated funds to assist you with your decision making in relation to the transitional CGT relief for the relevant SMSFs as well as the recommended end-of-financial-year processing steps in Class.
The following should be processed in Class before commencing the EOFY procedure for the 2016-17 financial year:
- All buy/sell transactions must be processed.
- All corporate actions must be processed.
- All income and expense transactions must be processed.
- All member related transactions (e.g. Contribution, Pension Drawdowns) must be processed except the Commutation of RPIS in excess of $1.6m transfer balance cap.
- All cash items should be classified or matched off with appropriate business events or transactions.
Steps for EOFY Processing
You should read these 2017 EOFY processing decision trees/flowcharts together with CGT Relief Fact Sheet and Record Keeping Documents for Transitional CGT Relief.