As the 2025 financial year draws to a close, it’s essential for SMSF trustees to ensure their fund remains compliant with ATO requirements. This year end checklist covers the key tasks every trustee should complete before 30 June – from meeting minimum pension drawdowns to finalising asset valuations and contribution strategies. Taking action now can help avoind penalties, protect your fund’s tax concessions and give you peace of mind heading into the new financial year.
Make all minimum pension payments by 30 June 2025. The required amount is calculated by applying the relevant percentage factor to the pension account balance as of 1 July 2025. The percentage is based on the member’s age at 1 July 2025. Failure to meet this requirement will result in the pension losing its tax-exempt status for all or part of the financial year.
30 June falls on a Monday this year. Allow extra bank processing time for the weekend.
Contributions received prior to 30 June 2025 and recorded correctly will count to contribution caps in FY2025. Contribution caps for FY2025 are:
Promptly issue Letter of Acknowledgment to members who have provided the fund with a Notice of Intent to Claim form. Contact us if you need assistance with this.
Assess the insurance needs of fund members. Consider if current level of cover is sufficient and meets the member’s requirements as per superannuation regulations.
For additional information regarding insurance in superannuation: Insurance Through Superannuation
All SMSF assets must be recorded at market value in the year end financial accounts, including properties and unlisted assets. Auditors are getting tougher in this space following guidance and increased surveillance from the ATO.
Property valuations need to be based on objective and supportable data. Engaging a qualified independent valuer or real estate agent is recommended, especially if the property represents a significant portion of the fund’s assets. The valuation needs to include a description of the property, a capital and rental price range and references to equivalent properties in the local area.
Sourcing valuers can be difficult, particularly for commercial propertiers. Contact us if you require help sourcing a property valuation professional.
Valuations need to reference market conditions and equivalent asset sale prices. If investment is in an unlisted entity, full financial statements are necessary to support the value of the investment in your SMSF.
More information regarding asset valuation requirements can be found on the ATO website: ATO Guide to Valuing SMSF Assets.
Review the fund’s investment strategy. Consider if it reflects the members’ current circumstances and complies with regulatory requirements. Matters to consider include investments diversification, the liquidity of the fund’s assets and the ability to pay benefits when they fall due. Update investment strategy if required.
Also consider if a life event has occured for a fund member during the year. Did they change their work hours? Have they retired? It is critical to review the investment strategy when a life event occurs.
The ATO provides guidance on what is required in an investment strategy. For more information: Create your SMSF Investment Strategy
Maintain accurate and complete records of all transactions, decisions, and meetings. This includes copies of documents recording all investment transactions, bank statements, term deposit advices, minutes of trustee meetings, investment decisions, and documentation supporting asset valuations. All of these documents will be required as part of the year end accounting, audit and tax processes.
❌ Missing minimum pension payments
❌ Incorrect or stale asset valuations
❌ Unsegregated pension assets not appropriately accounted for
❌ Failing to review the insurance requirements annually
❌ Relying on outdated investment strategies
✅ Tip: Remember that 30 June 2025 is on a Monday. Ensure you allow sufficient time for bank processing when making contributions and paying benefits.