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SMSF End of Year Checklist for 2026

Prepare your SMSF for 2026 with this essential end-of-year checklist.

Learn key ATO compliance steps, audit tips, and pension rules

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As the 2025 financial year draws to a close, self-managed super fund (SMSF) trustees across Australia should take time to review their fund’s performance, compliance, and documentation. An organised approach before 30 June not only helps maintain compliance with Australian Taxation Office (ATO) requirements but also sets your SMSF up for a strong start to 2026.

At Latitude Accountants, our award-winning Chartered Accountants specialise in helping trustees optimise their SMSF strategies β€” delivering results The Latitude Way. Here’s your essential SMSF end-of-year checklist.

All figures and thresholds apply to the 2024 to 2025 financial year and may change with future ATO updates.

What Is an SMSF End-of-Year Review?

An SMSF end-of-year review is a structured process of checking your fund’s compliance, financial performance, and administrative obligations before the close of the financial year. It helps trustees ensure that all contributions, pension payments, and audits are completed in line with ATO and Superannuation Industry (Supervision) (SIS) regulations.

Whether your fund is in accumulation or pension phase, this review ensures your SMSF continues to meet its sole purpose β€” providing retirement benefits to members.

SMSF

1. Verify Minimum Pension Payments

Q: Why do minimum pension payments matter?
If your SMSF is paying a retirement-phase income stream, you must make the minimum pension payment before 30 June 2025 to maintain your entitlement to Exempt Current Pension Income (ECPI). Without ECPI, your fund could lose its tax-free status on pension earnings and face up to 15% tax.

Minimum Pension Percentages for 2025:

  • Under 65: 4%
  • 65–74: 5%
  • 75–79: 6%
  • 80–84: 7%
  • 85–89: 9%
  • 90–94: 11%
  • 95 and over: 14%

Latitude Tip: Complete pension withdrawals by 15 June 2025 to allow for processing delays.

2. Check Contribution Caps and Deadlines

Q: What are the 2025 contribution limits?

  • Concessional (pre-tax) contributions: $30,000
  • Non-concessional (after-tax) contributions: $120,000

All contributions must be received in your SMSF’s bank account by 30 June 2025.

Strategies to consider:

  • Contribution splitting: Share concessional contributions with your spouse to balance super benefits.
    Spouse tax offset: Claim a tax offset when contributing to your partner’s super if they earn below the threshold.
  • Government co-contribution: Low- and middle-income earners may qualify for up to $500 in co-contributions.

Q: Can I make extra contributions after 30 June?
No β€” the contribution is only recognised in the year it’s received. Always allow several business days for transfers.

3. Review and Update Your Investment Strategy

Q: Why does the ATO focus on investment strategies?
Because under SISR 4.09, every SMSF must have a written investment strategy reviewed at least annually. It ensures your fund’s investments align with each member’s risk tolerance, retirement goals, and financial situation.

Key review points:

  • Does the strategy still reflect members’ ages, goals, and risk appetite?
  • Are you maintaining diversification to manage risk?
  • Are insurance needs (like life or TPD cover) addressed?

Latitude Tip: Document every review and update β€” it’s essential evidence for your auditor.

4. Obtain Market Valuations for All Assets

Under SISR 8.02B, all SMSF assets must be valued at market value each year using objective and supportable data.
This includes:

  • Listed shares and managed funds (based on closing prices at 30 June)
  • Real estate (supported by recent appraisals or independent valuations)
  • Unlisted assets (based on comparable sales, financial statements, or independent reports)

Q: What happens if I repeat last year’s asset values?
The ATO considers this a compliance risk. Trustees should provide evidence for each valuation, especially for property and unlisted investments.

5. Prepare for Your SMSF Audit

Every SMSF must undergo an annual audit by an ASIC-registered auditor before lodging the SMSF Annual Return (SAR).

Auditors review:

  • Financial statements for accuracy
  • Compliance with SIS laws, including:

    • Sole purpose test (SISA s62)
    • Prohibited loans to members (SISA s65)
    • Related party acquisitions (SISA s66)
    • In-house asset limits (SISA ss82–85)
    • Separation of assets (SISR 4.09A)
    • Collectables and personal use assets (SISA s13.18AA)

Q: What if my SMSF fails an audit?
Your auditor may lodge an Auditor Contravention Report (ACR) with the ATO, which can result in penalties or trustee disqualification.

Latitude Tip: Provide complete and organised records early to avoid delays and additional fees.

    Self-managed super funds<br />

    6. Ensure Compliance and Record Keeping

    Accurate records are the backbone of SMSF compliance. Under SISA s35AE, trustees must retain key documents in English and accessible in Australia for at least five years.

    Essential records include:

    • Signed financial statements
    • Bank statements and transaction histories
    • Investment contracts and trade confirmations
    • Lease agreements and rental income records
    • Insurance documents
    • Trustee meeting minutes and resolutions

    Q: How long must member statements be retained?
    Member statements, contribution records, and trustee declarations should be kept for 10 years.

    7. Review Insurance and Estate Planning

    Q: Why consider insurance within an SMSF?
    The SIS Regulations require trustees to consider life and TPD insurance for members as part of their investment strategy review. Insurance can protect members’ retirement savings and provide financial security for dependants.

    Estate planning review points:

    • Are your binding death benefit nominations (BDBNs) up to date?
    • Do they comply with your trust deed and remain valid (typically 3 years)?
    • Have you reviewed your will and superannuation provisions for consistency?

    8. Plan Tax Strategies Before 30 June

    Q: How can SMSFs reduce tax legally?

    • Maximise deductible contributions within caps.
    • Realise capital losses to offset gains before 30 June.
    • Consider deferring income where appropriate.
    • Ensure expenses are paid before year-end to claim deductions.

    Latitude Tip: Consult a Chartered Accountant before executing tax strategies β€” timing and documentation are everything.

    9. Review Trustee Structure and Compliance Obligations

    Trustee responsibilities are central to SMSF success. All trustees (or directors of the corporate trustee) must understand their legal duties under SISA and SISR.

    Checklist:

    • Are trustee declarations current and signed within 21 days of appointment?
    • Are any trustees disqualified or ineligible?
    • Have you kept your contact details up to date with the ATO?
    • Is your fund registered correctly on Super Fund Lookup?

    Q: Does it matter if trustees are based in different states?
    Yes β€” ensure your fund’s control and central management remain in Australia to maintain residency status. State laws may also vary for trust documentation and witnessing requirements.

    10. Schedule Your Annual Return Lodgement

    Your SMSF Annual Return (SAR) combines income tax, regulatory reporting, and member contribution data. It must be lodged:

    • By 31 October 2025 if self-lodging, or
    • By your accountant’s extended deadline (usually February or May 2026).

    Late lodgements can lead to penalties and the fund being placed on the ATO’s β€œnon-complying” list β€” restricting rollovers and employer contributions.

        Self-managed super fund Accountant

        Common Questions About SMSF Year-End Reviews

        Q: Can I backdate contributions or pension payments?
        No β€” transactions are only recognised when received or processed. Backdating is a serious breach of ATO compliance.

        Q: What if my fund didn’t make any investments this year?
        You still need to prepare financial statements, undergo an audit, and lodge your annual return.

        Q: Do I need professional help if my fund is small?
        Yes β€” even a single-member fund must meet the same compliance and reporting obligations as larger SMSFs.

        Q: Are there penalties for late audits?
        Yes β€” the ATO can impose administrative penalties on trustees personally (not from SMSF assets), ranging from hundreds to thousands of dollars.

        Q: How often should my investment strategy be reviewed?
        At least annually, or whenever member circumstances or market conditions change.

        Common Mistakes Trustees Make Each Year

        • Missing the minimum pension payment deadline
        • Exceeding contribution caps
        • Failing to update investment strategies
        • Using outdated asset valuations
        • Incomplete audit documentation
        • Ignoring insurance and estate planning

        Avoiding these mistakes can protect your fund’s compliance status and preserve your tax advantages.

        How Latitude Accountants Can Help

        At Latitude Accountants, we help SMSF trustees across Australia stay compliant, strategic, and stress-free at year-end. Our Chartered Accountants can:

        • Review your SMSF’s investment and tax strategies
        • Prepare accurate financial statements and arrange audits
        • Ensure contributions and pensions meet ATO deadlines
        • Advise on super splitting, estate planning, and insurance
        • Provide ongoing compliance and record-keeping support

        With offices in Sydney Olympic Park, Marrickville, and Melbourne, we support over 2,000 clients nationwide β€” delivering results The Latitude Way.

        Final Thoughts: Set Your SMSF Up for Success in 2026

        A proactive review now can make all the difference to your SMSF’s long-term performance and compliance. Don’t wait until June β€” start your year-end planning today and build a stronger financial future.

        Ready to Get Your SMSF Year-End Ready?

        Let the experts at Latitude Accountants help you streamline your SMSF review and ensure full compliance before 30 June.

        πŸ“ Sydney Olympic Park | Marrickville | Melbourne
        πŸ“ž 1300 706 597
        πŸ“§ info@latitudeaccountants.com.au

        Disclaimer

        This article provides general information only and does not constitute financial or legal advice. Always seek personalised advice from a qualified Chartered Accountant or financial advisor before making SMSF decisions.

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