Sunday 18 June 2023

SMSF tax return for 2022 lodged

eSuperfund finally got our SMSF annual financial accounts and tax return for 2022 finished in early June -- not sure why is wasn't able to be completed prior to the standard 'due date' of 15 May 2023, but eSuperfund requested an extension from the ATO to 30 June 2023 and managed to get the tax return finalised and the financial statements audited by 6 June. After all three SMSF trustees (myself, DW and DS1) had reviewed and electronically 'signed' the lodgement approval, the SMSF tax return was lodged on 12 June. The SMSF was due to receive a tax refund of $29,878 - mostly due to having paid provisional PAYG tax each quarter due to realizing capital gains when we switched our asset allocation a couple of times during the first year of the pandemic. As we hadn't realized any capital gains in FY2022 the ATO had to refund the PAYG payments. The tax refund arrived in the SMSF bank account a few days ago, so we now have more than enough cash in the SMSF bank account to pay DW's annual minimum pension payment in July. She doesn't currently need the pension income (as she has started working full-time again), but having moved her superannuation into 'pension phase' when she was retrenched and initially decided to retire a couple of years ago, she is now required to make the mandatory minimum pension withdrawal each FY. She will use the pension payment to pay off some personal loan debt she had accrued while she was working in a part-time position for two years (about 6 hrs/wk) prior to getting her full-time position.

Looking at the financial accounts, our SMSF annual after-tax returns for the past few years have been:

2011FY    +9.65%

2012FY    -4.54%

2013FY    +21.54%

2014FY    +14.92%

2015FY    +12.15%

2016FY    +4.03%

2017FY    +10.42%

2018FY    +11.59%

2019FY    +9.17%

2020FY    +7.15%

2021FY    +19.26%

2022FY    -8.98%

Overall I'm quite happy with how our decision to invest via a low-cost SMSF using mostly the Vanguard High-Growth Fund as our asset allocation has worked out.

I'll be able to transfer my SMSF account from accumulation into pension phase when I turn 65 in a few years from now -- which will reduce the tax rate applicable to the bulk of our SMSF from 15% to 0%. I'll then have to also commence making the minimum 5% (for age 65-74) pension payments out of my SMSF pension account each FY, but as I'll (probably) still be working full-time I'll be able to use the tax-free pension income to start paying off my investment apartment mortgage.

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